◆ All the listed banks show an increase in loans and collections in the first half of the year.
◆ Loans granted to large groups and state guarantee products have boosted loan production.
By Y. Seddik
The health crisis has given Moroccan banks a hard time. A crisis that adds to the multiple constraints facing the sector: persistently low interest rates, sluggish growth and a host of regulatory requirements. However, they manage to succeed, at least on the commercial side.
In this first part of the year, the six listed banks generated higher revenues than last year, distributed more loans and collected more deposits. For the leading bank by capitalization, Attijariwafa bank, loans and savings collected amounted to DH 330.2 billion (+ 4%) and DH 490.1 billion (+ 5.9%) respectively on a consolidated.
Since the start of the crisis, the bank has supported more than 19,500 companies, mostly small businesses, through the distribution of 25 billion DH, notes the bank in its financial communication for the first half of the year.
The boost from the State via its products guaranteed to companies (Damane Oxygène, Damane Relance and Relance TPE) has indeed enabled banks to improve their loan production during this delicate period. According to monetary statistics for the month of June, the outstanding amount of cash loans increased by 10.4% to 206 billion DH.
At BCP, the Group’s deposits continued to strengthen by 5.7% to stand at 327 billion DH, while loans strengthened by 1% compared to December 31, 2019, to 261 billion DH . We note that the bank generated net banking income of MAD 10 billion, an improvement of 13.9%, driven in particular by the combined effect of the change in scope following the integration of new African subsidiaries acquired in Q4-2019. Excluding the scope effect, net banking income was 6%.
Quasi-stagnation of deposits for BoA
As for Bank of Africa, there is a report of a commercial strengthening with customer loans up 7.9% for the bank in Morocco and 4.8% for the Group at the end of 2020. Excluding Resales , customer loans are up 5% to 108.6 billion DH in social and 2.9% to 178.9 billion DH in consolidated.
Consolidated customer deposits are virtually stagnant at 205 billion DH against a slight drop of 1% of the bank’s deposits in Morocco to 133 billion DH at the end of June 2020. In the first half of the year, social NBI increased by 3 , 4% to 3.6 billion DH.
In consolidated terms, it is stable at MAD 7 billion. For CIH Bank, whose cumulative NBI at the end of June 2020 jumped 14.7% to MAD 1.13 billion, the commercial performances are there. On a consolidated basis, customer deposits stood at MAD 48.4 billion at the end of 2020, up 8.6% compared to the end of 2019.
Customer loans were 58.0 billion DH at the end of June 2020, up 9.2% compared to the end of 2019. On a social basis, customer deposits were 45.4 billion DH, an improvement of 9. 7% compared to December 31, 2019. Customer loans stood at MAD 48.2 billion at the end of June 2020, up 10.6% compared to the end of 2019. We do not do less at BMCI, which has achieved a consolidated NBI of 1.55 billion DH at the end of June 2020.
Consolidated loans by cash to customers reached 55.7 billion DH at the end of June 2020 against 54.9 billion DH at December 31, 2019, an increase of 1.4%, mainly due to the favorable evolution of loans cash.
Consolidated customer deposits recorded an increase of 0.8%, reaching 45.4 billion DH at the end of June 2020 against 45 billion DH at December 31, 2019, with an improvement in the structure of resources in favor of deposits on sight, which represented 74.1% at the end of June 2020 against 72.5% at the end of December 2019.
The cost of risk is soaring!
According to a research note from Attijari Global Research, the analysis of press releases from listed banks relating to the second quarter of 2020 shows a half-year increase in customer loans of + 5.4%, driven by cash loans and equipment.
A level of growth 170 basis points higher than the average observed over the period 2015-2019, i.e. 3.7%. The continued development of credit activity in an unprecedented context of the health crisis is significantly reflected in expectations of risk relating to loans, analysts at AGR noted.
And to add: “By listing the listed banks having published the cost of risk in Q2-20, we note a semi-annual increase of 132%”. This significant increase in the cost of risk in 2020 is justified by the lack of visibility on the process of taking over the various sectors, and this in a context where bank management would adopt conservative provisioning rules.
The half-year evolution of the NBI of listed banks was partly supported by the good performance of the results of market activities. The latter benefited from the technical appreciation of the banks’ bond portfolio due to the central bank’s key rate cut by 50 basis points to 1.5% in June 2020.
CDM: sight resources boost deposits
Customer resources appreciated by 4.9% compared to June 2019, to 44.01 billion DH. This performance is mainly driven by on-sight resources, which increased from 10.2% to 29.91 billion DH. Excluding term deposits, down 13.1%, Crédit du Maroc’s balance sheet inflows increased by 6.5%. Customer jobs, meanwhile, recorded an increase of 3.8% to 43.8 billion DH compared to the end of June 2019. We note that since their establishment, the mechanisms “Relance TPE” and “Damane Relaunch ”benefited no less than 15,183 companies, for a total of 22.4 billion DH of loans having benefited from these exceptional guarantees, that is to say a total amount of commitments amounting to 19.7 billion DH