3 Oct 2011 07:00
BMCE BANK GROUP'S FINANCIAL COMMUNICATION
Consolidation of the Group's Continental Dimension
The Board of Directors of BMCE Bank, chaired by Mr. Othman BENJELLOUN, was held on Friday September 23, 2011, at the Bank's Head Office in Casablanca. It examined the Group's activities during the first half of 2011 and closed the related accounts.
The board members took cognizance of the resignation of Caja Mediterraneo as Director, concomitantly with the recent sale of its equity stake in BMCE Bank to FinanceCom, as part of a global divestment of its minority interests.
In addition, the Board of Directors, upon recommendation of its Chairman, approves the appointment of Mr. Omar Tazi as General Manager in charge of the Retail Bank.
The 1H 2011 IAS/IFRS financial statements are available on the bank's website www.bmcebank.ma
·; Good performance of the activities in Morocco, with an aggregated net income up by more than +10%.
·; Launch of a program to strengthen commercial and operating efficiency
·; Consolidation of the financial base of Bank of Africa to support the Group's continental development strategy
Group's Financial Performance constrained by effort to clean up risk
Aggregated Activity: Net Income up +10.2%
·; +10.2% Increase in aggregated net income -BMCE Bank, BMCE Bank Offshore and BMCE International Paris- to MAD 521 million.
·; +10.2% rise in Gross Operating Income to MAD 877 million, due to an improvement in the quality of the equity portfolio, within a context of a +7% increase in general operating expenses driven by non recurring items.
·; +3% growth in aggregated Net Banking Income standing at MAD 2 149 million, hampered by the underperformance of market activities. On a comparable basis, recurring Net Banking Income is up +8.1% thanks to the achievements of retail and corporate markets.
·; +10.3% increase in Customer Deposits to MAD 90.7 billion, inducing a +0.8 percentage point-pp- gain in market share to 14.83%.
·; +6.3% growth in Customer Loans to 83.7 billion, with a quasi flat market share at 12.93%
Consolidated Activity: A Stable Net Income Group Share impacted by cleaning up risk in Africa
·; Net Income Group Share stable at 517 million thanks to:
- The good performance of the Bank's activities and specialized subsidiaries in Morocco as well as of BMCE Bank Offshore;
- The positive effects of the European structures optimization during the first half of 2011
… but restrained by:
- A substantial effort to clean up risk in some countries where Bank of Africa operates (Ghana, Benin, Madagascar and Djibouti), bringing BMCE Bank's consolidated cost of risk up to MAD 506 million, that is a +61% increase compared to the 1H 2010.
- A decrease in the stock brokerage activities given unfavorable stock market conditions and non renewal of exceptional operations.
·; +8% increase in Consolidated Net Banking Income, especially driven by African based subsidiaries, accounting for 38% of the Group's revenues as of June 30, 2011 compared to 33% a year earlier.
·; Pursuit of the Group's growth as consolidated total assets amounted to more than MAD 196 billion, up +14% compared to the 1H 2010.
·; Increase in customer deposits and loans of +13% and +10% compared to end of June 2010, attaining more than MAD 136 billion and about MAD 113 billion, respectively.
·; Significant strengthening of capital base, as evidenced by a +33% rise in Shareholder's Equity over the same period, reaching more than MAD 12 billion, following two capital increases carried out during the second half of 2010, one reserved for the French Credit Mutuel-CIC Group and the other for BMCE Bank Group's employees.
Improvement in the Bank's Risk Profile
·; Growth in Non Performing Loans contained at +0.56% versus a +6.3% increase in loans, inducing an enhanced NPL ratio by -28 basis points to 4.94%, a level below the industry's average (5.12% according to the Moroccan Banking Association's 1H2011 statistics as of June 30, 2011)
·; Strong capital base, with a capital adequacy ratio improved to 11.84% and Tier 1 to 9.1% as of June 30, 2011
·; Adequate liquidity profile, with a liquidity ratio of more than 120%, a level above the regulatory minimum required.
·; Significant achievements of the debt collection activity collection, now managed by RM Experts, a fully owned subsidiary of BMCE Bank, with +13% increase in cumulative recovered NPL assets to MAD 2.6 billion.
TRANSFORMATION PROGRAM: THE BANK'S PERFORMANCE LEVER IN MOROCCO
·; Conduct of a transformation program aimed at improving performance through 4 key components:
- Commercial success supported by two flagship projects, namely Regionalization and Customer Relationship management, CRM :
Regionalization
Project aimed at improving the bank's commercial efficiency through (i) making the client closer to the decision center, (ii) reduced processing time and (iii) empowerment of regional branches for more proximity to the customer.
Customer Relationship Management
Project in partnership with CM-CIC and RMA Watanya to promote better customer knowledge and responses to their needs, while saving time for commercial tasks
- Risk Management with the establishment of a Permanent Control Unit to better monitor and reallocate the number of resources devoted to the internal audit through the implementation of a dedicated information system.
- Improvement in the operating efficiency through the automation of processes and identification of important cost savings
- Simplification of the operating model thanks to the implementation of the Cap Process Project aimed at optimizing back offices, especially through (i) saving more time for commercial activities at the branches, (ii) reducing processing cost and (iii) securing transactions for a better risk control
A base of business activities contributing to THE GROUP'S POSITION
Retail Bank: New promising market segments
·; Proven capacity of the retail branches network to mobilize resources, with a more than +6% increase in checking accounts, bringing the market share up to 13.41% as of June 30, 2011 versus 13.38% a year earlier.
·; Improved consumer credit market share by +1.4 pp to 19.23%.
·; Good dynamics of electronic banking activity in Morocco as evidenced by +9.3% growth in the number bank cards and the launch of BMCE e-pay, a card used to make on line payments.
·; Slight increase in bancassurance contracts of +2% compared to 1H 2010, attaining more than 642 000 contracts.
·; Reinforced position on the High-End customers, a new promising market, with the opening of 3 ''premium'' branches.
·; Energizing the professionals market through improving products and services offering, deployment of commercial and marketing actions, and reinforcement of partnerships.
Corporate Bank: A strengthened presence
·; Good performance in terms of investment loans, up +6% to MAD 9.4 billion, underlying the bank's commitment towards SMEs.
·; Increase in loans granted to corporations of nearly +5%, standing at MAD 34.8 billion.
·; Achievement of important project finance operations with public offices and major groups.
Investment Bank: Resilience in a difficult market environment
·; Confirmed resilience to sluggish markets by BMCE Capital Markets which recorded a significant growth in its volumes during the first half of 2011, especially on the Fx, fixed income and private debt markets, in line with its innovation strategy
·; Improvement in the service quality of BMCE Capital Bourse through the set up of a market order system throughout the branch network.
·; Ongoing growth of BMCE Capital Gestion's assets under management, up by nearly 7% to MAD 32.5 billion, making it the third asset manager with a market share of 14.2%.
·; Increase in BMCE Capital Titres' assets under custody of +10% on a rolling year basis, attaining MAD 184 billion
·; Significant achievements for BMCE Capital Conseil assigned financial advisory business from major companies.
Specialized Financial Services: +24% increase in contribution to Net Income Group Share
Increase of +24% in the Specialized Financial Services' contribution (leasing, consumer credit, factoring and credit insurance) to Net Income Group Share to more than MAD 73 million, bringing the share of this business line in the group's earnings up to 14% versus 11% a year earlier.
Maghrebail
·; Reinforced position in the leasing industry, with a market share improved by +30 basis points to 19.8%.
·; Increase in turnover of nearly +12% to MAD 1.25 billion and improvement in the cost to income ratio by +3.6 pp at 24.2%.
SALAFIN
·; +8.3% growth in the volume of loans granted by SALAFIN to about MAD 514 versus a -1% decrease for the sector.
·; Continued efforts to improve the quality of service, notably through the launch of an online card to make purchases abroad and through the optimization of car loans packages.
MAROC FACTORING
·; +17% growth in the factored turnover, standing at MAD 2.1 billion.
·; +7% increase in the Net Banking Income to 16.5% as of June 30, 2011
REINFORCEMENT OF THE BANK'S EQUITY STAKE IN BANK OF AFRICA ALONG WITH DEVELOPMENT OF SYNERGIES
BANK OF AFRICA
·; Increase of BMCE Bank's stake in the capital of Bank of Africa to 59.39% starting from July 2011 and ongoing development of synergies between the two groups, especially in risk management, debt collection, HR management, general control and IT.
·; Pursuit of internal and external growth of BOA Group, as shown through the opening of some fifty branches on a rolling year basis and the acquisition of a Bank in Ghana, Amalgamated Bank, joining the family of BOA's 14 commercial banks.
·; Strengthening of BOA's consolidated shareholder's Equity by +34% to about EUR 366 million, following the capital increase of BOA Group to support the expansion strategy throughout the continent.
·; Good operating performance, as evidenced by the double digit growth in key activity indicators: Net Banking income (+19% to EUR 116 million), loans (+18% to EUR 1.7 billion) and deposits (+25% to EUR 2.7 billion)
LA CONGOLAISE DE BANQUE
·; Maintain of leadership thanks to a sustained commercial dynamic, with a very positive growth in loans and deposits, up +49% and 40%, respectively compared with the 1H of 2010 to about EUR 152 million and EUR 363 million.
·; Remarkable increase in earnings: +30% in net income to EUR 3.7 million, +21% in Gross Operating Income to EUR 5.6 million and +19.5% in Net Banking Income EUR 11.7 million.
·; Reinforcement of proximity with customers thanks to the network extension to 17 branches that is the largest banking network in the country.
BANQUE DE DEVELOPPEMENT DU MALI
·; +4.3% Rise in the contribution of Banque de Développement du Mali to Net Income Group Share to MAD 14.5 million as of June 30, 2011.
FIRST RESULTS OF THE EUROPEAN PLATFORM OVERHAUL
BMCE Bank INTERNATIONAL MADRID
·; +39% growth in net income to EUR 1.8 million due to the business development with a +17.5% increase in net banking income to EUR 4.4 million.
·; Improvement in the asset quality, with a decrease in the NPL ratio by 0.14 pp to 0.6% against an average of 5.65% for the Spanish banking industry as of end of march 2011.
BMCE Bank INTERNATIONAL PLC -UK
·; Significant improvement in the BMCE International Plc deficit at the end of the first half of 2011, reflecting the positive impact of the restructuring plan of the Group's London based subsidiary characterized by a refocus on traditional corporate banking and cost control through the optimization of certain support functions.
ONGOING DEVELOPMENT OF THE CSR AND SUSTAINABLE DEVELOPMENT
BMCE BANK FOUNDATION
·; Construction of two new schools and modernization of equipment for 35 medersat.com schools.
·; Enlargement of the continental dimension of the BMCE Bank Foundation through a project of building a Medersat.Com school in Bamako, Mali and consolidation ofpartnership with the Tawada Association for microcredit.
SUSTAINABLE FINANCE
·; BMCE Bank, the first bank to be ISO 14001 certified for Environmental management in Morocco and the MENA region MENA, awarded by the Bureau Veritas Certification on June 17, 2011
·; Launch in process of green finance activity for renewable energy development projects
Investor Relations
BMCE Bank
Tel: +212-522-498-003
Fax: +212-522-264-965