Bank Africa (a) Regulatory News (BOAA)

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BANK OF AFRICA

BMCE GROUP

HALF-YEAR RESULTS

30 JUNE 2022

FINANCIAL AND BUSINESS MOMENTUM MAINTAINED IN FIRST HALF 2022

BANK OF AFRICA - BMCE Group's Board of Directors, chaired by Mr Othman BENJELLOUN, met Friday 23 September 2022 at the Bank's head office in Casablanca. It reviewed the business activity of the Bank and of the Group for first half 2022 and drew up the financial statements for the period in question.

The first half 2022 financial report is published on the website www.ir-bankofafrica.ma.

CONSOLIDATED BUSINESS ACTIVITY (MAD MILLIONS)

NET INCOME ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT COMPANY

+6.2%

June 2021: 1 195

June 2022: 1 268

Net income attributable to shareholders of the parent company +6.2% to almost MAD 1.3 billion at 30 June 2022.

NET BANKING INCOME

+6.3%

June 2021: 7 295

June 2022: 7 754

The Group's net banking income +6.3% to MAD 7.8 billion at 30 June 2022 versus MAD 7.3 billion at 30 June 2021.

CUSTOMER LOANS

+2.7%

December 2021: 182 400

June 2022: 187 367

Consolidated loans, excluding resales, +2.7% to MAD 187.4 billion versus MAD 182.4 billion at 31 December 2021.

CUSTOMER DEPOSITS

+3.1%

December 2021: 218 973

June 2022: 225 697

The Group's customer deposits +3.1% to MAD 226 billion versus MAD 219 billion at 31 December 2021.

PARENT BUSINESS ACTIVITY (MAD MILLIONS)

NET INCOME

+4%

June 2022: 1 137

June 2021: 1 095

BANK OF AFRICA S.A.'s net income +4% year-on-year to MAD 1.14 billion at 30 June 2022.

NET BANKING INCOME

+1%

June 2021: 3 784

June 2022: 3 809

The Bank's net banking income up almost +1% to MAD 3.8 billion at 30 June 2022.

CUSTOMER LOANS

+4.7%

December 2021: 122 262

June 2022: 127 999

Strong growth of +4.7% in the Bank's customer loans to MAD 128 billion at 30 June 2022.

CUSTOMER DEPOSITS

+1.7%

December 2021: 139 292

June 2022: 141 620

Customer deposits in Morocco +1.9% to almost MAD 142 billion at 30 June 2022 versus MAD 139 billion at 31 December 2021.

ir-bankofafrica.ma

POSITIVE REVENUE AND PROFIT GROWTH

Consolidated net banking income +6.3% to MAD 7.7 billion at 30 June 2022, driven by positive growth across business lines with fee income +12% and net interest income +9%.

Parent company revenue up almost +1% to MAD 3.8 billion thanks to a solid performance by the core business with fee income +7% and net interest income +4% despite a -7% decline in income from market operations.

Parent company general operating expenses broadly unchanged year-on-year at MAD 1.8 billion, resulting in a cost-to-income ratio of 46.8% at 30 June 2022 versus 47.1% at 30 June 2021, an improvement of 0.3 percentage points.

The rise in general operating expenses at the consolidated level was contained at +2%, resulting in a cost-to-income ratio of 51.1% at 30 June 2022, an improvement of 2.3 percentage points compared to 30 June 2021.

Consolidated gross operating income +12% to MAD 3.8 billion compared to 30 June 2021 and +4% to MAD 2 billion at the parent level.

Consolidated cost of risk +8% year-on-year to MAD 1,384 million in 2022 and annualised cost of risk +1.3%, broadly unchanged compared to 2021.

Net income attributable to shareholders of the parent company +6.2% to MAD 1,268 million with net income at the parent level +4% to MAD 1,137 million.

BANK OF AFRICA Group's total assets +5.5% to MAD 364 billion.

Shareholders' equity bolstered in first half 2022 with MAD 1 billion of perpetual subordinated debt issued.

Strong business performance with consolidated customer loans, excluding resales, +2.7% to MAD 187.4 billion at 30 June 2022, driven by a 4.7% increase in lending by the Bank in Morocco.

BANK OF AFRICA's share of the overall loan market rises to 12.91% at 30 June 2022.

Consolidated customer deposits +3% to MAD 226 billion at 30 June 2022 versus MAD 219 billion at 31 December 2021.

Customer deposits at the parent level +1.7% to MAD 141.6 billion at 30 June 2022 resulting in a 13.23% share of the market at 30 June 2022.

PRODUCT RANGE ENHANCED IN SUPPORT OF CUSTOMERS

Closer ties with the Moroccan diaspora through a bespoke range of products and technical services, high value-added support-based financing facilities and increased assistance in customers' country of residence, on round trips and during their stay in Morocco.

BANK OF AFRICA has further raised its profile in the Young Professionals segment by launching a new and competitive range comprising an attractive package which includes mortgage and consumer loans to meet the basic needs of Young Professionals.

'YASSIR' POSEF programme launched in partnership with the Mohammed VI Foundation, enabling teachers to apply for an instant regulated and subsidised loan.

New instant regulated loan launched in partnership with the Caisse Marocaine des Retraites (CMR) for BANK OF AFRICA's retired customers with repayments debited at source from a CMR pension.

Participation by BANK OF AFRICA in the 3rd Property Caravan organised by the Mohammedia Foundation for Social Action by Magistrates and Legal Professionals.

Ongoing strategy to digitise BANK OF AFRICA's products and services by launching the latest version of the Agence Directe platform, offering an enhanced customer experience.

BANK OF AFRICA's commitment to payment systems inter-connection in Africa as a means of accelerating intra-African trade underlined at the 14th US-Africa Business Summit 2022.

Two agreements signed by BANK OF AFRICA for members of the Foundation for the Promotion of Social Action for the benefit of Civil Servants and Agents at the Ministry of Youth and Sport and members of the Association for Social Action at the National Agency for the Promotion of Employment and Skills (ANAPEC), enabling BANK OF AFRICA to extend its new civil service offer to all customers.

SANTE LEASE, a new finance product launched by the Group's Maghrebail subsidiary, enabling doctors and dentists to establish or develop their medical practice.

Partnership agreement signed between BTI Bank and Wafa Takaful, enabling the latter's products to be marketed across the BTI Bank network.

Fintech payment service launched as a result of a partnership between Damane Cash, a BANK OF AFRICA subsidiary specialising in payment solutions and Paysend, a UK-based fintech company. The venture is designed to simplify money transfers in Morocco and enable Moroccans with a bank account to carry out instant international transactions at discounted rates.

PROMISING PERFORMANCE BY THE GROUP'S SUBSIDIARIES

Strong performance by BOA Group in terms of revenue and profit growth with net banking income +9% and net income attributable to shareholders of the parent company +38%, driven primarily by the core business, particularly net interest income and fee income.

Salafin's net production +7.1% to MAD 648 million at 30 June 2022, primarily due to a sales reorganisation, regained business momentum and increasingly competitive financing deals. Net income +9% à MAD 48 million at 30 June 2022.

Maghrebail's production +12.2% to MAD 1,460 million at 30 June 2022 due to strong business momentum in every region in which the subsidiary is present. As result, Maghrebail is ranked 3rd within the industry with a 23.65% share of the market at 30 June 2022. Net income +16.5% to MAD 56.7 million at 30 June 2022 versus MAD 48.6 million at 30 June 2021.

Maroc Factoring's net banking income +12.7% to MAD 16 million at 30 June 2022 with net income +26% to MAD 1.87 million.

Strong performance by the Group's Madrid-based subsidiary with net income +43% compared to 30 June 2021 to EUR 6.8 million. This was due to strong business momentum by the trade finance business, as illustrated by a steep increase in foreign trade (+34%) and finex (+14%) transaction volumes at 30 June 2022.

GROUP'S ONGOING COMMITMENT TO A SUSTAINABLE ECONOMY

Ligne Bleue, BANK OF AFRICA's exclusive agreement with the AFD and the EIB signed in 2017, provides assistance and up to EUR 6 million of funding to manufacturing companies for projects such as water treatment plants.

BANK OF AFRICA continuing to market facilities launched in partnership with the EBRD such as the EUR 13 million Green Economy Financing Facility (GEFF II) and the EUR 10 million Green Value Chain (GVC).

BANK OF AFRICA appointed as founder-member of the African Business Leaders Coalition (ABLC), established in May 2022 by the United Nations Global Compact, to advance sustainable growth, prosperity, and development in Africa.

Funding provided to repower the Koudia El Baida wind farm in the Tangier-Tetouan region, Africa's oldest large-scale wind farm and Morocco's first independent renewable energy producer. At a cost of EUR 44 million, this investment is designed to double the wind farm's existing capacity to 100 MW.

BANK OF AFRICA's sustainable finance partnership with the World Environment Center (WEC), signed in March 2020, further bolstered with the visit of the United States Department of State to the Bank's head office in June. The partnership provides technical assistance to businesses, including access to the WEC's Virtual Tech Forum scheduled for November.

BANK OF AFRICA joins the Board of Directors of Cluster EnR, a transition accelerator and non-profit organisation, which brings together the entire renewable energy sector for the purpose of developing a competitive industrial sector capable of meeting national strategic goals and supporting green entrepreneurship.

Partnership agreement signed with the EBRD in social and green bonds and a round table organised on the theme of Positive Impact Finance in Africa. The Bank's expertise in trade finance and its commitment to sustainable finance was again recognised in 2021.

BMCE BANK FOUNDATION REAFFIRMS ITS COMMITMENT TO SOCIAL ISSUES

Further tribute paid to Dr Leïla MEZIAN BENJELLOUN, BMCE Bank Foundation's Chair, by the Bouabate Fez Association, with the former being awarded the Fez Gate Trophy and the title of 'Woman of the Year' in the Social Action category.

16 pre-school classrooms built and equipped in state schools in partnership with the Ministry of National Education ahead of the start of the 2022-23 academic year with 5 Medersat.Com network schools also renovated and refurbished.

6 new classrooms built and equipped by the BOA Foundation in the Yama Tahoua schools district in Niger.

Success for 390 or 79% of Medersat.com network school pupils from the 11th cohort sitting the high school diploma exam, including 244 girls (62.5% of female candidates), with 59% receiving a commendation, 28 of whom earning the highest distinction.

Participated in the Casablanca-Settat regional conferences organised by Casablanca's Hassan II University to discuss the ESRI PACTE 2030, a national plan for accelerating the transformation of the ecosystem of higher education, scientific research and innovation, which also enabled the Bank to share its experience and the Foundation's commitment to the education sector and to environmental causes.

AWARDS AND DISTINCTIONS

ISO 37001 certification of BANK OF AFRICA's anti-bribery management system successfully renewed following a comprehensive audit by EuroCompliance, an accredited certification firm.

BMCE Capital Gestion sees its services commitments and ISO 9001:2015 certifications successfully renewed following an external audit by Bureau Veritas Morocco.

BMCE Capital Gestion successfully complying with the ISAE 3402 Type II Standard published by the International Auditing and Assurance Standards Board (IAASB) following an audit by Mazars.

BMCE Capital Solutions' securities operation obtains ISAE 3402 Type II certification, attesting to the reliability and quality of BMCE Capital Solutions' internal control system.

BANK OF AFRICA named Most Active Issuing Bank in Morocco in 2021 by the EBRD in recognition of the productive partnership forged between the two institutions in foreign trade financing and BANK OF AFRICA's ongoing efforts at offering its customers appropriate short-term foreign currency financing.

BANK OF AFRICA becomes the first Moroccan Bank to endorse Women's Empowerment Principles (WEP), a partnership initiative of the United Nations Global Compact and UN Women.

Gender Diversity Corporate Charter signed to mark International Women's Day, underlining the Bank's commitment to joining the African network for diversity.

BANK OF AFRICA receives the award of Best Annual Sustainability Report within the financial services industry for the 2nd consecutive year from the Casablanca Stock Exchange, with a score of 97%.

Eurafric Information, the Group's IT subsidiary, named 'Top Employer' for the 3rd consecutive year by Top Employers Institute, a prestigious international organisation.

Eurafric Information officially approved as an Electronic Certification Service Provider by the General Directorate for Information Systems Security (DGSSI), which reports to the National Defence Administration.

Eurafric Information receives the European Identity and Cloud (EIC) 2022 award in the Identity Fabrics & IDaaS category from KuppingerCole Analysts AG, a consulting firm.

PROFILE

15,000 EMPLOYEES

32 COUNTRIES

2,000 POINTS OF SALE

6.6 MILLION CUSTOMERS

NET INCOME ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT COMPANY

AT 30 JUNE 2022 BY GEOGRAPHICAL REGION

MOROCCO • 54%

SUB-SAHARAN AFRICA • 38%

EUROPE • 8%

RATINGS

MOODY'S

BA1,

STABLE OUTLOOK

Fitch Ratings

BB,

STABLE OUTLOOK

V.E

Non-financial rating

A+

BANK OF AFRICA is one of Africa's main pan-African financial groups. With an extensive portfolio of brands and subsidiaries, BANK OF AFRICA is a universal banking group with 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.

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