London, October 24, 2011 (MAP)
The Moroccan banking sector continues to post healthy growth in a stark contrast to the struggles of its northern neighbours, says Oxford Business Group (OBG), the global publishing, research and consultancy firm, in an analysis on the results and prospects of Morocco’s financial sector.
“Having recorded significant increases in profit in 2010 and the first half of 2011, (…) the Moroccan banking sector continues to post healthy growth in a stark contrast to the struggles of its northern neighbours,” notes the OBG in analysis received by MAP-London.
“While the eurozone struggles with the debt crisis, the kingdom’s largest banks – many of who have established a sizeable international presence in recent years – look set to continue their encouraging trajectory over the remainder of the year,” points out the analysis entitled “Morocco: Raising the stakes.”
It adds that “in July the IMF, in the concluding statement of its 2011 Article IV consultation for Morocco, noted that assets in the banking sector now exceed 120% of GDP.”
“In 2010 aggregate net profits in the banking sector grew by 5.5% to MD9.7bn (€837m) (…) and 2011 is also shaping up as a profitable year,” according to the same source.
To further boost turnover and profits, banks are increasingly competing for the lucrative business of Moroccans living in Western Europe, the OBG says, adding that “Spain accounts for around 10% of remittances from Moroccans living in Europe to their families back home, behind France’s 41%.”
Remittances, the think-tank notes, which are the country’ s second-most important source of foreign exchange after tourism, have been increasing at an average rate of around 8% a year since 2003 and grew to MD26.7bn (€2.3bn) in the first six months of 2011, up 7.1% on the same period the previous year.
It adds that “deposits held in Morocco by Europe-based immigrants stood at MD127bn (€10.96bn) in 2010, or just under 20% of total national banking deposits.
