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Fez – CFG Bank reported a strong start to 2026, with revenue growth driven by sustained expansion in its core banking activities and a steady rise in lending and deposits.
The bank recorded recurrent net banking income of MAD 273 million (approximately $27 million) in the first quarter, up 22% compared to the same period in 2025.
This recurrent activity, which includes interest margins and commissions, accounted for 88% of total net banking income, reflecting the bank’s focus on stable, long-term revenue streams.
Interest margins reached MAD 155 million (around $15 million), marking a sharp 33% increase, supported mainly by higher loan volumes.
Commission income rose more moderately by 9% to MAD 118 million (about $12 million), thanks in large part to both traditional banking services and asset management activities.
The bank’s lending activity continued to expand at a steady pace.
Outstanding loans stood at MAD 19.2 billion (approximately $1.92 billion) at the end of March, up 20% year-on-year, with net production of MAD 3.1 billion (around $310 million).
This growth was largely fueled by the “Enterprise” and “Private Banking” segments.
Customer deposits also showed solid momentum, increasing by 10% over twelve months to reach MAD 20 billion (about $2 billion).
The bank maintained a strong share of non-interest-bearing deposits, which accounted for nearly half of total deposits despite the rise in lending.
At the same time, CFG Bank continued to strengthen its financial structure.
It issued in 2025 two subordinated debt tranches totaling MAD 1 billion (around $100 million), bringing the total outstanding subordinated debt to MAD 1.4 billion (approximately $140 million).
Market-related activities, however, weighed on overall performance.
Net banking income from financial markets dropped sharply to MAD 37 million (about $3.7 million), down 53% from a year earlier.
The decline reflects less favorable conditions in equity and bond markets during the first quarter of 2026, combined with a high comparison base in early 2025.
As a result, total consolidated net banking income rose by a modest 3% to MAD 311 million (around $31 million), while operating income increased by 4% to MAD 178 million (approximately $18 million).
Looking ahead, CFG Bank has revised its medium-term outlook upward.
The bank now expects to reach a group net profit of around MAD 600 million (about $60 million) by 2029, compared to a previous target of MAD 500 million.
For 2026, the bank forecasts a 25% increase in recurrent net banking income, driven by interest margins and commissions, alongside a 5% rise in overall revenue.
Net profit is expected to grow by more than 15%, confirming the bank’s confidence in the strength of its core business model.
