Rabat - BMCE Bank of Africa recorded an historic net income of more than MAD 2 billion, an increase of 4 percent over 2015, for a net banking income close to MAD 13 billion. The size of the consolidated balance sheet also reached a new record of MAD 306 billion.
Rabat – BMCE Bank of Africa recorded an historic net income of more than MAD 2 billion, an increase of 4 percent over 2015, for a net banking income close to MAD 13 billion. The size of the consolidated balance sheet also reached a new record of MAD 306 billion.
BMCE Bank of Africa Group presented its 2013 financial results Thursday. The disclosure was the first in an explanatory session led by the Board of Directors under the leadership of Brahim Benjelloun Touimi, and Chairman and Chief Executive Officer Othman Benjelloun, who spoke to the audience of journalists and analysts.
In view of the results achieved by BMCE Bank of Africa, both in consolidated and social accounts, the group achieved a successful 2016 financial year, despite a difficult economic situation, both on an African and international front. The group also generated a net banking income of MAD 13 billion, up 10 percent. Gross operating income was up to MAD 5.6 billion, up by 15 percent.
“In the unfavorable national and African economic context, the results of our group are quite honorable. These performances are a pride for all the 14,000 members of the BMCE Bank of Africa Group,” said Benjelloun.
According to the CEO, these good results represent a “fair reward” for the contribution that the group makes to the solidity of the Moroccan banking system and that of the Moroccan economy. “These performances would have been even more significant, were it not for the exceptional events that characterized the 2016 financial year,” he noted. It should be pointed out that BMCE Bank SA (the bank in Morocco) registered a 73 percent increase, to MAD 550 million in corporate tax.
The results were also impacted by a 12 percent increase in the cost of the consolidated net risk, amounting to MAD 1.617 billion. As a result, the stock of provisions increased by 22 percent to MAD 9.1 billion at the end of 2016. This reflects an overall policy to strengthen risk coverage at the Group level, mainly in countries with difficult contexts, such as Kenya.
Overall, the BOA subsidiaries, operating in 18 countries, contributed by 45 percent to the cost of risk, compared with 40 percent for BMCE Bank SA. Contrary to the trend observed for sub-Saharan subsidiaries, the cost of risk for the bank in Morocco decreased by 14 percent to MAD 821 million. This, along other factors, helped to achieve a net (social) profit of MAD 1.325 billion (+ 2 percent), for a gross national product up by 14 percent to MAD 6.136 billion.
BMCE Bank of Africa’s activity in the Moroccan market (BMCE Bank + subsidiaries), therefore, accounts for 59 percent of the group’s net income, compared to 41 percent for international operations, virtually unchanged. Africa accounts for 32 percent against 9 percent for Europe.