CIH Bank Reports 24.3% Profit Growth, Surpasses MAD 100 Billion Credit Mark

Doha – CIH Bank has reported strong financial results for 2024, with consolidated net profit reaching MAD 966 million ($96.6 million), marking a 24.3% increase from the previous year.

The Group’s share of net profit rose by 23.3% to MAD 875.9 million ($87.59 million), while standalone net profit grew by 21% to MAD 750 million ($75 million).

The bank’s consolidated net banking income (NBI) increased by 6.1% to MAD 4.74 billion ($474 million), driven by a 6.8% improvement in net interest margin and a 17.9% rise in net commission margin.

The NBI structure remained stable, with net interest margin contributing 63%, market activities 21%, and net commission margin 9%.

Customer deposits surged by 13.9%, increasing by MAD 10.3 billion ($1.03 billion) to reach MAD 84.5 billion ($8.45 billion).

These deposits are primarily distributed between CIH Bank at MAD 73.6 billion ($7.36 billion) and UMNIA BANK at MAD 6.3 billion ($630 million). Demand deposits, representing 84% of total customer deposits, grew by 14.9%.

The bank’s consolidated credit portfolio exceeded MAD 100 billion for the first time, reaching MAD 101.2 billion ($10.12 billion), an 11.5% increase.

This portfolio is distributed among CIH Bank (MAD 75.8 billion), SOFAC (MAD 16.5 billion), and UMNIA BANK (MAD 8.8 billion). The consolidated balance sheet total grew by 12.4% to MAD 141 billion ($14.1 billion).

Risk management improved, with consolidated cost of risk decreasing by 16.3% to MAD 1.07 billion ($107 million). The risk cost ratio improved to 0.85% from 1.15% in 2023.

During 2024, CIH Bank expanded its network by adding 19 new branches and 228 ATMs, bringing its total to 427 branches and 1,072 ATMs. The bank has maintained its position as a digital banking leader, with approximately 2 million mobile app users and up to 2 million daily connections.

The Board of Directors has proposed a dividend of MAD 14 ($1.4) per share. To support growth and strengthen capital, the bank increased its capital by MAD 350 million ($35 million) and issued subordinated bonds worth MAD 1 billion ($100 million) for CIH Bank and MAD 250 million ($25 million) for SOFAC.

Looking ahead to 2025, CIH Bank anticipates continued growth, particularly in infrastructure financing related to major sporting events including the 2025 Africa Cup of Nations and the 2030 World Cup.

The bank is also adapting to payment market changes, with its subsidiary Lana Cash operating over 1,400 points of sale.