Attijari Global Research (AGR) forecasts an upward readjustment of the share price of Attijariwafa bank (AWB) in the coming months, with profits expected to exceed the threshold of 10 billion dirhams (MMDH) by 2025.
Net banking income (NBI) showed an increase of 16.6%, while net profit, group share (RNPG) increased by 35.7%, reports AGR in its recent “Research report – Equity” bulletin.
These solid performances justify an upward revision of the growth forecasts for AWB during the period 2024-2026, specifies the same source, noting that these results exceed the expectations of AGR analysts for the third consecutive year, marking the strongest growth of GNP observed in ten years, reaching 17.02 billion dirhams) a performance supported by market activities which represent almost two thirds of this increase.
Read also: Morocco-France: Bpifrance and Attijariwafa bank strengthen their partnership
The growing adoption of digital platforms by customers leads to a continued decline in the operating ratio (COEX), which falls by more than 10 points in the space of 5 years to reach 35.5% in the first half of 2024.
Furthermore, the improvement in the bank’s risk indicators is confirmed after a significant provisioning effort in 2023 for the subsidiaries in Egypt and Cameroon. This favorable movement is explained by a stabilization of the macroeconomic framework in the main markets, with a cost of risk rate (CDR) falling by 12 basis points (Pbs) to 103 Pbs.
AGR’s expectations are based on the emergence of three favorable trends for the banking sector, characterized by a visible widening of the “spread” between credit growth and that of GDP, increased recourse to exchange risk hedging operations through businesses, and an accommodating monetary cycle in Morocco. Note that the group’s current capitalization only exceeds the average for the 2017-2019 period by 18%, while its RNPG could almost double by 2025.
With MAP
Morocco
