Mixed results for Société Générale Maroc in the first half of 2024. The net banking income (NBI) increased by 1.74% on a consolidated basis to reach 2.82 billion DH, thanks to the good performance of the interest margin, commissions as well as the positive dynamics of all the bank’s business lines and subsidiaries. In social, revenues increased by 4.23% to 2.59 billion DH.
On the commercial level, outstanding customer loans reached 92.01 billion DH on a consolidated basis, down 2.44% compared to December 31, 2023. On a social level, they also decreased by 2.98% to 77 .71 billion. “This trend is explained by an exceptional base effect on credits of cash recorded at the end of 2023,” underlines the group on the occasion of the publication of its half-year results.
For their part, the deposits of the customers also recorded a decline compared to December 31, 2023. They stood at 86.01 billion DH on a consolidated basis (-1.45%) and 77.72 billion DH on a social basis (-3.63%) on the first half of 2024.
However, thanks to the positive evolution of the GNP and the control of general operating expenses, the gross operating income increased, year-on-year, by 4.86% in social terms to 1.40 billion DH and by 3.68% consolidated to 1.48 billion. Note that the operating ratio experienced an improvement in social terms of 134 basis points (bps) to stand at 46.8%. In consolidated terms, it also fell by 99 bps to 47.4%.
Despite these developments, the consolidated net profit fell by 14.47% over one year to 635 million DH. The social net income also fell by 13.11% to 623 million DH. “This decline is linked to the increase in the net risk charge, in a prudent approach to strengthening coverage rates,” specifies the group.
However, the financial fundamentals remain “healthy and solid” with consolidated equity amounting to 15.44 billion DH as of June 2024. “As such, the overall solvency ratio stands at 14.41%, the ratio Tier 1 at 13.49% exceeding the regulatory thresholds by 241 bps and 449 bps respectively,” explains the bank.
As a reminder, last April, the Société Générale group signed two sales contracts with the Saham groupsubject to the approval of the competent authorities, with a view to selling Société Générale Marocaine de Banques as well as its subsidiaries, and La Marocaine Vie. The transaction would be priced at 745 million euros. Processing the request for a new approval for the Moroccan General Banking Company (SGMB) is in its final phase.
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