Bank Africa (a) Regulatory News (BOAA)

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BANK OF AFRICA

BMCE GROUP

ANNUAL RESULTS

31 DECEMBER 2021

2021, A REMARKABLE YEAR FOR BANK OF AFRICA

BANK OF AFRICA - BMCE Group's Board of Directors, chaired by Mr Othman BENJELLOUN, met Friday 25 March 2022 at the Bank's head office in Casablanca. It reviewed the business activity of the Bank and of the Group for the financial year ended 31 December 2021 and drew up the financial statements for the period in question.

The Board of Directors will propose that the forthcoming Annual General Meeting of Shareholders reappoint the following Directors for a further term, (i) the Caisse de Dépôt et de Gestion, represented by Mr Abdellatif Zaghnoun, its Chief Executive Officer, and Mr Brahim Benjelloun-Touimi, BANK OF AFRICA Group's Director and Delegate General Manager.

The Annual General Meeting will also be asked to take note that two independent Directors, Messrs François Henrot and Brian Henderson, will not be reappointed for a further term. This is because, with their 6-year term expiring, they no longer satisfy the independence criterion defined in the last paragraph of Bank Al-Maghrib's Circular 5/W/16 of 10 June 2016, which sets out the terms and conditions for appointing independent directors and members to credit institutions' administrative bodies.

The Chairman of the Board and all other Directors paid a heartfelt and glowing tribute to both Independent Directors for the high-quality and pertinent contributions made to the work of the Board and of the specialised Committees.

In addition, the Board of Directors will ask the forthcoming Annual General Meeting to authorise a bond issuance programme consisting of (i) a subordinated bond issue amounting to MAD 1 billion overall, to be carried out, in one or more tranches, via a domestic public offering, intended to help finance the Group's development, and (ii) a 'social bond' issue, the first of its kind in Morocco, amounting to MAD 500 million overall.

The Board of Directors will ask the Annual General Meeting of Shareholders to approve a 4 dirhams per share dividend distribution.

Similarly, it will also ask the Extraordinary General Meeting for an operation of a capital increase by incorporating reserves leading to the allocation of bonus shares for a maximum amount of 620 MMAD, as well as the harmonization of the articles of association with the terms of Law 19-20 amending and completing the Law 17-95 related to limited companies.

The brochure containing the 2021 financial statements, prepared under IAS/IFRS, and the notes to the financial statements, is published on the www.ir-bankofafrica.ma website.

CONSOLIDATED BUSINESS ACTIVITY

(MAD MILLIONS)

NET INCOME ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT COMPANY

December 2020 (Excluding donation): 1 368 (+47%)

December 2020 (Including donation): 738 (+172%)

December 2021: 2 007

Net income attributable to shareholders of the parent company rose by +172% year-on-year to MAD 2 billion and by +47% when restated for the impact from the COVID-19 donation.

NET BANKING INCOME

December 2020: 14 002

December 2021: 14 607 (+4%)

Consolidated net banking income grew by +4% year-on-year to MAD 14.6 billion, driven by the core business.

PARENT BUSINESS ACTIVITY

(MAD MILLIONS)

NET INCOME

December 2020 (Excluding donation): 1 354 (+11%)

December 2020 (Including donation): 724 (+107%)

December 2021: 1 501

Net income at BANK OF AFRICA S.A. rose by +107% year-on-year to MAD 1.5 billion, a record level for the Bank and by +11% when restated for the impact from the COVID-19 donation.

NET BANKING INCOME

December 2020: 6 301

December 2021: 6 907 (+10%)

Net banking income of the Bank in Morocco grew by +10% to MAD 6.9 billion versus MAD 6.3 billion in 2020.

FULL-YEAR FINANCIAL RESULTS SHARPLY HIGHER WITH PROFITS AT BANK OF AFRICA S.A. AT RECORD LEVELS

Strong earnings growth with net income attributable to shareholders of the parent company (excluding donation) up 47% at MAD 2 billion, and parent net income 11% ahead at MAD 1.5 billion, a record level for BANK OF AFRICA S.A. 

Performance back to pre-COVID-19 levels with net income attributable to shareholders of the parent company up 4% and parent net income 9% ahead versus 2019.

Moroccan business contributing 51% to net income attributable to shareholders of the parent company and international operations 49%, including 41% from Africa.

Strong commercial performance with parent net banking income up 10% and +4.3% on a consolidated basis to MAD 6.9 billion and MAD 14.6 billion respectively at 31 December 2021.

All business lines driving revenue growth, including the core business with net interest income up 5% on a consolidated basis and +6% at the parent level with fee income 6% higher on a consolidated basis and 7% ahead at the parent level.

Revenues well-diversified geographically with international operations continuing to contribute 50% to overall Group revenues at 31 December 2021; Africa now accounts for 46% of BANK OF AFRICA's consolidated net banking income.

Ongoing operational efficiency gains at the Group and Bank levels in 2021, as illustrated by the downward trend in the consolidated cost-to-income ratio in each of the past 4 financial years, from 59.1% in 2018 to 54.5% in 2021, an improvement of 4.6 percentage points and in the parent cost-to-income ratio, from 59.7% in 2018 to 52.8% in 2021, an improvement of almost 7 percentage points.

Improvement in the cost of risk (-15%) versus 2020 to MAD 2.9 billion, resulting in a cost-of-risk ratio of 1.5% in 2021 versus 1.8% in 2020.

Total assets up 4% to MAD 345 billion on a consolidated basis and 5.5% ahead to MAD 227 billion on a parent basis at 31 December 2021.

Strong momentum in the Group's commercial activity with customer loans (excluding resales) at Group level up 4% to MAD 182 billion and +5% to MAD 122 billion at BANK OF AFRICA S.A.

Customer deposits (excluding repurchases) up 6% to MAD 219 billion on a consolidated basis and +5% to MAD 141 billion at the parent level.

25 basis points gain in the Bank's share of the loan and deposit market to 12.73% and 13.24% respectively at 31 December 2021.

Impressive performance by BOA Holding, the Group's African subsidiary and second largest contributor to Group revenues and profits, with consolidated net banking income up 5% to EUR 604 million and net income attributable to shareholders of the parent company growing by 60% to EUR 105 million.

Positive commercial and financial performance at Salafin with overall production growing by 15.4% versus 31 December 2020 and net banking income 6.1% higher to MAD 389.1 million at 31 December 2021.

64.6% increase to MAD 3.4 billion, exclusive of taxes, in Maghrebail's production at 31 December 2021 with net income sharply higher (+54.2% year-on-year) at MAD 99.1 million.

Positive trend in BANK Of AFRICA Europe's main financial indicators with transaction volume from the trade finance business, domiciled within the Madrid-based subsidiary, 23% higher and net income up by 6% to almost EUR 11 million at 31 December 2021.

Decent performance by BANK OF AFRICA United Kingdom with net banking income up 26.6% to GBP 23.7 million and net income of GBP 5.2 million at 31 December 2021, a twofold rise compared to the level seen in 2019, with all business units contributing.

Significant growth by BANK OF AFRICA Shanghai Branch with strong commercial momentum because of the Group's Chinese branch office's participation in several commercial and promotional events.

DIGITAL SERVICES BOLSTERED, PROVIDING AN IMPROVED CUSTOMER EXPERIENCE

BMCE Direct and Agence Directe's services enhanced with new functionality, providing a simpler, more user-friendly, comprehensive, and secure customer experience, consistent with the Bank's ongoing digitisation strategy.

Crédit DABA, the new online loan application platform enhanced with an entirely digital subscription process.

Crédit Business Online platform for businesses, including small businesses, enhanced with a website that can be accessed and adapted to any device.

DABA Transfer, BMCE EuroServices' digital platform developed, the first mobile app in Morocco enabling customers to make online money transfers from Europe - from three countries and in three languages - French, Italian and Spanish.

BOOSTING FINANCING AND SUPPORT TO HELP DEVELOP THE NATION'S ENTREPRENEURIAL ECOSYSTEM

Strongly committed to supporting entrepreneurship as seen in the Bank's support for nearly 14,000 youngsters and would-be entrepreneurs in 2021: entrepreneurship awareness sessions organised for 13,000 youngsters and would-be entrepreneurs, training provided to 900 small businesses and around 50 start-ups incubated.

Effective partnerships formed with some of the Kingdom's main public institutions, including nearly a dozen of Regional Investment Centres, INDH platforms, local authorities and ANAPEC.

More than 13,600 DAMANE OXYGENE and DAMANE RELANCE applications processed since 2020, with a total of MAD 8 billion disbursed in the year ended 31 December 2021.

Ongoing support for the INTELAKA programme with more than 3,700 applications approved and with a total of MAD 628 million disbursed in the year ended 31 December 2021.

A variety of products launched for small and medium-sized enterprises, including the Istitmar programme, the Tatwir Croissance Verte programme, the Cap Bleu 2021 loan, Green Value Chain by BANK OF AFRICA, a new solution, and the latest version of the Cap Energie solution.

LEADERSHIP BOLSTERED IN CORPORATE SOCIAL RESPONSIBILITY, ENVIRONMENTAL RESPONSIBILITY AND POSITIVE IMPACT FINANCE

Ongoing development of BMCE Bank Foundation's Medersat.Com network with two state schools opened in Temara and one in Djibouti, 24 pre-school classrooms built, 8 schools renovated and refurbished, a Middle Section introduced in 48 schools, and 36 schools labelled 'Eco-Schools' under an agreement with the Mohammed VI Foundation for Environmental Protection.

MEDERSAT.COM ACADEMY distance learning centre inaugurated to provide ongoing teacher training in a variety of disciplines - languages, preschool education and new information and communication technologies.

BMCE Bank Foundation signs amendments to the special agreements to establish 100 preschool classes in three of the Kingdom's regions, thereby underlining its commitment to develop preschool education.

Sustainable financing bolstered with EUR 113 million of funding lines signed with the EBRD for energy efficiency and renewable energy projects - Green Economy financing facility, Cap Bleu, Green Value Chain, GCf GEff, Women in Business, Risk facility Sharing, and cooperation with a global textiles group to promote sustainable value chains.

Range of inclusive insurance products developed for different socio-professional categories, including Taamine Al Aazae, Taamine Al Abnae, Taamine Al Walidaine and Taamine Al ilaj, with simplified subscription terms and conditions, limited exemptions, and rapid pay-outs without binding clauses.

BANK OF AFRICA, first Moroccan Bank to endorse Women's Empowerment Principles, a partnership initiative of the United Nations Global Compact and UN Women, as a universal multi-business banking group comprising a variety of business lines.

Gender Diversity Corporate Charter signed to mark International Women's Day, developed by We4She within the framework of the Africa CEO Forum, underlining the Bank's commitment to join the African network for diversity.

Guide to best sustainable practices published in partnership with the Green for Growth Fund (GGF) and Apexagri for companies within the agri-food industry.

PROFILE

14 900 EMPLOYEES

32 COUNTRIES

2 000 POINTS OF SALE

6.6 MILLION CUSTOMERS

BANK OF AFRICA is one of Africa's main pan-African financial groups. With an extensive portfolio of brands and subsidiaries, BANK OF AFRICA has adopted a universal banking business model comprising a variety of business lines, including commercial banking, investment banking as well as specialised financial services such as leasing, factoring, consumer credit and participatory banking.

The corporate names of the Madrid and London subsidiaries have recently changed to BANK OF AFRICA EUROPE and BANK OF AFRICA UNITED KINGDOM respectively.

AWARDS AND DISTINCTIONS

BANK OF AFRICA named 'Best Bank in Morocco 2021' for the 9th time since 2000 by The Banker, a prestigious Financial Times Group publication.

BANK OF AFRICA named 'Best Trade Finance Bank in Morocco' by Global Trade Review as part of its 'GTR+MENA2021' annual review.

BANK OF AFRICA, first bank to be ISO 45001-certified in Morocco and on the African continent in the areas of occupational health, safety, and well-being, after a certification audit was carried out by Bureau Veritas Certification.

BANK OF AFRICA named 'Third Safest Bank in Africa in 2021' by Global Finance Magazine and ranked among the top three banks on the African continent.

BANK OF AFRICA named 'Top Performer CSR 2021' in a Moody's non-financial ratings survey and ranked 1st out of 90 banks in emerging markets, 2nd out of 852 emerging market companies (across all sectors) and 37th out of 4,963 companies rated worldwide.

BANK OF AFRICA an award-winner in the MENA region's Financial Services category for the 8th consecutive year at the 14th Arabia CSR Awards, for its leadership in corporate social responsibility and sustainability as well as for the high level of resilience shown in the face of the COVID-19 crisis.

BANK OF AFRICA wins the 'Outstanding Leadership in Sustainable Project Finance - Africa' award from Global Finance Magazine in the context of its Sustainable finance Awards 2021.

NET INCOME ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT COMPANY

AT 31 DECEMBER 2021 BY GEOGRAPHICAL REGION

2021

MOROCCO • 51%

SUB-SAHARAN AFRICA • 41%

EUROPE • 8%

2020

MOROCCO • 46%

SUB-SAHARAN AFRICA • 44%

EUROPE • 10%

RATINGS

MOODY'S

BA1,

NEGATIVE OUTLOOK

FITCH RATINGS

BB,

STABLE OUTLOOK

VIGEO.EIRIS

Non-financial rating

A+

FINANCIAL COMMUNICATION Website: ir-bankofafrica.ma - Tel: +212 522 462 810