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BMCE Bank Group's 2013 Annual Results

24 Mar 2014 12:23

RNS Number : 0164D
Banque Marocaine Du Commerce Exteri
24 March 2014
 



BMCE BANK GROUP FINANCIAL COMMUNICATION

 

FINANCIAL YEAR 2013

 

A DECENT PERFORMANCE BY BMCE BANK GROUP IN MOROCCO AND OVERSEAS

 

BMCE Bank's Board of Directors, chaired by Mr Othman BENJELLOUN, met on Friday 21 March 2014 at the Bank's head office in Casablanca. It examined the business activity of the Bank and of the Group for the financial year ended 31 December 2013 and drew up the financial statements for the period in question.

 

The Board of Directors will propose to the Annual General Meeting of Shareholders a dividend of 4 dirhams per share.

 

The 2013 financial statements under IAS/IFRS are published on the bank's website www.bmcebank.ma.

 

 

CONSOLIDATED ACCOUNTS

 

Net income attributable to shareholders

+33%

MAD 1,231 million

EUR 110 million

 

Net banking income

+10%

MAD 9,891 million

EUR 881 million

 

Gross operating income

+10%

MAD 3,936 million

EUR 350 million

 

STATUTORY ACCOUNTS

 

Net income

+56%

MAD 1,109 million

EUR 99 million

 

Net banking income

+5%

MAD 4.809 billion

EUR 428 million

  

Gross operating income

+21%

MAD 2.223 billion

EUR 198 million

 

 

NET INCOME ATTRIBUTABLE TO SHAREHOLDERS

AT 31 DECEMBER 2013 BY GEOGRAPHICAL REGION

 

53% Morocco

41% Africa

6% Europe

 

At the consolidated level, performance was solid and in line with corporate strategy

 

Morocco: Parent net income surpasses the MAD 1.1 billion mark

 

Sub-Saharan Africa: Bank of Africa Group begins operations in Togo and Ethiopia

 

Europe: European platform supports African business

 

First ever non-sovereign Eurobond to be issued by a Moroccan bank

 

 

 

FINANCIAL RESULTS ON AN UPWARD TREND

 

CONSOLIDATED FINANCIAL STATEMENTS: STRONG PERFORMANCE

· Remarkable growth in net income attributable to shareholders (+33%), surpassing the MAD 1.2 billion mark -EUR 110 million-. This was due to solid top-line growth with net banking income and gross operating income registering a 10% increase.

 

· Strong performance at the operating level from all BMCE Bank business lines resulting in a positive contribution to net income attributable to shareholders:

- A healthy performance by domestic banking activities including BMCE Bank SA and the investment banking subsidiary whose contributions were +55% and +52% respectively;

 

- Growth in the Group's international operations with a contribution of 47%, particularly from sub-Saharan operations which accounted for more than one-third of Group earnings (41%).

 

17% rise in the net cost of risk to MAD 1.3 billion- EUR 115 million- in 2013 due to increased provisioning. Gross provisions for customer loans and advances stood at MAD 503 million - EUR 45 million in 2013 versus MAD 217 million - EUR 19 million- in 2012 with provisions for contingencies and charges totalling MAD 976 million - EUR 87 million.

10% growth in consolidated net banking income to MAD 9.891 billion- EUR 881 million- in 2013 versus MAD 9.018 billion - EUR 803 million -in 2012, driven by its three constituents: (i) income from market activities +20%; (ii) fee income +14.5%; and (iii) net interest income +6.4%.

By sector, domestic revenues (BMCE Bank SA and its subsidiaries) rose by 7% and revenues from international operations increased more than 13.4%; sub-Saharan Africa accounted for 42% of consolidated net banking income.

Improvement in the cost-to-income ratio which contracted 0.1 point to 60.2% in 2013 versus 60.3% in 2012.

10% increase in gross operating income to MAD 3.936 billion - EUR 350 million -in 2013 versus MAD 3.583 billion - EUR 319 million in 2012.

 

Growth in customer deposits of 3% and in customer loans of 7.5% to MAD 149 billion - EUR 13 billion.

 

Group's balance sheet bolstered with a 4.5% increase in BMCE Bank Group's shareholders' equity to almost MAD 15 billion - EUR 1.3 billion. Consolidated shareholders' equity stood at MAD 19.1 billion - EUR 1.7 billion- in 2013 versus MAD 18.4 billion - EUR 1.6 billion - the previous year, accounting for 8% of total assets.

 

STATUTORY FINANCIAL STATEMENTS: A DECENT PERFORMANCE

Robust growth in net income (+56%) to MAD 1.109 billion in 2013 - EUR 99 million -versus MAD 713 million - EUR 63.5 million- in 2012 with an CAGR of 43% over the past 3 financial years.

5% growth in net banking income to almost MAD 4.809 billion - EUR 99 million-; growth was impacted by a decline in dividend income in 2013 (MAD 344 million - EUR 30.6 million versus MAD 450 million - EUR 40 million- in 2012 which included an exceptional dividend from BMCE Madrid). Excluding this factor, restated net banking would have risen by almost 8%.

In terms of the constituents of net banking income:

(i) Net interest income, accounting for more than 60% of the Bank's revenues, rose by 7.1%;

(ii) Income from market activities, accounting for more than 20% of net banking income, registered the strongest growth at +12.2%;

(iii) Fee income, accounting for 15% of BMCE Bank's revenues, rose by 7.5% compared to 2012.

4.1% increase in general operating expenses, at a slower pace than growth in net banking income, resulting in a slight improvement in the cost-to-income ratio to 60.2% in 2013 versus 60.6% in 2012 and 64.9% in 2011.

Strong rise (+21%) in gross operating income to MAD 2,223 million - EUR 198 million- in 2013 versus MAD 1,840 million - EUR 164 million in 2012.

Growth of almost 2% in the Bank's resources to MAD 109 billion -EUR 9.7 billion-with market share of 14.5%;

Further contribution by the Bank to financing the Moroccan economy as can be seen from 5.2% growth in total loans to MAD 98.4 billion -EUR 8.8 billion-, resulting in a 38 basis points year-on-year gain in market share from 13.21% in 2012 to 13.59% in 2013.

 

MAJOR EFFORT IN CREDIT RISK PROVISIONING

Modest increase in the NPL ratio to 5.22% in a context which saw the industry's NPL ratio rise from 5.13% to 6.31%.

The non-performing loan ratio net of provisions was 1.93% in 2013 versus 1.32% the previous year and 2.45% for the industry.

Considerable efforts made in credit risk provisioning resulting in growth of 45% in additional provisions net of write-backs to MAD 742 million -EUR 66 million- including additional gross provisions for contingencies and charges of MAD 503 million - EUR 45 million- (MAD 317 million net -EUR 28 million-). As a result, total gross provisions for contingencies and charges stood at MAD 976 million, -EUR 87 million- underlining the Bank's determination to adequately provide for credit impairment since 2011. Total outstanding provisions stood at MAD 4.2 billion -EUR 374 million-.

 

BALANCE SHEET STRENGTHENED

Diversification and bolstering of BMCE Bank's funding resources following the issue of a $300 million foreign currency-denominated bond. This was the first ever non-sovereign Eurobond issued by a Moroccan bank.

Improvement in the Bank's financial strength as can be seen in its improved capital adequacy ratio (domestic operations) which rose from 12.20% in 2012 to 12.31% in 2013 following the issue of a MAD 1 billion -EUR 89 million- subordinated bond at the beginning of the financial year.

Tier 1 capital ratio at 9.27% in 2013 versus 9.64% in 2012 remains above the minimum statutory requirement of 9%.

 

PERFORMING BUSINESS LINES AT THE SERVICE OF A WELL-DIVERSIFIED CLIENTELE

 

PERSONAL AND PROFESSIONAL BANKING: PLACING CUSTOMERS AT THE HEART OF THE BANK'S SALES STRATEGY

- Bolsters strategy to develop closer relations with young people and young workers by (i) developing specific products for this segment; (ii) organising grassroots initiatives; (iii) participating in forums focusing on young people and forming partnerships with non-bank associations;

- Dedicated product range for professionals extended: (i) Forfait Pro Business and Forfait Pro Privé; (ii) BMCE ProBail; (iii) payment terminals;

- Greater penetration of the private client market with increased support from the branch network and major progress in terms of synergies both domestically and overseas;

- BMCE EuroServices begins operations in Spain, Belgium Italy and France, providing new money transfer solutions and improvements to its assistance products;

- 17 new desks opened via the CM-CIC network in France, taking the total number of desks to 28 versus 11 in 2011;

- Establishes a customer relations centre, already highly active, to further improve customer service quality.

 

CORPORATE BANKING: PROVIDING STRONG SUPPORT FOR SME CUSTOMERS

- 8% growth in the SME customer portfolio in 2013 due to a successful segmentation strategy;

- Closer relations developed with corporate customers with the opening of the Tangier Gzenaya Business Centre;

- SME product range diversified, particularly in electronic services, with the launch of BMCE Bail, BMCE Direct Valeurs and BMCE Direct Report in addition to other financing solutions in partnership with CCG;

- Strong sales performance with growth of almost 9% in loans and deposits compared to 2012, outperforming the banking industry which saw loans fall by 1.1% and deposits rise by 1.5%;

- 3.24% rise in foreign trade flows versus a decline of 2% at industry level.

 

INVESTMENT BANKING: MARKET LEADER STATUS CONFIRMED

- Substantial progress was made as a result of BMCE Capital Markets embarking on a process of modernising existing organisational structures and developing new products;

- Despite a generally challenging stock market environment, BMCE Capital Bourse implemented a number of initiatives to improve its organisational structure and competitiveness, resulting in market share of 11.2%;

- BMCE Capital Gestion registered further market share gains (+1.2 point) to 15.2% following an increase of almost 11% in assets under management to MAD 37.3 billion -EUR 3.3 billion- versus growth of only 1.65% at industry level;

 

- Growth in BMCE Capital Gestion Privée's client portfolio due to an aggressive and well-structured sales strategy;

 

- 4% growth in BMCE Capital Titres' assets under custody to MAD 171 billion -EUR 15 billion- in 2013;

- BMCE Capital Conseil confirms its status as the leading advisory firm by managing a number of strategic M&A deals.

 

SPECIALISED FINANCIAL SERVICES

MAGHREBAIL

 

- Significant growth in Maghrébail's net income (+24%) to MAD 67 million -EUR 6 million- and further gains in market share from 20.5% to 21.5%;

 

- Higher sales due to increased synergies with BMCE Bank's branch network.

 

SALAFIN

 

- +3.2% improvement in Salafin's net income to MAD 95 million -EUR 8.5 million- in a context where loan volume was quasi maintained in a stable market and ROE stood at a decent level of 15.5%

 

- Only company in Morocco to launch two cards for online payments within Morocco and overseas: WEBSALAF, a credit card with repayments by instalment and EASY SHOP, a prepaid card.

 

MAROC FACTORING

 

- Significant growth in Maroc Factoring's factoring business resulting in a tripling of net income versus 2012 to MAD 18 million -EUR 1.6 million.

 

RM EXPERTS

- MAD 425 million -EUR 38 million- of debt recovered in 2013 with total provisions of MAD 141 million -EUR 12.6 million-, up 32% compared to 2012.

 

SUB-SAHARAN AFRICAN OPERATIONS: A SUCCESSFUL CONTINENTAL EXPANSION STRATEGY

Bank of Africa

- The Bank of Africa network continues to pursue an acquisition-led growth strategy with BOA-Togo starting operations and a representative office in Ethiopia recently opened, taking the total number of countries in which the Group has operations to 16. It is the only Moroccan Group to have operations in French and English-speaking countries.

- Strong performance in 2013 with 10.2% growth in net banking income to €320.6 million and growth of 7.3% in net income to €31.4 million;

- Robust sales performance with 13.4% growth in customer loans to €2.5 billion in 2013 and a 7.2% rise in customer deposits to €3.5 billion;

 

- Further expansion of the branch network with 38 new branch openings in 2013, taking the total number of branches to 408.

LA CONGOLAISE DE BANQUE

- Further expansion of the customer portfolio with growth of 8% in deposits and 5% in loans and a net income standing at EUR 7 million-.

BANQUE DE DEVELOPPEMENT DU MALI

- Growth of 14% in Banque de Développement du Mali's net income to €15.25 million in 2013 and a rise of 3% in net banking income to €39.7 million.

 

BANKING ACTIVITY IN EUROPE ACTIVITY: RESTRUCTURING COMPLETE

- Establishes BIH, a European operational platform that brings together the Group's two European banking subsidiaries, BMCE Bank International Plc (London and Paris) and BMCE Bank International Madrid;

- Positive impact on financial performance by optimised use of the European platform in organisational terms, reinforcing its contribution to Group's earnings

- First results of the reorganization of BBI London as net earnings significantly increased by +131% from £ 1.2 million to £ 2.8 million.

- In a still mixed international environment, slight derease in BBI Madrid's net income to EUR 2.8 million

- CSR AND SUSTAINABLE DEVELOPMENT: A CREDIBLE CSR POLICY

- Dr. Leila MEZIAN BENJELLOUN, Chairman of the BMCE Bank Foundation, on behalf of the latter, awarded Tiznit's Tayri n'Wakal Festival Award and the "WISE 2013 International Award" by the Qatar-based Foundation on the occasion of the 2013 World Innovation Summit for Education (WISE);

- The Foundation's status confirmed as an "advanced laboratory of educational innovation for the education system" with the introduction of a second foreign language (English or Spanish);

- Expansion of the Medersat.Com network with the opening of a new schools in Bni Chiker in the Nador region and the renovation of schools in Oulmès, Aït Dhan and El Boyed;

- New investment opportunities created by developing a range of sustainable finance products and services;

- Wider deployment of the Bank's Environmental Management System (EMS) as part of efforts to support the branch network.

 

AWARDS

- Dr Leila MEZIAN BENJELLOUN, Chairman of the BMCE Bank Foundation, awarded the "WISE 2013 International Award" by the Qatar-based Foundation on the occasion of the 2013 World Innovation Summit for Education (WISE);

- L'Ecole de la Palmeraire, produced by Dounia Productions for the Foundation, wins a "gold dolphin" in the TV Documentaries and Reports (Education) category at the Cannes Festival from among more than 700 candidates;

- BMCE Bank named "Moroccan Bank of the Year 2013" byThe Banker Magazine, a Financial Times Ltd. publication, for the seventh time since 2000;

- Named "Best Banking Group in Africa" by The European, a British magazine, in recognition of the Bank's expansion strategy in Africa;

- Named "Top Performer CSR Morocco" by Vigeo, a ratings agency, for the second consecutive year from among eight nominated companies due to the Bank's commitment to the community and local development and for its environmental strategy;

- The Bank's Environmental Management System (EMS) retains its ISO 14,001 certification.

 

FINANCIAL COMMUNICATION

Tel: +212 522 49 80 03/04 - Fax: +212 522 26 49 65

E-mail: relationsinvestisseurs@bmcebank.co.ma

Website: www.bmcebank.ma 

 

This information is provided by RNS
The company news service from the London Stock Exchange
 
END
 
 
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