BMED.L Regulatory News (BMED)

21 Sep 2007 11:33

Banque Marocaine Du Commerce Exteri21 September 2007 SEMI-ANNUAL CONSOLIDATED RESULTS OFBMCE BANK GROUP The Board of Directors of BMCE Bank met on September 11th , 2007 under thechairmanship of President Othman Benjelloun. It examined the activity of theBank during the first half of 2007 and closed the related accounts. OUTSTANDING GROWTH IN RESULTS, WITH A GROSSOPERATING INCOME OF MORE THAN MAD 1.5 BILLION FINANCIAL PERFORMANCES AT THE LEVEL OF AMBITIONS . Substantial growth of +84% in BMCE Bank Group's net consolidated earnings, on a comparable basis, to MAD 932 million in June 2007, compared to MAD 505.7 million in June 2006. . Very strong increase of +70.4% in net income, on a current basis, thanks to the 89% growth in net earnings of the banking activity in Morocco, and this is in an investment context related to the creation of MediCapital Bank in London. . A 85% rise in net consolidated earnings -Group share- to MAD 882 million in June 2007, on a comparable basis, and +70% at current basis. . A notable increase of +50.3% in the consolidated Net Banking Income to MAD 2,611.2 million. This performance is due, on one hand, to the growth in the intrinsic activity, and on the other hand, to the strong increase in income from market transactions, driven by the capital gains realized from the sale of a 5% equity stake to Caja de Ahorros del Mediterraneo, following an industrial and equity-based partnership. A STRATEGY OF STRONG ORGANIC GROWTH . 10% growth in NBI related to the core activity, thanks to the development and commercial revitalization program undertaken by the Bank. . Acceleration in the Bank's organic growth, with the opening of 22 branches - a total of 70 branches is expected by the end of 2007- and the recruitment of 285 new staff members, bringing the general operating expenses up by 25.7%. . Improvement in cost to income ratio from 54.7% to 41.6% at the end of June 2007, given the outstanding growth in NBI. . Noteworthy progress in the commercial activity with an increase in deposits and customers loans by 33% and 39% respectively, inducing an increase in the market shares of most segments of activity. . Reinforced positioning on the Individual market, as shown by a sharp increase of 21% (1) in interest margin, thanks to the growth in mortgage and consumers loans, and by a substantial increase of 30% in fee income. IMPROVEMENT OF THE RISK PROFILE . Improvement in the coverage ratio by 6%p to 85.5% compared to 79.5% in June 2006, and in the NPL ratio by 2%p to 5.96%, in a context characterized by the quasi-stagnation of non performing loans and 7% increase in provisions. . Steady recovery efforts, bringing the amount of provisions write-backs up by 33% to MAD 109 million. FINANCIAL FUNDAMENTALS FEEDING THE CONFIDENCE OF SHAREHOLDERS . Acceleration in the growth of assets, up by 28.4% to MAD 98 billion at the end of June 2007, thanks to the vigorous development of the outstanding amounts of loans and deposits. . Strengthening of the Bank's financial base, with a 11.4% growth of the consolidated shareholders' equity-Group share to MAD 7.4 billion. . Outstanding performance of BMCE Bank stock, with a 125% increase in the stock price over the first half of 2007, reaching MAD 2,790 on June 30th, 2007, over-performing the MASI and MADEX indexes (+21%) and the Banking sector index (+46%). (1) Interests revenues (MAD 1,131,716 thousand) and interests expenses (MAD907,413 thousand) on leasing operations were recorded, as of June 2006, on theheadings "Interests and assimilated revenues" and "interests and assimilatedexpenses", respectively. As for June 2007, the revenues and expenses related tothese operations were recorded on the heading "profit from leasing and rentedassets". This induces a non significant economic decrease of the interest marginby 7.2%. Adjusting for these changes, the interest margin increased by 21% forthe first half of 2007. CONSOLIDATED RESULTS OF SUBSIDIARIES ON A CURRENT BASIS June 2007 June 2006 % Contribution % Contribution BMCE Bank (Domestic activity) 86.3% 75.9% BMCE Bank International activitiesBMCE Paris, BMCE International, BMCE Bank Offshore,Banque de Developpement du Mali, la Congolaise de Banque - 7.4% Specialised Financial ServicesSalafin, Maghrebail, Maroc Factoring, Acmar 7.3% 9.7% Asset Management and other Investment BankingActivities BMCE Capital S.A (*), BMCE Bourse,BMCE Capital Gestion, Casablanca Finance Markets, Medicapital Bank 6.3% 7.0% (*) BMCE Capital S.A consolidated results since December 2005. CONSECRATION OF BMCE BANK AS A LEADING PLAYER WITH A CONTINENTAL DIMENSION Commercial performance levels, innovation and synergies have highlighted theachievements of BMCE Bank Group during the first half of 2007, boosted by asustained improvement in the contribution of the different subsidiaries and theresults of the group. BMCE BANK IN MOROCCO ENGAGED IN A DYNAMIC OF CONSTANT IMPROVEMENT OF THEFINANCIAL AND COMMERCIAL PERFORMANCE Individuals and Professionals market . Carrying over of the internal growth program by the opening, during a period of six months, of 22 new branches, within the framework of the reinforcement of proximity to customers, and the opening of more than 200,000 new accounts on the books of BMCE Bank for individual & professionals. . Speeding up of the commercial development with indicators registering a remarkable growth notably for deposits, up by 21%, the outstanding amounts of subsidized consumer loans "credit immediat", up by 134%, Bancassurance contracts, up by 15% and electronic payments cards, which increased by 9%. . Strong presence on the activity of mortgage loans recording an outstanding performance of 56%, having generated a gain of 1.7p market share to 11.8% Active contribution to the promotion of social housing reinforced by the conclusion of partnerships with the microfinance associations, Zakoura and Al Amana and the reconduction of "Salaf Caravane", having targeted the various regions of the country. . Steady growth of the Moroccan expatriates activity with deposits and money transfers registering an increase of +28% and +26%, respectively. . High notoriety of BMCE Bank on the professionals market as shows by the doubling of the production of "Pack Pro" for liberal professions. Enterprises and SME market . Consolidation of the relations with the enterprises and SME clientele reflected by the 21% increase in commercial activities . entrusted by this clientele to the different business centres, 12.6% growth in investment loans and 13.6% rise in real-estate development loans. . Extension of the business centres network intended for the enterprises clientele by the opening of new centre in Meknes. . Enrichment of the products offer to the clientele by the launching of innovative products such as the financing of the franchisees "HANOUTY". . Strengthening of the bank's position as a key player in foreign trade activities; import & export domiciliation increased by 28% and 8%, respectively. Corporate activities . Substantial commercial results with a steady increase of 14% in commitments, and 26% rise in deposits supported by a dynamic of synergy with the other entities of the Bank and the Group. . Sustained Corporate activity via (i) the development of partnerships with foreign banking institutions on Projects Finance and (ii) the extension of the business with the quest of new important customers, thanks to the global and attractive services offer. . Semester marked by the continuous innovation efforts in terms of financing package , notably, with the issuing of bonds for a renowned national group, including an ordinary part of bonds and another part of bonds convertible to stocks. THE DEVELOPMENT OF BMCE BANK'S INTERNATIONAL ACTIVITY IS FURTHER MOVING FORWARD . The agreement to operate as a universal bank was delivered by the British monetary authorities to MediCapital Bank, the London based subsidiary of the Group, which federates all the activities of BMCE Bank in Europe and specializes in Corporate Banking, and Investment Banking and Markets. . Alliance between BMCE Bank Group and AFH/Bank of Africa, third banking group in the West African Economic and Monetary Union and present in 10 countries in west and east Africa, trough the acquisition of a 35% equity stake by BMCE Bank. ASSET MANAGEMENT AND OTHER INVESTMENT BANKING ACTIVITIES: SIGNS OF PERFORMANCEAND INNOVATION . Maintaining of BMCE Capital Markets of its market maker position in money and debt markets, with an increase in the trading volume in the FX derivatives market. . Reinforcement of BMCE Capital Bourse's position among leading brokerage firms in the shares market, with a market share of 20.2%. . 30% growth in BMCE Capital Gestion's assets under management to MAD 16.7 billion and extending the managed funds portfolio to include FCP Capital Multi-gestion and FCP Capital Maghreb, an equity fund listed on the Casablanca stock exchange and on other markets of the Maghreb. . 48% increase in BMCE Capital titres' assets under custody to MAD 115 billion . An important growth potential for BMCE Investment, as shown through its initial achievements during the first semester of 2007, such as the launching of the Maghreb Siyaha fund and the contracting of large scope advising and investment operations. . 42% increase in the business volume of BMCE Capital Conseil, in a context of a record number of deals, including 3 IPOs. . Development of expertise in terms of large infrastructure projects finance by BMCE Capital Dakar, the Senegal based subsidiary, continuing its increase of deal flow . First fruits borne out of the synergy with Axis Capital, the Tunisian subsidiary of BMCE Capital, as shown through its good performance in advising, brokerage and mutual funds management activities. SPECIALIZED FINANCIAL SERVICES ACTIVITY . 16% increase in the contribution of Salafin to the consolidated income to MAD 41 million, driven by the growth in production, particularly in personal loans. . Double increase in the contribution of Maghrebail, the leasing subsidiary, to the consolidated income to MAD 12.9 million . 35% increase in Maroc Factoring's turnover, induced by a growing demand in the domestic market and by the strengthening of synergies with the Bank. FIRST HALF 2007 HIGHLIGHTS . BMCE Capital Gestion rated "M2 - excellent" by Fitch Ratings. . Winning of the Human Resources Prize for the year 2006, awarded by the HR Management Association, AGEF. This historical distinction, first of its kind in Africa, rewards the best practices in management and human capital development. . Winning, for the second time in a row, of the first prize in Financial Communication, awarded by the Moroccan community of financial analysts. BMCE Bank is the first Moroccan bank to publish a Corporate Social Responsibility Report, which reflects its dynamic and exemplary social and societal role. . Continuous integration of the major structuring projects (update of the information system, setting of reporting and decision making support tools, etc), to keep up with the bank's growth and sustain the increase in the business volume. The abbreviated semestrial report 2007 will be soon available on our website www.bmcebank.ma Financial Communication DepartmentTel. : +212 22 49 80 04/15Fax : +212 22 26 49 65e-mail: communicationfinanciere@bmcebank.co.ma This information is provided by RNS The company news service from the London Stock Exchange