BMED.L Regulatory News (BMED)

RNS Number : 3646J

Banque Marocaine Du Commerce Exteri

29 March 2010

 

Financial Communication of BMCE Bank Group-

ANNOUNCEMENT OF 2009 RESULTS

Substantial Reinforcement of the financial base of BMCE Bank

The Board of Directors of BMCE Bank, chaired by Mr. Othman BENJELLOUN, was held on Friday March 26, 2010, at the Bank's Head Office in Casablanca. It examined the Group's activities during the fiscal year 2009 and closed the related accounts.

In order to strengthen the capital base of the Group, the Board decided to propose to a coming Extraordinary General Meeting of Shareholders two capital increases, one to be subscribed by the CIC Group, followed by another one of up to 3% reserved to the staff members of BMCE Bank Group to be carried out in two stages in 2010 and 2012.

The Board also took note of the acquisition by the CDG Group of 8% in BMCE Bank, for an amount of more than MAD 3.4 billion, following the disposal by the bank of its treasury shares. These emblematic investments between the FinanceCom and CDG Groups in the Finance, Telecoms and Real estate industries, reflect their trust in the future of invested companies and their joint commitment to contribute more significantly to the acceleration of the economic growth in Morocco.

On the other hand, the Board co-opted the CDG in the person of its General Manager, Mr. Anas Alami and will submit this decision to the next AGM.

The Board has also endorsed the reinforcement of senior management with the appointment of Mr. Mounir Chraibi as a Delegate General Manager of the Bank, in charge of the Group's Information Technology & Process. Mr. Driss Benjelloun and Mr. M'Fadel El Halaissi are also appointed Delegate General Managers, respectively in charge of the Group's Finance & Risk and the Enterprise Bank.

The Board will propose to the AGM the payment of a dividend of 3 dirhams per share.

The 2009 IAS/IFRS financial statements are available on the bank's website www.bmcebank.ma.

 

 

·; Unprecedented reinforcement of the capital base: more than MAD 6 billion in 2010

 

- Acquisition by the CDG Group of 8% of BMCE Bank's capital

 

- Capital increase to be subscribed by the reference foreign shareholder, the CIC Group, through its Holding company BFCM, which should bring its equity stake from 19.94% to 25%

 

- Capital increase of 3% reserved to the Group's staff members and to be released in two stages in 2010 and 2012

 

 

·; Consolidation of the Bank's organization and management

 

·; Solid assets to support the Group's development in Morocco and abroad

Financial Performances impacted by a substantial effort of provisioning

BMCE Bank in Morocco: A solid intrinsic activity

·; +25% growth in Net Banking Income to MAD 3.6 billion and a significant increase of +14.3% in Gross Operating Income to MAD 1.1 billion

 

·; The rise in Net Banking Income is mainly due to the income from market activities, which surged more than three-fold to attain MAD 926.6 million. The Net Interest Income remained stable at nearly MAD 2 billion, yet the interest income on customers, indicator of the operating performance, went up by more than +15%

 

·; The growth in General Operating Expenses was contained at +6.5% in 2009 versus +13% in 2008, totaling MAD 2.3 billion. Substantial improvement in cost to income ratio by 11 percentage points to 63.3%

 

·; Provisions more than doubled to MAD 976.5 million having significantly impacted net earnings, down by -37.6% to MAD 507 million -Activity in Morocco- and to MAD 503 million -Aggregated Activity-

 

·; Balanced growth in loans and deposits, up by +10% and 8%, amounting to MAD 64.6 billion and about MAD 96 billion, respectively

 

·; +0.4%p gain in customer deposits market share to more than 14.5%, thanks essentially to the rise in current accounts market share from 16.4% to 17.6%

 

·; -0.3p% decrease in customer loans market share to 12.8%, hiding the commercial dynamism carried out in many business segments where the Bank gained market shares: cash loans (+1.1%p), consumer loans (+0.4%p), and loans to finance companies (+0.1%p)

CONSOLIDATED ACTIVITY: SHAREHOLDER's EQUITY GROUP SHARE REINFORCEd BY MORE THAN +10%

·; Sustained growth in the Bank's consolidated total assets, up by +12% to reach more than MAD 168 billion

 

·; Solid financial base, with an increase of +11.6% and +10.5% in total shareholder's equity and shareholder's equity -Group Share- to MAD 9.2 billion and MAD 6.1 billion, respectively

 

·; +6.6% increase in consolidated Net Banking Income to MAD 6.4 billion, driven by a positive growth in all its components: income from market activities (+46%), net fee income (+6%), and net interest income (+3%)

 

·; Decrease in the Group's Net Earnings from MAD 1.4 billion to MAD 820 million and in Net Earnings -Group Share- from MAD 830 million to MAD 385 million, induced by a cost of risk exceeding MAD 1 billion, that is 12 times higher than that of last year, reflecting tremendous efforts in terms of cleansing the loan portfolio

 

SOLID ASSETS FOR THE FUTURE

A reinforced financial base

 

·; Strengthening of the Bank's capital base by more than MAD 6 billion, reflecting a strong signal of trust from shareholders in the Group's growth prospects

 

- Acquisition by the CDG Group of 8% equity stake in the capital of BMCE Bank, representing about 12.7 million shares at a unit price of MAD 267, following the Bank's disposal of its treasury shares. This strategic transaction is worth more than MAD 3.4 billion

 

- Capital increase to be subscribed by the CIC Group, the reference foreign shareholder, bringing its stake in BMCE Bank up to 25%

 

- 3% capital raise reserved to the Group's staff members, expected to be released in two stages in 2010 and 2012

 

Organizational and Managerial Consolidation with the appointments by the Board of:

 

·; Mr. Brahim Benjelloun-Touimi, Director & Delegate General Manager to the Chairman in charge of coordinating the Group's business activities;

 

·; Mr. Jaloul Ayed, Director & Delegate General Manager, to carry out the process of convergence between MediCapital Bank and Bank of Africa Group

 

·; Mr. Mohamed Bennani, Director & Delegate General Manager, in charge of the network of Bank of Africa in the prospect of being appointed its CEO

 

·; Mr. Mamoun Belghiti, Director & Delegate General Manager, to chair a new entity, in the process of creation, dedicated to debt collection activity

 

·; Mr. Mounir Chraibi, Delegate General Manager in charge of the Group's IT & Process

 

·; Mr. Driss Benjelloun, Delegate General Manager in charge of the Group's Risk & Finance

 

·; Mr. M'Fadel El Halaissi, Delegate General Manager, in charge of the Enterprise Bank, federating henceforth the Corporate Bank and the Enterprises and SME's network

 

 

 

Positive prospects in 2010 thanks to:

 

·; The dynamics and the organic potential of the distribution network in Morocco

 

·; The strengthening of the Group's presence abroad, with the convergence between MediCapital Bank and Bank of Africa

 

·; The synergies between the Bank's core businesses (the private individuals & professionals market, the enterprise market, and investment and international activities) and para-banking activities (specialized financial services, insurance, mobile banking, …)

 

·; The improvement in the Bank's operational efficiency through the rationalization of operating expenses

 

·; The reinforcement of the debt collection activity

COMMERCIAL DYNAMIsm of the group's activities in a less favorable environment

BMCE Bank in Morocco: SUSTAINED EFFORTS IN TERMS OF PROMOTION BANKING PENETRATION AND INNOVATION

The Bank of Private Individuals & Professionals: sustained positioning notably thanks to the branch network expansion

 

·; Opening of 50 new branches dedicated to the private individuals & professionals in regions having a strong development potential

 

·; Broadening of the clientele portfolio, with a +7% increase in the number of new bank accounts to more than 2 million

 

·; A +0.4%p gain in the consumer credit market shares to 18.5%

 

·; Acceleration in the growth of bank cards, up by +11.1%, the best performance over the last 4 years

 

·; Rise in Moroccans Living Abroad deposits by more than 6%, with a market share maintained at 10.3%, amid a slowdown in remittances

 

·; Reinforcement of synergies with RMA Watanya as shown by a 7% increase in the revenues generated by the bancassurance activity, with an improvement in market share from 28.3% in 2007 to nearly 30% in 2008 -according to the last statistics available from DAPS-

 

·; Pursuit of implementation of the ''CAP Client Professionels'' project with an ongoing development of many agreements and partnerships

 

·; Low income banking, a major development axis invested in during 2009, with the launch of Lilkoul, a mobile phone based offer, allowing to unbanked clients to get access to banking services and perform secure transactions

The Enterprise Bank, faithful to its commitment to financing the Moroccan Economy

·; Creation of 3 new business centers, bringing the number of these specialized branches up to 20

 

·; Growth in Corporate deposits and loans by +35% and more than +10%, amounting to MAD 14.5 billion and MAD 29.1 billion, respectively

 

·; Increase of +35% in investment loans to MAD 7.8 billion versus MAD 5.8 billion a year earlier

 

·; Resolute commitment to financing large scale projects throughout the Kingdom, with a strengthened presence in national priority industries, particularly the infrastructure, telecommunication, automobile, and tourism

 

·; Consolidation of synergies with the different business lines of the Group, especially with the Bank of Private Individuals & Professionals and the Specialized Financial Services : agreement loans, product packages offered to the client companies' employees, leasing, factoring and long term leasing

INTERNATIONAL ACTIVITY: TOWARDS A CONVERGENCE OF EUROPEAN AND AFRICAN ACTIVITIES

·; Convergence project underway between Bank of Africa and MediCapital Bank, driven by synergies stemming from the complementary businesses of these Groups in Africa, one in Retail banking and the other in wholesale Banking

 

·; Satisfactory commercial performance of Bank of Africa as shown by increases of +12.8% and +9.6% in deposits and loans, attaining € 1.9 billion and € 1.4 billion, respectively

 

·; Continued development of Bank of Africa's network, with the opening of 50 new branches throughout the 11 countries where the Group is present

 

·; +24% increase in Net Banking Income of MediCapital Bank to £ 18 million, mainly due to Corporate Banking and Treasury & Capital Markets activities, accounting for 72% of revenues

INVESTMENT BANKING ACTIVITIES: POSITIVE RESULTS IN AN UNFAVORABLE ENVIRONMENT

·; Consolidation of the image of BMCE Capital Market as a first mover through the launch of three new FX derivatives products and the enrichment of the structured products offering

 

·; Maintain of BMCE Capital Bourse's position, with a 16% market share despite a difficult market

 

·; +34.5% surge in BMCE Capital Gestion's assets under management to MAD 22.83 billion versus a +16% growth for the industry, inducing a 1.62 %p gain in market share for the Group's asset management subsidiary to 12.6%

 

·; Rise of nearly 11% in BMCE Capital Titres' assets under custody to MAD 155 billion, driven notably by the good performance of the mutual funds activity

SPECIALIZED FINANCIAL SERVICES: GOOD PERFORMANCE

SALAFIN, solid fundamentals in a downturn market

·; +4% increase in consumer loans to more than MAD 2.7 billion in a context of decline in total sector's loans and slowdown in household consumption

 

·; -14% decrease in general operating expenses, with a cost to income ratio standing at 26%, the lowest level in the industry

 

·; Net earnings stable at nearly MAD 101 million, with an ROE of 18%

MAGHREBAIL, good 2009 performances

 

·; +9.7% growth in lease finance to about MAD 2.7 billion, the best performance in the sector

 

·; +17.7% increase in the outstanding amount of leases, totaling MAD 6.5 billion

 

·; Increase of +7.4% and +8% in net banking income and net earnings, attaining respectively MAD 186.2 million and MAD 77.2 million

 

MAROC FACTORING, a sustained commercial activity

 

·; +10% growth in factored revenues to MAD 3.2 billion and +4% in net banking income to MAD 32.9 million

 

·; Enrichment of Maroc Factoring's offer by a new product, Reserve Factoring, adapted to the needs of enterprises

 

·; Reinforcement of synergies with BMCE Bank's network through the marketing of a cobranded product, Maroc Factor

 

A SOCIALLY RESPONSIBLE BANK

BMCE Bank Foundation: Pedagogical innovation and strengthening of the socio-educational and community dimensions

·; Construction and equipment of three new Medersat.com schools in Oulmes, Ouarzazate and Figuig

 

·; Modernization of teaching tools through the equipment of schools in computers and digital interactive whiteboards

 

·; Creation of a training center for the pre-school teachers in Bouskoura school

 

·; Sealing of a microcredit partnership with Caja Mediterráneo and Tawada association in 2009 aiming at the fight of poverty and the improvement of living conditions of the people of the villages where the Medersat.com schools are located

Promotion of sustainable development

 

·; Implementation of a Social & Environmental Management System -SEMS-, launched in 2008 in partnership with IFC, member of the World Bank Group, in order to make the clients aware of the environmental and social aspects of their projects, while ensuring the promotion of sustainable investments

 

·; Laying the groundwork for a strategic alignment of BMCE Bank with the green economy principles, providing it with a competitive advantage and business opportunities, especially in the areas of clean production and renewable energy

 

Human Capital development, a strategic priority

·; ISO 9001 certification of BMCE Bank's RH management, first of its kind in the banking industry in Morocco

 

·; Recruitment of 552 persons as part of the accompaniment of the branch network expansion, bringing the number of staff members up to 4 900 in Morocco

 

Next on the Agenda

 

March 29, 2010

 

·; Press Conference and Analyst Meeting: Presentation of BMCE Bank Group's performance for the year ended December 31, 2009 with a live webcast

 

·; Publication of the 2009 IFRS financial statements brochure on BMCE Bank's website, www.bmcebank.co.ma

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