30 Sep 2019 09:41
LET'S DREAM OF A NEW,
ENVIRONMENTALLY-RESPONSIBLE
WORLD…
FINANCIAL COMMUNICATION
RESULTS AT 30 JUNE AT 2019
BMCE BANK OF AFRICA
LET'S DREAM OF A NEW,
ENVIRONMENTALLY-RESPONSIBLE
WORLD…
ir-bmcebankofafrica.ma
THREE-YEAR STRATEGIC DEVELOPMENT PLAN 2019-21 OFF TO A POSITIVE START
BMCE Bank's Board of Directors, chaired by Mr Othman BENJELLOUN, met on Friday 27th, September 2019 at the Bank's head office in Casablanca. It reviewed the business activity of the Bank and of the Group for first half 2019 and drew up the financial statements for the period in question.
The first half 2019 financial report is published on the Bank's website www.ir-bmcebankofafrica.ma.
FIRST HALF 2019 RESULTS (MAD M)
Total assets
Consolidated +5%
Parent +6%
Net banking income
Consolidated +7.4%
Parent +5%
Net income attributable to shareholders of the parent company
Consolidated +4%
Parent +5.4%
Net income attributable to shareholders of the parent company
at 30 June 2019 by geographical region
Morocco 59%
Africa 35%
Europe 6%
CONSOLIDATED RESULTS IN LINE WITH CORPORATE STRATEGY
Growth recovery, as illustrated by the 4% increase in net income attributable to shareholders of the parent company, driven by a 7.4% rise in net banking income, with growth in general operating expenses contained at +2.8%.
Net income attributable to shareholders of the parent company by geographical region shows that the international business accounted for 41% at 30 June 2019 versus 43% at 30 June 2018 with Africa's contribution at 35%, broadly unchanged over the past two years.
Consolidated net banking income rose by 7.4%, driven primarily by net interest income (+4.5%) and income from market operations (+63%). By geographical region, net banking income generated by Moroccan operations increased by 8% versus +7% for international operations, which accounted for just under half of the Group's revenues, underlining the latter's well-diversified business mix.
Strong commercial performance across all business lines and geographical regions with consolidated customer loans up by almost 1.8% to MAD 182.5 billion and customer deposits growing by 1.1% to MAD 194.6 billion at 30 June 2019.
Growth in consolidated general expenses contained at +2.8% due to an operating cost reduction programme at Group level, resulting in a 2.5 percentage points improvement in the cost-to-income ratio, which fell from 57.7% at 30 June 2018 to 55.2% at 30 June 2019.
Consolidated cost of risk increased by 34% to MAD 872 million at 30 June 2019, due to the substantial effort made to clean up the balance sheet, which resulted in increased loan-loss provisioning at a number of sub-Saharan subsidiaries.
Shareholders' equity attributable to shareholders of the parent company unchanged at MAD 18.4 billion at 30 June 2019. Subsequent to the first half book-closing, BMCE Bank raised a total of MAD 1.7 billion from a capital increase in two tranches, in cash and via a dividend conversion.
The Group's capital ratios remain above the minimum regulatory requirements with a Tier 1 capital ratio of 9.2% and a capital adequacy ratio of 12.2% at 30 June 2019.
POSITIVE PROFIT GROWTH AT PARENT LEVEL
BMCE Bank SA's net banking income rose by 5.3% thanks, in particular, to income from market operations (+53%) and fee income (+7%).
5.4% increase in parent net income to MAD 1,059 million at 30 June 2019 versus MAD 1,005 million at 30 June 2018, in a context of increased loan-loss provisioning.
Improvement in Banking in Morocco's operational efficiency in first half 2019, a major priority of the Group's transformation programme, with stable general operating expenses (-0.1%), resulting in a drop of nearly 3 percentage points in the cost-to-income ratio from 53% at 30 June 2018 to 50.2% at 30 June 2019.
BMCE BANK OF AFRICA LAUNCHES AN ARRAY OF NEW SERVICES
Premium offering enhanced by (i) the Platinum Mastercard, which may be used in Morocco and abroad and which also offers a variety of non-financial benefits, (ii) the new Platinum Plus package, which charges a flat rate for an unlimited number day-to-day transactions and (iii) ) an exclusive bank card offering various non-bank benefits including enabling holders to enjoy preferential treatment (private concierge service).
2nd edition of the Entrepreneurship Club launched, offering entrepreneurs tailor-made training that enables them to enhance their skills in a number of areas.
Financial education initiative for customers with auto-entrepreneur status, organised in conjunction with the Moroccan Financial Education Foundation.
Advisory seminars organised for Moroccan investors living overseas as well as social events (sport, music and hospitality), taking account of regional differences.
Mezzanine PME launched, a new finance facility developed by the CCG (Central Guarantee Fund), targeting companies encountering difficulties.
IS Factor developed, a new factoring service for private sector companies that enables them to settle their corporation tax liabilities.
BMCE Bank's status underlined as lead-arranger, co-arranger or agent in arranging a number of structured finance transactions that provide support to businesses from a variety of industries with their large-scale investment projects.
DIGITALISATION INCREASINGLY EMBEDDED IN THE GROUP'S SERVICES
Online account opening process revamped for both Moroccans living abroad and Moroccan residents.
Mortgage application process digitalised, enabling existing or prospective customers to obtain a personalised commercial proposal with an agreement in principle provided immediately online.
Chatbot introduced, with a 'virtual' agent available to answer any questions and requests for assistance from customers.
Callbot also introduced for information or marketing purposes, enabling voice messages to be delivered to customers.
New 'BMCE Business Online' portal established, a specialised remote banking platform for corporate customers, providing comprehensive management of day-to-day domestic and international trade finance and cash management transactions, thereby enabling customers to carry out a variety of banking operations at a distance.
In'Pulse intrapreneurship and internal innovation programme launched, a flexible and pragmatic approach that enables the Bank to co-design innovative solutions by leveraging its employees' expertise and creativity.
LEADERSHIP MAINTAINED IN SUSTAINABLE DEVELOPMENT AND IMPACT FINANCE
New Medersat.com school opens in Ketama, Al Hoceima Province, with 150 pupils enrolled at the start of the 2019-20 academic year, spanning 6 years of primary education as well as pre-school.
Medersat.com school in Rwanda operational after construction work completed and the school fitted out, with 278 pupils enrolled, 52% of whom are girls. These pupils span six years of compulsory primary education in Rwanda.
Ongoing consolidation and renovation programme for Medersat.Com network schools with two Medersat.com schools renovated, the Ait Hammou Ou Said Casbah school in Zagora, and the Icharmaouen Medersat.com school in Essaouira.
Programme launched to build preschool units within state schools, with 6 fully-built and equipped preschool units inaugurated in Nador Province, under the aegis of the Eastern Regional Academy for Education and Training.
Photovoltaic solar power unit installed at the National Library of the Kingdom of Morocco (BNRM) in Rabat, satisfying up to 40% of electricity demand at the BNRM's Tower.
BMCE Bank of Africa signs the Responsible Banking Principles by which it undertakes to strategically align its operations to the UN's Sustainable Development Goals and the Paris Agreement on Climate Change. The Bank joins 130 banks from around the world in an initiative that heralds the start of the largest partnership to date between the global banking sector and the UN.
Signs up to the Chinese Belt & Road (BRI) initiative's 'Green Investment Principles' (GIP), making BMCE Bank the first African bank to support the GIPs, joining thirty or so financial institutions from around the world. Launched in November 2018, the GIPs help financial institutions and businesses adopt best practices in environmental and social risk management, green finance and supply chain management when investing and doing business within the Belt and Road region.
Joint Group CSR Charter bolstered, formalising BMCE Bank of Africa's sustainable development and CSR strategy, with subsidiaries implementing the various undertakings.
Participates in the ceremony to launch the EBRD's pioneering 'Women in Business' funding line in the Tangier-Tetouan-Al Hoceima and Eastern regions. Supported by the European Union, this initiative is designed to encourage female entrepreneurship. BMCE Bank is the first bank to offer a product exclusively for women entrepreneurs that combines financing with non-financial services.
BANK OF AFRICA
BOA's consolidated net banking income grew by 10%, driven by a 10% rise in fee income and a 6% increase in net interest income.
Net income attributable to shareholders of the parent company fell by 17% due to efforts made to clean up the balance sheet as well as an increase in loan-loss provisioning at a number of sub-Saharan subsidiaries.
Strong performance from BOA Group's core banking business with cumulative customer deposits up 6% at 30 June 2019 and customer loans 2% ahead, despite the number of branches remaining broadly unchanged during first half 2019.
HIGHLIGHTS
BMCE Bank successfully raised a total of MAD 1,734,032,700 from a capital increase in two tranches, by converting the 2018 dividend and via a cash contribution.
Equity offering reserved exclusively for British group, CDC Group plc, authorised 4 September 2019 by the Extraordinary General Meeting of shareholders. On 18 June, a strategic partnership agreement was signed between BMCE Bank Of Africa and CDC Group plc focusing on Africa, providing for the acquisition of a MAD 1.9 billion stake or just under 5% in the Bank by this UK development finance institution.
Branch office opening in Shanghai, symbolising an Africa-China alliance that aims to promote the co-development of Africa's economy, making BMCE Bank one of the first African banks to obtain authorisation to open a branch office in Shanghai.
ISO 37001 certification awarded to BMCE Bank, the first of its kind in Africa, for its Anti-Corruption Management System. This underlines the Bank's social commitment to proactively help combat this scourge as well as ensuring, first and foremost, that the principle of business ethics is the main goal of its Social Responsibility Charter.
BMCE Bank receives a special award for its pioneering contribution to the MorSEFF programme, and for its leadership in Sustainable Finance, at an awards ceremony for energy projects funded by MorSEFF - EBRD, EIB, AFD and KFW, with EU support.
ISO 14001 certification obtained for its management of environmental impacts for the 8th consecutive year and OHSAS 18001 certification for occupational health, safety and well-being for the 2nd consecutive year.
BMCE Bank of Africa named 'Most Active Partner Bank in Morocco in 2018' by the EBRD.
Digital version of the Annual Report 2018 published for the time, an unprecedented initiative in the domestic banking and financial industry. The digital version, which is contemporary, innovative and interactive, has been enhanced with additional digital age features, with more intuitive navigation and adaptable to every type of screen.
Forthcoming Meeting
Monday 30 September 2019 at 10:30
Meeting with Analysts and the Press:
BMCE Bank of Africa Group's first half 2019 results presentation
FINANCIAL COMMUNICATION
Website: www.ir-bmcebankofafrica.ma
Tel: +212 522 46 28 06 - Fax: +212 520 20 50 54 - E-mail: relationsinvestisseurs@bmcebank.co.ma