The Moroccan bank performed well during the first half of 2020, increasing its Net Banking Income (NBI) to MAD 2.1 billion ($0.23 billion).
Meknes – The Credit Agricole Group of Morocco (CAM) recorded an increase of 9% in its Net Banking Income (NBI) despite the economic and social situation strongly impacted by the Covid-19 pandemic.
The group’s performance is primarily related to growth in interest margin and profit from trading operations, according to a press release on its half-year indicators.
On September 17, the Executive Board of Credit Agricole of Morocco, under the chairmanship of Tariq Sijilmassi, examined the evolution of the bank’s activity and drew up the final statements on June 30.
As of June 30, 2020, CAMreported a net consolidated income of MAD 418 million ($45.31 million), to record a 3% increase. The report also stated a net income group share that amounted to MAD 449 million ($48.67 million) (+10%). This excluding the impact of the bank’s contribution to Morocco’s Special Fund for the Management and Response to COVID-19.
More specifically, the CAM’s adaptive commercial strategy helped the group achieve a MAD 87 million ($9.43 million) (+3%) of outstanding mobilized savings and raise the outstanding financing of the economy to MAD 89 million ($9.65 million) (+6.4%).
In terms of corporate accounts and excluding the impact of the donation to the Covid-19 fund, the Bank’s net banking income MAD 2 million ($0.22 million) and net income MAD 250 million ($27.10 million) increased by 12% and 4% respectively during the first half of 2020.
The bank’s statement outlined that two reasons are behind this increase. First, the control of resources’ cost and the growth in outstanding loans to the economy led to an improvement in the net interest margin. And second, the rise in income from market operations.
The Bank fortified its general risk provisions with MAD 350 million, bringing them to MAD 1.3 billion, i.e. 1.5% of the healthy outstanding customer loans. This allowed the group to allocate provisions for the “Forward Looking” in anticipation of future risks related to the impact of COVID-19.
The bank participated in the “Tadamoun” operation, mobilizing more than 100 of its agencies to distribute the financial aid provided by the Special Fund to households operating in the informal sector, particularly in rural and landlocked areas. It also distributed social security indemnities to more than a hundred thousand employees for an amount of MAD 178 million ($19.30 million).
Supporting and translating King Mohamed VI initiatives, CAM provides non-financial support to eligible project leaders through advice and availability of the bank’s experts and ecosystem.
The bank mobilized an additional envelope of credits of 1.5 MDH to mitigate the effects of reduced rainfall on farmers. This is to guarantee the continuation of “Intelaka” offers within the framework of the national program “Al Moustatmir Al Qaraoui”.
The CAM signed a credit line of MAD 560 million ($60.71 million) with the French Development Agency (AFD).
The scope of this agreement includes financing farms’ energy projects and private agro-industrial units in rural areas, postponing credit maturities to support and accompany vulnerable customers affected by COVID-19, and setting up products to preserve the economic fabric to support businesses and help them cope with salary payments.