Crédit du Maroc’s consolidated results as of June 30, 2022 confirm the banking group’s sustained commercial momentum and results in continuous growth with net income group share amounting to 324.7 million dirhams, up 16.9% compared to compared to the first half of 2021.
Chaired by Michel Le Masson, the Crédit du Maroc supervisory board met on Friday July 29, 2022 to examine the activity and the accounts closed on June 30, 2022 by the executive board.
At the end of June 2022, consolidated net banking income amounted to more than 1.28 billion dirhams, up 6.5% compared to the first half of 2021. The net interest margin increased by 4.1 % to 990.7 million dirhams benefiting, in particular, from the increase in loans and the continued optimization of the cost of collection, indicates the banking group in a press release.
The margin on commissions increased by 2.7% to 213.6 million dirhams thanks to the good performance of international activities and cash management. Income from market transactions rose by 36.5% to 130.7 million dirhams, benefiting from the performance of foreign exchange activity. The subsidiaries of Crédit du Maroc generate, for their part, an overall NBI of 92.3 million dirhams in the first half of 2022, down 6% compared to the same period of 2021, underlines Crédit du Maroc.
Improved financial results
Net income, Crédit du Maroc group share, came to 324.7 million dirhams, up 16.9% compared to the first half of 2021, benefiting from good commercial momentum and a favorable change in the cost of risk.
For the first half of 2022, consolidated equity stands at 6.89 billion dirhams. Reflecting the financial solidity of Crédit du Maroc, the overall solvency ratio stands at 14.81%, the Core Tier 1 ratio at 12.18% and the LCR liquidity ratio at 124.1%. Crédit du Maroc’s debt amounted to 1,578.9 million dirhams, up 4.0% compared to the first half of 2021, the bank said.
Gross operating income increased by 6.6% to 591.4 million dirhams, taking into account the 6.4% increase in general operating expenses, in line with the 8.6% increase in induced depreciation by the continuation of the investments deployed by Crédit du Maroc under the aegis of its Tajdid 2022 business plan. The cost/income ratio is 54% identical to that of the first half of 2021.
At the end of June 2022, Crédit du Maroc confirms, in particular, its role of financier and support for the economic development of the country with customer jobs increasing by 4.7% over one year to reach more than 46.9 billion dirhams. This growth was stimulated by short-term loans undertaken in an economic context of higher supply costs and a wait-and-see attitude for investment projects.
Outstanding loans to individuals increased by 2.6% to 19,674 million dirhams, supported by the 3.7% increase in housing loans, which offset the 2.1% drop in consumer loans. On the corporate market, short-term loans increased by 24.2%. For their part, equipment loans and leasing rose by 0.9%, thus showing resilience in the face of an unfavorable economic situation.
Improved cost of risk
The consolidated cost of risk fell by 84.2% to 10.5 million dirhams. This change is explained by a controlled and anticipated loss experience, coupled with the statistical update of the calculation parameters generating a favorable impact on the cost of risk, the group specifies in its press release.
As part of its prudent and anticipatory risk management policy, Crédit du Maroc posted a coverage rate of 87.1% at the end of June 2022. Non-performing loans continued their downward trend with a decline of 4.5% to 3,712 million dirhams at the end of June 2022. Thus, the rate of doubtful and disputed debts was reduced to 7.9% at the end of June 2022 once morest 8.7% a year earlier.
At the level of Crédit du Maroc’s corporate accounts, net banking income amounted to more than 1.25 billion dirhams, up 7.4% compared to the first half of 2021, gross operating income increased by 11, 6% to 603.5 million dirhams, it includes general operating expenses of 693.4 million dirhams, up 8.7%.
The company’s net income amounted to 336.1 million dirhams, down 13.6% compared to the end of June 2021, taking into account a cost of risk of 70.9 million dirhams once morest -27.6 million dirhams a year earlier, under the effect of an exceptional recovery in 2021.
Given the decision of Crédit du Maroc Capital to cease its activity, the Moroccan Capital Market Authority, in view of the request for withdrawal of authorization made by Crédit du Maroc Capital on February 14, 2022, pronounced on July 26, 2022 the withdrawal of approval of the brokerage firm Crédit du Maroc Capital, indicates the banking group.
