21 Sep 2015 10:14
BMCE BANK GROUP FINANCIAL COMMUNICATION
30 June 2015
Ait Hammou Ou Said Casbah, renovated and converted into a Medersat.com school by BMCE Bank Foundation
FIRST HALF PERFORMANCE - UPWARD TREND FURTHER CONFIRMED
BMCE Bank's Board of Directors, chaired by Mr Othman BENJELLOUN, met on Friday 18 September 2015 at the Bank's head office in Casablanca. It examined the business activity of the Bank and of the Group for the first half ended 30 June 2015 and drew up the financial statements for the period in question.
The first half 2015 financial statements under IAS/IFRS are published on the bank's website www.bmcebank.ma.
Consolidated Financial Statements
Net income attributable to shareholders of the parent company
+18%
MAD 1.1 billion
Net banking income
+6%
MAD 5.9 billion
Group's Net income
+16%
MAD 1.4 billion
Net income attributable to shareholders of the parent company rises 18% in first half 2015 to more MAD 1.1 billion
Improvement in Group profitability with consolidated ROE of 13.9% at end-June 2015 versus 8.7% at end-June 2011
Continued development of overseas operations with further consolidation of the continental dimension and the European platform registering a higher profitability
Non-performing loan ratio of 6.6% in first-half 2015, broadly unchanged over the period end-June 2011 to end-June 2015
Improved operational efficiency in both Morocco and overseas over the last four years
Parent Financial Statements
Net income
+12%
MAD 903 million
Net banking income
+2.5%
MAD 3 billion
Gross operating income
+4.2%
MAD 1.6 billion
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
BMCE BANK
OUR WORLD IS CAPITAL
RESULTS IN LINE WITH THE GROUP'S STRATEGIC DEVELOPMENT PLAN
30 June 2015
Ait Hammou Ou Said Casbah, renovated and converted into a Medersat.com school by BMCE Bank Foundation
CONSOLIDATED FINANCIAL STATEMENTS - NET INCOME attributable to shareholders of the parent company OF MORE THAN MAD 1 BILLION IN FIRST HALF 2015
Net income attributable to shareholders of the parent company rose +18% versus end-June 2014, exceeding the MAD 1 billion mark in a half year period for the first time and resulting in average annual growth of +20% over the period end-June 2011 to end-June 2015.
Increased contribution to consolidated earnings from the parent company, BMCE Bank S.A., which alone accounted for almost half of net income attributable to shareholders of the parent company (48%).
BMCE Bank Group saw continued its expansion in Africa with the African business accounting for as much as 28% of Group earnings at end-June 2015 versus 14% at end-June 2011. Its share of consolidated earnings rose by +43% on average annually since end-June 2011.
Significant improvement in the European platform's contribution which rose from 1% to 8% over the period end-June 2011 to end-June 2015, after undergoing a restructuring. The European platform, under the umbrella of BMCE Bank International Holding, brings together BBI London, BBI Paris and BBI Madrid.
Remarkable evolution of Group Net Income of +16% on a year-on-year basis, reaching MAD 1.4 billion at end-June 2015.
Improvement in annualised ROE to 13.9% at end-June versus 8.7% at end-June 2011 due to initiatives adopted under the four-year strategic development plan 2012-2015.
Double-digit growth in the main components of net banking income - net interest income and fee income, accounting for 87% of net banking income - up +12.2% and +10% respectively.
Improvement in the quality of revenues with the core business making an increased contribution to consolidated earnings.
Operational efficiency target reached with the cost-to-income ratio down from 60% at end-June 2011 to 53,1% at end-June 2014 and and to 55% at end-June 2015, the 2015 full-year target.
This was due to net banking income growth (+10%) outpacing the rise in operating expenses (+6%) over the period 2011-2015.
Net consolidated cost of risk declined 24% compared to end-June 2014 to MAD 807 million due to significant write-backs at parent company BMCE Bank S.A. and the European business.
PARENT FINANCIAL STATEMENTS - SIGNIFICANT AND STEADY GROWTH IN EARNINGS
Significant growth (+12%) to MAD 903 million in parent net income at end-June 2015 versus MAD 805 million at end-June 2014.
Parent net banking income grew +2.5% to MAD 3 billion at end-June 2015 due to a strong performance by the Bank's core businesses - fee income (+17%) and net interest income (+8.4%).
The Bank's general operating expenses in Morocco evolution contained to less than 5% on average, whereas parent net banking income grew +9% over the period 2011-2015. As a result, the cost-to-income ratio contracted from 59% to 50.5% over the same period.
Gross operating income rose +4.2% to MAD 1.6 billion in first half 2015 helped by a -3.3% decline in net provisions due to a sharp rise (+80%) to MAD 546 million in provision write-backs. As a result, the parent company's cost of risk ratio was 1%.
The Bank's share of the loan market increased 21 basis points to 14.08% due to a +2% increase in loans to MAD 106 billion versus +0.2% growth for the industry. Growth was driven by increases in loans to retail customers (+10%).
Deposits rose +11% to MAD 124 million versus +5% for the industry, resulting in a 69 basis point improvement in the Bank's share of the deposit market to 14.77%.
RISK MANAGEMENT - RISK PROFILE UNCHANGED
The Bank's consolidated non-performing loan ratio maintained to 6,6% in June 2014 and June 2015 and remains broadly unchanged over the past four years with 6.3% at end-June 2011.
Consolidated capital ratios comply with regulatory standards with a solvency ratio of 12.4% and a Tier 1 capital ratio of 9.3%.
Cost of risk ratio of 1% at end-June 2015, versus 0.9% at end-June 2011.
Forthcoming Meeting
Tuesday 22 September 2015 at 15:30:
Meeting with Analysts and the Press
BMCE Bank Group's half-year 2015 results presentation
BMCE Bank Group's consolidated financial statements (MAD M)
AAGR* 11-15 +20%
Net income attributable to shareholders of the parent company (MMAD)
595 901 1 064
June 2013 June 2014 June 2015
AAGR* 11-15 +10%
Net banking income (MMAD)
4 848 5 598 5 923
June 2013 June 2014 June 2015
AAGR* 11-15 +13%
Gross operating income (MMAD)
2 005 2 627 2 661
June 2013 June 2014 June 2015
*Average Annual Growth Rate
Net income attributable to shareholders of the parent company by geographical region at end-June 2015
Morocco 64%
Africa 28%
Europe 8%
A WINNING SALES STRATEGY UNDERPINNING GROWTH
PERSONAL AND PROFESSIONAL BANKING - INCREASED SALES
Significant growth (+10%) to MAD 34.9 billion in retail loans, driven primarily by a +9.4% increase in home loans versus +5% at industry level, resulting in market share gains of 0.5% to 14.66%. Growth of +11.8% in consumer loans, resulting in a 54 basis points contraction in market share to 19.69%.
Product range for young people enhanced with the launch of new products for students in Morocco and overseas including an assistance product for Moroccan students studying abroad "Etudiants Marocains à l'Etranger".
Bank-insurance revenue rose +20.42% with the penetration rate up from 25.6% at end-June 2014 to 34% at end-June 2015.
Range of services for professional customers enhanced with the launch of specific products for sub-segments including self-employed persons, shopkeepers and tradesmen. In addition, credit approval terms and conditions were amended and standardised.
Strong performance by the expatriate banking segment as illustrated by (i) growth of almost +4% in deposits of Moroccans living abroad (ii) a +15.8% increase in transfers from Moroccans living abroad and (iii) a +19.1% increase in property loans.
Next-generation Premium BMCE Gold and BMCE Platinum cards launched, offering customers a host of innovative features including international coverage.
New Premium bank card service introduced with all-in-one packages for retail, professional and high net worth customers and updated to include new replacement cards.
Branch network expanded by 28 additional branches compared to 30 June 2014, taking the total number of branches to 671 at 30 June 2015; improvement in productivity and a resizing of branches.
CORPORATE BANKING - INNOVATIVE FINANCING SCHEMES FOR GREEN PROJECTS
Growth in corporate deposits and corporate loans of +25.3% and +1.3% respectively compared to end-December 2014 versus +0.8% and -2.7% respectively at industry level.
Loan growth primarily driven by a +3.6% increase to MAD 28.9 billion in operating loans and deposit growth driven by term deposits which rose +32.4% to MAD 17.3 billion.
Foreign trade flow volumes grew +12.5% to MAD 61.8 billion at end-June 2015, at a faster pace than the national average of +3.7%.
Various initiatives continue to be implemented aimed at cleaning up, restructuring and recovering non-performing loans and regularising accounts showing anomalies.
Increased focus on SMEs which resulted in more than 857 SME account openings, up +14% compared to end-June 2014.
Reputation enhanced in the sustainable finance segment with the launch of 'Cap Energie', an innovative service for financing green projects, as a result of the Bank signing two partnership agreements with a consortium comprising the EBRD, EIB, AFD and KFW.
Oulad Salah business centre opened in the Casa South region.
INVESTMENT BANKING - NEW OPPORTUNITIES FOR SYNERGIES
With business conditions more challenging in first half 2015 than in 2014, BMCE Capital Markets put in a respectable performance due to organisational efficiency and an appropriate corporate strategy.
Adopting a proactive market stance, BMCE Capital Bourse's market share was as high as 23.5%, up almost +10.5p% on first half 2014. This was due to a restructuring of sales coverage and implementing a number of qualitative initiatives.
BMCE Capital Gestion Privée International established to expand the Bank's presence in Africa private portfolio management in line with the parent company's strategy.
With the stock market environment showing relative improvement compared to 2014, BMCE Capital Titres' assets under custody rose +9% from MAD 173 billion at end-June 2014 to MAD 198 billion at end-June 2015.
BMCE Capital Conseil enhanced its coverage of listed corporate customers as well as implementing a project for standardising legal and sales documentation across the Group's overseas investment banking subsidiaries.
Growth of +4% to MAD 43.8 billion in BMCE Capital Gestion's assets under management in first half 2015 with diversified assets growing +20% and short-term fixed-income assets up +32%.
The majority of BMCE Capital Gestion's mutual funds outperformed their respective benchmarks, including FCP Capital Multi-Gestion and FCP Capital Balance which outperformed by 118 basis points and 29 basis points respectively.
SPECIALISED FINANCIAL SERVICES: HONORABLE RESULTS
MAGHREBAIL
Net income of MAD 40.4 million, an increase of +4.8% compared to end-June 2014, resulting in its market share rising to 22.9% at end-June 2015 versus 21.9% at end-June 2014.
SALAFIN
Respective increases of net income by nearly 12% to 60 MMAD and Net Banking Income of 13.7% to 172 MMAD, while improving the cost to income ratio by -1,9p%, from 31.4% to 29.5% on a yearly basis.
Strengthening synergies with BMCE Bank, as evidenced by the rise in compacted loans "Crédit Immédiat" by + 12% in number and +14% in amount.
MAROC FACTORING
Maroc Factoring's net income declined -21% to MAD 10.8 million at end-June 2015 as a result of a -17% drop in net banking income to MAD 26.4 million. This was due to a number of factoring contracts maturing and to the company adopting a more selective approach to risk management.
RM EXPERTS
MAD 180 million of capital recovered at end-June 2014, an increase of +17.6%; provision write-backs rose significantly - by almost +88% compared to end-June 2014 - to MAD 120 million.
AFRICAN OPERATIONS: FURTHER EXPANSION IN AFRICA
BANK OF AFRICA
Consolidated net banking income rose +16.6% to €213.1 million with income from market operations growing +35.6% to €76.8 million, fee income up +4% to € 33.9 million and net interest income +0.25% ahead at €91.7 million.
Strong commercial activity with customer loans growing +15.1% to €3.2 billion and customer deposits up +15.9% to €4.3 billion. This was due to ongoing implementation of the CAP Customer business model, organising sales campaigns and holding 'Challenges' sessions.
Further expansion of the branch network with 41 new branch openings, taking the total number of Bank of Africa branches to 470 at end-June 2015.
Strong growth in the core business with almost 454,000 new accounts opened, taking the total number of accounts to 2.4 million at end-June 2015.
Rise in the loan loss ratio to 69.7% at end-June 2015 versus 68.1% at end-December 2014 and modest improvement in the overall non-performing loan ratio to 7.9% at end-June 2015 versus 8.5% at end-December 2014.
LA CONGOLAISE DE BANQUE
First half of 2015 marked by a net result of € 3.2 million, an increase of +6% compared to end-June 2014.
BANQUE DE DEVELOPPEMENT DU MALI
Strengthening the participation of BMCE Bank in the capital of BDM acquiring an additional 5%, bringing the percentage of interest to 32.38%.
EUROPEAN PLATFORM: NOW THE GROUP'S THIRD LARGEST PROFIT CENTRE
BMCE BANK INTERNATIONAL HOLDING (BIH)
Consolidated earnings higher at BMCE International Holding, the Group's European platform. Consolidated net income rose +35% compared to end-June 2014 to £5.4 million at end-June 2015. As a result, the European business became the third largest contributor to Group earnings.
MAD 93 million of provision write-backs on the Bank's holding in BIH.
BBI LONDON
Positive performance with net income of £2.6 million at end-June 2015, up +10.4% compared to end-June 2014.
Net banking income rose +12.4% to £7.1 million due to robust corporate banking activity which registered +27.3% growth in revenues.
Improvement in the net cost of risk due to £1.3 million in net write-backs at end-June 2015 compared to £170 thousand in net additional provisions the previous year.
BBI MADRID
Positive financial performance with all financial indicators registering double-digit year-on-year growth at end-June 2015. Net income up +84% to €4.1 million and net banking income up +47% to €8 million.
Improvement in the cost-to-income ratio which stood at 23% at end-June 2015 versus 33% the previous year due to good control of general expenses (+3.6%).
CSR: COMMITMENT EARNS GLOBAL RECOGNITION
BMCE Bank Foundation's Medersat.com network expanded with the opening of a new school in Béni Chiguer in Nador in partnership with Agence de l'Oriental, taking the total number of schools to sixty-two across the country.
New educational governance system adopted by the Medersat.com Programme which involved reorganising school catchment areas, revising timetables and amending the managerial, supervisory and educational monitoring functions.
Launched 'Cap Energie', the first ever investment loan in Morocco and the South-East Mediterranean region, via a €20 million credit line under the Moroccan Sustainable Energy Financing Facility (MORSEFF) programme, initiated by a consortium comprising the EBRD, EIB, AFD and KFW.
BMCE Bank appointed Socially Responsible Bank of the Year for the second time by The African Banker, on the occasion of the 9th edition of the African Banker Awards 2015.
BMCE Bank included in the Euronext-Vigeo EM 70 Index, a new ESG (environment, social and governance) index, comprising the top 70 most advanced companies in ESG from 900 listed companies in emerging countries.
BMCE Bank Group, via BMCE Capital Gestion, its asset management subsidiary, became the first company to launch a socially responsible fund, 'FCP Capital ISR'.
2015 AWARDS
BMCE Bank named Socially Responsible Bank of the Year at the 9th edition of the African Banker Awards. This was the second time that the Group was honoured, underlining its remarkable performance in social and environmental responsibility in both Morocco and Africa.
BMCE Capital Gestion awarded ISAE 3402 Type II global certification for a second time by PwC, a consulting firm, for internal control system efficiency.
COMING EVENT
INVESTOR/PRESS MEETING
September 22th, 2015
at 03:30 pm