BMED.L Regulatory News (BMED)

RNS Number : 3913T

Banque Marocaine Du Commerce Exteri

27 September 2010

 

FINANCIAL COMMUNICATION OF BMCE BANK GROUP

1ST HALF OF 2010

 

A STRENGTHENED FINANCIAL BASE TO SUPPORT SUSTAINED GROWTH

 

The Board of Directors of BMCE Bank, chaired by Mr. Othman BENJELLOUN, was held on Thursday September 23rd, 2010, at the Bank's Head Office in Casablanca. It examined the Group's activities during the first half of 2010 and closed the related accounts.

A complete version of the IAS/IFRS financial statements for the first half of 2010 is available on the bank's website www.bmcebank.ma.

 

Rebound of Consolidated Results REINFORCEMENT OF SHAREHOLDERS' EQUITY

Net Banking Income CDG GROUP

+13% MAD 3.4 billion

To more than MAD 3.7 billion Acquisition of BMCE Bank's treasury shares -First half of 2010-

 

Gross Operating Income CREDIT MUTUEL-CIC GROUP

+16.4% MAD 2.5 billion

To more than MAD 1.5 billion Capital increase reserved to the foreign reference shareholder -Second half of 2010-

NET INCOME GROUP SHARE

+14%

To about MAD 517 million

 

 

 FIRST HALF OF 2010 UNDER FAVORABLE AUSPICES

 

CONSOLIDATED ACTIVITY: EQUITY REINFORCED BY +29%

·; Increase in Net Banking Income of nearly 13% to more than MAD 3.7 billion as of June 30, 2010, driven by interest and fee generating activities (+15.6% and +10.4%, respectively), and market activities (+10.6%).

 

·; Improvement in operating efficiency, as cost to income ratio dropped by 130 basis points to 58.8%.

 

·; Good performance of the Group's operating activity, as shown by a +16.4% growth in consolidated Gross Operating Income to more than MAD 1.5 billion.

 

·; A +14% rise in Net Income Group Share to about MAD 517 million, thanks to a positive performance of the different Group's business lines, both in Morocco and abroad.

 

·; Strengthened financial base, through an increase in shareholder's equity by more than +29%, following the disposal of treasury shares to the CDG Group.

 

·; Ongoing growth in total assets, attaining MAD 172 billion MAD, up by +8.3% compared to the first half of 2009.

 

·; Good commercial momentum in a difficult economic environment, with a growth of +15% in customer loans and +6.2% in customer deposits, to MAD 102 billion and MAD 120 billion, respectively.

 

ACTIVITY IN MOROCCO: THE CORE BUSINESS PERFORMS WELL

·; +9.7% increase in Net Banking Income of BMCE Bank Plc to more than MAD 2 billion, induced by a positive growth in all its components, namely net interest income (+12.7%), net fee income (+9.3%), and income from market operations (+10.5%).

 

·; Cost to income ratio improved by 70 basis points, down to 57.4%, along with a contained growth in general operating expenses at 8.3%, despite an important investment program: a fifty branches were opened and a hundred of employees hired over the June 2009-2010 period.

 

·; Increased NPL ratio, in a context of rising risk in some industry segments of the Moroccan economy, from 5% in FY2009 to 5.2% as end of June 2010, a level remaining below that of the banking sector (5.7%)- Moroccan Banking Association figures.

 

·; Substantial efforts in terms of provisioning the equity portfolio, having significantly impacted the growth in gross operating income, slightly up by +1% to 800.4 mMAD, and in net earnings, slightly down by -1.4% to 478.4 mMAD.

 

·; +21% increase in outstanding loans, exceeding MAD 73 billion, reflecting the central role of the Bank in the financing of the local economy.

 

·; Growth in customer deposits of nearly 4%, in line with that of the banking sector's resources. This slowdown in the savings inflow due to the impact of the international financial crisis on the non agricultural economic activities.

 

·; +0.2 percentage point gain in loans market share to 13.1% and maintained deposits market share to 14.1%.

 

An efficient debt collection activity

 

·; Increase of about +6% in recovered NPL assets as end of June 2010 to more than 150 mMAD.

 

·; Continued efforts to improve the recovery process, particularly through the development a dedicated management tool and restructuring of the mass recovery.

 

·; First milestones achieved for the creation of RM Experts, a specialized subsidiary in debt collection.

 

Promising Prospects for 2010-2012

In line with its strategic guidelines for the years 2010-2012, BMCE Bank Group plans to continue its development both in Morocco and abroad, with the mobilization of adequate resources to fuel its ambitions to expand its reach in the continent and ensure its sustained growth for the future:

- Disposal of treasury shares to the CDG Group, providing an additional equity of MAD 3.4 billion

 

- Cash Capital increase reserved to the French Credit Mutuel-CIC Group, allowing a reinforcement of the Bank's core equity by MAD 2.5 billion

 

- Further strengthening of the capital in the next two years, especially through the association of the Group's personnel to the future capital increases

 

- Establishment of a new organization, with the reinforcement of the General Management in Morocco and the deployment of part of the core of Senior Management abroad, in addition to the consolidation of the governance bodies.

 

- Acceleration of the collection of resources through continued banking penetration via network expansion, with the opening of a fifty branches per year over the 2010-2012 period.

 

- Cost Control, a strategic priority for an optimized profitability

HONORABLE COMMERCIAL PERFORMANCE IN A MIXED ECONOMIC ENVIRONMENT

ACTIVITY IN MOROCCO: a sustained commercial dynamic

The Individuals & Professionals Bank, faithful to its proximity and banking penetration policy

 

·; Pursuit of the development of the distribution network, with the opening of 56 new branches dedicated to the individuals and professionals' customers, on a rolling year basis, bring the size of the network to 577 branches, including 20 business centers, and one corporate branch.

 

·; Broadening of the client base, with a +7% increase in the number of accounts to more than 2 million at end of June 2010.

 

·; New impetus for the development of bancassurance business, with a significant improvement in net subscriptions by +16.7% to nearly 630,000 contracts and increase in generated revenue by +22% compared to H1 2009.

 

·; Sustained growth in electronic banking activity, as evidenced by a +14% rise in bank cards.

 

·; Increase in Moroccans Living Abroad's Deposits of +4.3% compared to H1 2009, amounting to more than MAD 12.6 billion; market share maintained at 10.2% in a context of growing competition.

 

·; Launch of BMCE Lilkoul, an offer dedicated to unbanked consumers.

 

·; Marketing of a new offer for professionals' customers and several new agreements and partnerships in the course of achievement, aiming at reinforcing the Bank's position in this segment.

 

The Enterprise Bank, increased presence in national priority sectors

 

·; The Enterprise Bank's contribution to the acceleration of the Moroccan's economy development, through the financing of large scope projects in strategic sectors, such as infrastructure, telecommunication, real estate and tourism

 

·; +15% growth in corporate loans of +15% to more than MAD 33 billion

 

·; Consolidation of synergies between the Corporate Bank and the Individuals and Professionals Bank, inducing a rise in agreement real estate and consumer loans of +25% and +17.6%, respectively.

 

·; Encouraging commercial performance of the business centers, with a growth of +10% in investment loans and +11% in import volumes, at a faster pace than that of the local economy.

 

·; Increased synergy with specialized financial subsidiaries: very significant contribution in terms of value to factoring and leasing businesses, that is +134% and +43%, respectively.

 

Investment Banking Activities: Consolidation of the first mover and innovative image of BMCE Capital

·; Reinforced position of BMCE Capital Markets on the FX activity, with the launch of a new derivative product, and the steady improvement in market share to 19% in this market segment.

 

·; Consolidation of BMCE Capital Bourse's standing on the Moroccan stock market, with an enhanced market share by more than 10 basis points to 26.3%.

 

·; Rise in assets under management of about +14%, reaching MAD 26 billion, outperforming the industry having recorded an average growth of +11.5%.

 

·; +15% growth in BMCE Capital Titres' assets under custody to MAD 167 billion, mostly capitalizing on the good behavior in the mutual funds custody activity.

Specialized Financial Services

MAGHREBAIL

 

·; +12.5% increase in turnover to more than MAD 1.1 billion, further bolstering its position in the leasing industry

 

·; Reinforcement of BMCE Bank's equity stake in the capital of Maghrebail to 51% in July 2010, furthering the development of synergies between the two entities

 

SALAFIN

 

·; +78% growth in Net Banking Income to MAD 143.4 MDH, mainly driven by a positive trend in net interest income, up by +27%, in a context of a flat credit consumer market.

 

·; Enrichment of the offer through the launch of two new products: a new alternative car financing (Murabaha auto) and a financing offer for the private sector retirees (CIMR).

 

MAROC FACTORING

 

·; Rise of +22% of Maroc Factoring's turnover to MAD 1.8 billion, as of June 30, 2010.

 

International Activities: Reinforcement of the stake in Bank of Africa and reorganization of the European platform

 

·; Consolidation of the strategic partnership with Bank of Africa Group, through an increased equity stake of BMCE Bank in the capital of its African based subsidiary from 42.5% to nearly 47%. 

·; New growth horizons for Bank of Africa Group, thanks to the creation of new entities:

 

- BOA Finance, a Paris based finance company, seeking to facilitate financial flows between Europe and the African countries when the Group is present

 

- BOA Togo and BOA DRC - Democratic Republic of Congo, reflecting the Group's desire to continue geographic expansion, now reaching 13 African countries

 

- BOA Asset Management, an asset management company, enabling the Group to diversify and enrich its products and services.

 

·; Contribution of African subsidiaries up to 19% in to H1 2010 Net income Group Share, thus confirming BMCE Bank Group's ambition to become a reference player in the continent.

·; Changing the name of MediCapital Bank to BMCE Bank International Plc, as part of the consolidation of the Group's banking platform in Europe, placing it under the parent company's banner.

·; Strengthening of the capital base of the Group's London based subsidiary to consolidate its foundations and accompany a restructuring plan under way, aiming at optimizing its structures in relation with the context of its markets.

 

·; +12% growth in Net Banking Income of BMCE Bank International plc to £ 9.5 million at the end of the first half of 2010.

 

·; Significant increase in the net earnings of BMCE International Madrid by almost 33% to MAD 14.5 million at the end of June 2010.

A RESOLUTE COMMITMENT TO CSR AND SUSTAINABLE DEVELOPMENT

 

BMCE Bank Foundation

 

·; Extension of the Medersat.com network through the opening of 5 new schools in rural areas, as part of its original mission of promoting education throughout the Kingdom.

 

·; Undertaking of several actions, especially relating to the modernization of teaching practices in rural schools, the reorganization of the Medersat.com program, and the openness to new foreign partners.

 

Sustainable development at the heart of the strategy

 

·; Adoption of the equator principles by BMCE Bank, thus becoming the first Bank of the Maghreb region to embrace this approach

 

·; Pursuit of the operational steering of the Social & Environmental Management System, SEMS, through the accompaniment of clients in identifying social and environmental risks inherent to their investment projects.

 

 

 

This information is provided by RNS

The company news service from the London Stock Exchange