Final Results

STRATEGIC DEVELOPMENT PLAN 2016-2020 SUCCESSFULLY LAUNCHED

BMCE Bank's Board of Directors, chaired by Mr Othman BENJELLOUN, met on Monday 27 March 2017 at the Bank's head office in Casablanca. It examined the business activity of the Bank and of the Group for the financial year ended 31 December 2016 and drew up the financial statements for the financial year in question.

The Board of Directors will propose to the Annual General Meeting of Shareholders a dividend payment of 5 dirhams per share, to be paid in July 2017.

Similarly, the Board of Directors will also propose to the said Annual General Meeting the appointment of a new Director, Mrs Hadeel IBRAHIM, Founding Executive Director of Mo Ibrahim Foundation, which should give greater independence to the Bank's Board of Directors.

The 2016 financial statements prepared under IAS/IFRS are published on the bank's website www.bmcebank.ma

CONSOLIDATED FINANCIAL STATEMENTS

+10% Net banking income MAD 13 billion (1.2 Bn€, 1.3 Bn$)

+15% Gross operating income MAD 5.6 billion (527 M€, 557 M$)

+4% Net income attributable to shareholders of the parent company MAD 2 billion (191 M€, 202 M$)

PARENT FINANCIAL STATEMENTS

+14% Net banking income MAD 6.1 billion (576 M€, 609 M$)

+5% Gross operating income MAD 2.7 billion (253 M€, 267 M$)

+2% Net income MAD 1.3 billion (124 M€, 131 M$)

§ Contributor to the Sino-Moroccan alliance with a role of investor and banker in the context of the launch by His Majesty the King of the "Mohammed VI Tangier-Tech City".

§ Strengthening the diversity of profiles of the Group's Board of Directors.

§ The initial results of BMCE Bank Group's Strategic Development Plan 2016-2020 are encouraging.

§ A convincing commercial performance, as illustrated by market share gains in loans and deposits.

VERY ENCOURAGING PERFORMANCE IN THE FIRST YEAR OF THE PLAN

CONSOLIDATED RESULTS: NET INCOME BREACHES THE MAD 2 BILLION MARK FOR THE FIRST TIME

§ Net income attributable to shareholders of the parent company rose by 4% to breach the MAD 2 billion (191 M€, 202 M$) mark for the first time, with contributions from each of the Group's business lines broadly unchanged.

§ Net banking income rose by 10% year-on-year to MAD 13 billion (1.2 Bn€, 1.3 Bn$) thanks to:

§ A healthy performance by the core banking business with net interest income and fee income both up 8%.

§ Market operations, registered 86% growth primarily due to the performance of the fixed income portfolio against a backdrop of falling interest rates.

§ The net interest income and net fee income Group's accounting for 87% of consolidated net banking income, and a contribution of 9% of the market activities.

§ Improved operational efficiency with cost-to-income ratio contracted by 1.9 percentage point to 56.8% in 2016 with General expenses rising by 6% to MAD 7.4 billion (692 M€, 732 M$), less rapidly than growth in net banking income (+10%).

§ Gross operating income rose by 15% to MAD 5.6 billion (527 M€, 557 M$) in 2016 versus MAD 4.8 billion (448 M€, 542 M$) in 2015.

§ The cost of risk increased by 12% to MAD 1.6 billion (152 M€, 160 M$) in 2016 versus MAD 1.4 billion (134 M€, 145 M$) in 2015, resulting in a cost of risk ratio of 0.91%, one of the best within the banking industry.

§ Sustained provisioning effort improving the Group's loan-loss provision coverage ratio to 64% in 2016 versus 59% in 2015.

§ The Group's financial position was bolstered with shareholders' equity growing by 7% to MAD 18.3 billion (1.7 Bn€, 1.8 Bn$) in 2016 versus MAD 17.0 billion in 2015.

§ ROE unchanged at a satisfactory 12.6% in 2016.

§ Consolidated total assets rose by 9.5% year-on-year from MAD 279.4 billion (26 Bn€, 28 Bn$) to MAD 306.0 billion (29 Bn€, 30 Bn$) at 31 December 2016, breaching the MAD 300 billion mark for the first time.

§ BMCE Bank of Africa, a pan-African banking group, is now one of the leading banking institutions in Africa in terms of coverage with operations in some 20 countries and in 4 of the continent's 5 main economic regions.

§ Growing contribution from the Group's African subsidiaries which accounted for 32% of net income attributable to shareholders of the parent company and 43% of net banking income in 2016.

PARENT FINANCIAL STATEMENTS: SHARP IMPROVEMENT IN THE RISK PROFILE

§ Net income rose by 2% to MAD 1.3 billion in 2016 (124 M€, 131 M$).

§ Net banking income rose by 14% to MAD 6.1 billion (576 M€, 609 M$) in 2016, driven by a 68% increase in income from market operations, primarily due to the performance of the fixed income portfolio.

§ Healthy performance from the core business with net fee income up 8.5% and net interest income up by almost 5%.

§ Parent general operating expenses rose by 7% to MAD 3.5 billion (328 M€, 346 M$) with 26 new branch openings. As a result, the branch network numbered 723 branches in total at 31 December 2016.

§ The cost-to-income ratio improved by 3.8 points to 56.9% in 2016 versus 60.7% in 2015.

§ Gross operating income grew by 5% to MAD 2.7 billion in 2016 (253 M€, 267 M$).

§ Sound management and enhanced steering commitments :

§ Parent cost of risk fell by 14% to MAD 821 million (77 M€, 81 M$) in 2016 versus MAD 955 million in 2015 (89 M€, 96 M$).

§ The non-performing loan ratio declined from 6.59% in 2015 to 6.46% in 2016, below the industry average (excluding BMCE Bank), which deteriorated from 7.66% to 8.05%.

§ The NPL coverage ratio reinforced to 72.5% versus an average of 68.5% for the banking industry.

§ Total assets rose by 9.6% to MAD 205.2 billion (19 Bn€, 20 Bn$) at 31 December 2016, breaching the MAD 200 billion mark for the first time.

§ Customer deposits grew by 8.1% to MAD 122.2 billion (11 Bn€, 12 Bn$) in 2016, versus +3.9% at industry level, resulting in a market share of 14.53%, up 48 basis points.

§ Bank loans rose by 9.7% in 2016, versus +4.0% at industry level, to MAD 118.6 billion (11 Bn€, 12 Bn$), improving the Bank's share of the customer loan market share by 66 basis points to 14.94% in 2016.

Forthcoming Meeting

Thursday 30 March 2017

at 10:00

Meeting with Analysts and the Press:

BMCE Bank of Africa Group's Annual Results 2016

BMCE Bank Group's consolidated financial statements (MAD M)

Net income attributable to shareholders of the parent company +4%

Net banking income +10%

Total assets +9%

Net income attributable to shareholders of the parent company by geographical region at 31 December 2016

Morocco 60%

Africa 30%

Europe 10%

AN INNOVATIVE AND SUSTAINABLY COMMITTED BANK

PERSONAL AND PROFESSIONAL BANKING - SME AND YOUTH SEGMENTS' DEVELOPMENT, A STRATEGIC ORIENTATION

§ Solid and balanced growth with consumer loans 4.4% ahead to MAD 9.7 billion (910 M€, 962 M$) and property loans up 5.8% to MAD 28 billion (2.6 Bn€, 2.8 Bn$), while customer deposits grew by 8% to MAD 88.5 billion (8.3 Bn€, 8.8 Bn$).

§ Strong positioning on the Youth segment with major equipment developments thanks to a dedicated and diversified product offering (Enseignement +, Enseignement + Complémentaire, Crédits Etudes, Packs Jeunes Campus, etc.).

§ New products launched such as BMCE Asset Facility, a leveraged loan facility, in conjunction with Salafin - a credit facility for customers with a securities portfolio that may be used as collateral to raise capital.

§ Digital banking range enhanced with the introduction of new functionality for BMCE Direct and ATMs e.g. invoice payment, online meeting scheduling.

§ The payment terminals pool saw the introduction of mobile points of sale (MPOS). These are mobile devices connected via Bluetooth to the retailer's smartphone and used in situations requiring payment on delivery.

§ Market share gains in e-commerce payments to 16.25% in 2016 versus 15.87% the previous year.

§ The bank-insurance penetration ratio was unchanged at 36.06%, while the assistance business registered 30% year-on-year growth in revenue.

§ Launching, as part of the Bank's strategy of developing the Banking for Professionals and Small Businesses segment, of major projects: (ii) 'Entrepreneur access: small business development project' and (ii) 'Auto-entrepreneur status'.

§ A customised training programme - Business Edge - developed by the IFC, was introduced to help entrepreneurs develop skills in a number of areas.

§ The Bank's share of the deposit market rose for the 3rd consecutive year, up 28 basis points compared to 2015 to 10.63%, driven by an 8.2% year-on-year rise in deposits from Moroccans living abroad to MAD 18.3 billion (1.7 Bn€, 1.8 Bn$).

§ Expansion of the branch network with 26 new branch openings in 2016, taking the total number of Personal and retail branches to 690.

CORPORATE BANKING: GENUINE SALES CLOUT

§ Significant growth +16.4% in Corporate Banking deposits to MAD 32.2 billion (3.0 Bn€, 3.2 Bn$) in 2016 versus -1% at industry level.

§ +13.2% growth in Corporate Banking loans to MAD 70.9 billion (6.7 Bn€, 7.0 Bn$) in 2016 versus MAD 63.1 billion (5.9 Bn€, 6.4 Bn$) versus +4.3% at industry level.

§ +12% increase of investment loans, thanks to a commercial approach geared towards high potential sectors.

§ +14.4% growth in import flows and +12.8% in export flows outperforming the industry levels growing respectively at 9.5% and 2.5%.

§ As part of its policy of assisting and advising SMEs, two new concepts were introduced: the Centre for Expertise and Entrepreneurship for Small Businesses and Les Rendez-Vous de l'Enterprise and innovation in new adapted solutions.

§ A second, EUR 35 million credit facility contract was signed with Morocco Sustainable Energy Financial Facility (MorSEFF) after the success of the first finance facility.

§ BMCE Bank awarded the prize for the Best Wind Farm Project in 2015 by Dubai-based IJGlobal for its structuring of this large-scale project and the prize for the Best Project Finance Project 2015 by London-based EMEA Finance.

INVESTMENT BANKING: A VALUE-ACCRETIVE STRATEGY

§ 5% increase in volume on BMCE Capital Markets' BMCE FX-Direct platform to MAD 19.6 billion (1.8 Bn€, 1.9 Bn$) in 2016 versus MAD 18.7 billion (1.7 Bn€, 1.9 Bn$) in 2015 with new functionality introduced and trading in two new currency pairs added, the Russian Ruble and the Chinese Yuan.

§ BMCE Capital Bourse's trading volume rose sharply +43.5% to MAD 15.5 billion (1.4 Bn€, 1.5 Bn$) versus MAD 10.8 billion (1.0 Bn€, 1.1 Bn$) in 2015. As a result, its market share rose to 15.4% versus 14% the previous year.

§ BMCE Capital Gestion saw its assets under management rise by 4% to a new record of MAD 55.5 billion (5.2 Bn€, 5.5 Bn$). It is now ranked second within the industry with a market share of 15%. The asset management subsidiary enhanced its product range with the launch of BMCE Capital Titrisation, a new specialist unit.

§ In 2016, BMCE Capital Gestion Privée's new institutional website went online while the 'BKGP Direct' platform and mobile application were launched.

§ BMCE Capital Gestion Privée became the first institution in Morocco to obtain ISO 9001:2015 certification for its wealth management operations.

§ BMCE Capital Titres' market share was unchanged at 26%. Assets under custody continued to trend higher to MAD 99 billion (9.3 Bn€, 9.8 Bn$) at 31 December 2016, an increase of 10% compared to 31 December 2015.

§ Axis Capital, BMCE Capital's Tunisian subsidiary, was renamed BMCE Capital Tunisie after buying out the remaining minority shareholders.

SPECIALISED FINANCIAL SERVICES: AN EFFICIENT SYNERGY

MAGHREBAIL

§ Maghrebail's net outstandings rose by 7.6% to MAD 10.9 billion (1.0 Bn€, 1.1 Bn$)in 2016, resulting in market share gains of 100 basis points to 25.2% at 31 December 2016 versus 24.4% in 2015. Maghrebail is now the 2nd player in the industry.

§ Parent net income increased significantly +35.3% to MAD 87 million (8.2 M€, 8.6 M$), driven primarily by a steep increase in net revenue which rose by 145% to MAD 388.8 million (36.5 M€, 38.6 M$).

SALAFIN

§ Salafin saw its net banking income grow by 4.7% to MAD 371 million (34.8 M€, 36.8 M$). Growth was driven by an 11.7% increase in net interest income from its lending business and a 6.3% rise in net fee income.

§ Parent net income rise by 10.6% to MAD 138.5 million (13 M€, 13.7 M$), resulting in an ROE of as high as 21.6%.

MAROC FACTORING

§ The Convergence Programme was launched in conjunction with the parent company regarding the following: (i) risk management, (ii) risk control, (iii) compliance and (iv) information systems.

§ Net income declined by a modest 2% to MAD 15.1 million (1.4 M€, 1.5 M$) in 2016.

RM EXPERTS

§ RM Experts continued to implement its portfolio diversification strategy, supported by good command of recovery processes, and well-developed information systems, enabling information to be processed rapidly and accurately and ensuring that customers' needs are met.

§ Good performance with recoveries totalling MAD 406 million (38.1 M€, 40.3 M$) and write-backs up 17% to MAD 295 million (27.7 M€, 29.3 M$).

BMCE BANK'S OVERSEAS OPERATIONS: GEOGRAPHICAL DIVERSIFICATION PROFITABLE

BANK OF AFRICA GROUP

§ Bank Of Africa Group's net income rose significantly +18.5% to EUR 113.3 million (119.7 M$) versus EUR 95.6 million (101 M$) in 2015.

§ Net banking income increased by 6.6% to EUR 469 million (495 M$) in 2016, versus EUR 440 million (465 M$) in 2015.

§ General operating expenses were contained, resulting in a modest improvement in the cost-to-income ratio at 61.4% in 2016 versus 61.7% in 2015.

§ The Bank continued to develop its core banking business by: (i) opening more than 453,000 new accounts, taking the total number of accounts to just short of 3.1 million (+17%), (ii) opening 45 new branches, taking the total number of branches to 552 and (iii) recruiting 111 new staff, taking the total number of persons employed by the Group to 6,031.

§ Consolidated deposits rose by 7% to EUR 5 billion (5.3 Bn $) and loans increased by 9% to EUR 3.8 billion (4 Bn $).

LA CONGOLAISE DE BANQUE

§ Pursuit of market share gains in (i) deposits, which rose by 0.12p% to 13.97% and (ii) loans, which grew by 0.29p% to 14.90% between 2015 and 2016.

§ Operating performance was more than satisfactory with net banking income up 5% and gross operating income 17% ahead.

BANQUE DE DEVELOPPEMENT DU MALI

§ Commercial performance was significant in 2016 with loans growing by 22% and deposits by 14%.

§ Net banking income rose by 13.6% to EUR 55 million (58.1 M$) in 2016.

BBI LONDRES AND PARIS

§ Net banking income rose significantly +27.3% to GBP 20.6 million in 2016. The average annual growth rate for the period 2014-2016 was 25.5% despite the impact from the Federal Reserve's interest rate hike on funding costs.

§ Net income rose by 10.2% to GBP 8.6 million in 2016 versus GBP 7.8 million in 2015, that to say an ROE of 14.1%.

BBI MADRID

§ Results were positive with Trade Finance and Correspondent Banking volumes sharply higher due to buoyant sales and strong intra-Group synergies.

§ BBI Madrid bolstered its shareholders' equity with a EUR 15 rights issue via BIH Holding as part of the company's ongoing development.

CORPORATE SOCIAL RESPONSIBILITY:

A KEY PLAYER OF THE COP 22

§ A new educational and organisational system implemented in Medersat.com network schools in the wake of the 2014 audit.

§ Standardised school textbooks introduced, selected on the basis of their suitability and a standardised school timetable adopted across the Medersat.com school network.

§ Educational supervision given a boost to ensure that the functioning of the schools network is strictly monitored and an internal system introduced to regularly assess pupils' learning outcomes, and used to analyse, share and classify network schools by order of excellence.

§ BMCE Bank of Africa became the first Moroccan bank to issue green bonds by public offering to help finance eco-responsible projects at home and abroad and support private and public sector initiatives aimed at preserving natural resources.

§ EUR 20 million credit facility agreement signed with the EIB and FMO, as an adjunct to the COP22 conference, to help finance Morocco's circular economy in solid waste collection, recycling and recovery.

§ First Moroccan bank to sign up to the United Nations Global Compact, underlining its commitment and support for the ten principles relating to human rights, labour standards, environmental protection and anti-corruption.

§ A commitment to climate action by supporting the 'Mainstreaming Climate Action within Financial Institutions' initiative in conjunction with the EIB, the AfDB, the EBRD, HSBC, Yes Bank and others financial institutions.

§ Signature, in partnership with the AFD & the EIB, of a MOU for the setting up of a first line in Africa specific to the financing of the Adaptation to Climate Change, of an amount of 20 M €.

§ Organization of the Green Banking in Africa conference, in partnership with the EBRD, bringing together leading international players in the field of green finance.

§ The second highly successful African Entrepreneurship Award (AEA) saw BMCE Bank award prizes to 11 projects from 9 countries. Since its launch in 2015, the AEA Programme has attracted interest from almost 7,000 projects from 104 countries including 54 in Africa. It has received the support of 220 partners/mentors from 36 different nationalities.

CERTIFICATIONS & DISTINCTIONS:

A DISTINGUISHED GROUP

§ Top Performer, CSR Morocco', awarded by Vigeo Eiris, a non-financial ratings agency, for the 4th consecutive year in the 'Environment' category.

§ BMCE Bank of Africa BMCE Bank Of Africa included in the Vigeo Eiris Emerging 70 Index specialising in emerging countries in recognition of best practice in CSR.

§ BMCE Bank Of Africa an award winner for the 3rd consecutive year at the CSR Arabia Awards 2016.

§ First bank in the MENA region to obtain ISO 50001 certification for its Energy Management System.

§ First Moroccan bank and the second in Africa to be awarded HEQ certification from Cerway International Certification for the new BMCE Bank Of Africa Academy head office - design and implementation phases.