The BCP Group maintains its solid position in a changing economic environment, through prudent management and an ability to seize growth opportunities in a context of recovery in Morocco.
In a global economic context characterized by rising rates and deteriorating risk levels, the Banque Centrale Populaire (BCP) Group confirms the solidity of its fundamentals during the first nine months of 2023. The mobilization of its resources has been key to navigating this uncertain environment, marked by decelerating global inflationary pressures. Morocco’s economic dynamics have evolved towards a recovery phase, with a notable improvement in economic growth, driven in particular by the rebound in agricultural added value.
This favorable situation has enabled the BCP Group to consolidate its positions despite the current challenges. The group’s outstanding consolidated gross loans recorded a slight decrease of 1.4%, reaching 303.4 billion dirhams (billion dirhams).
At the same time, consolidated deposits stabilized at MAD 367.5 billion, reflecting customers’ confidence in the group’s financial stability. The group’s net banking income reached 17.7 billion at the end of September 2023, reflecting a significant improvement in the interest margin and the commission margin, increasing by 6.7% and 5.2% respectively. This performance is also attributable to the continued recovery in the results of market activities.
-However, as part of a prudent provisioning policy, the group’s cost of risk increased by 14.6%, reaching MAD 3.3 billion. This increase is explained by the hedging of the sovereign risk of certain countries where the group is present, in the face of the deterioration of their economic and political environment.
-For their part, general operating expenses increased by 7.1% to MAD 8.2 billion, including the group’s contribution to the Special Fund for managing the effects of the Al Haouz earthquake. Despite these additional charges, the consolidated net profit of the BCP group stands at MAD 4.2 billion, demonstrating the group’s ability to maintain solid profitability.
In a recent analysis, the American rating agency Fitch Ratings highlighted the significant recovery in the profitability of Moroccan banks in the first half of 2023. The overall net income reaching record levels, supported by positive operating margins, is a positive indicator of the sector’s resilience. Although high impairment charges limited further improvement, Fitch Ratings forecasts a positive trend for the second half of 2023 and full year 2024, driven by rising interest rates and loan portfolio growth.
Sanae Raqui / ECO Inspirations
