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Agadir – Bank Al-Maghrib (BAM) recorded a net profit of MAD 5.74 billion ($ 612.8 million) in 2025, down 11% compared with the previous year, as lower monetary policy returns and higher operating expenses weighed on its financial performance.
The central bank’s annual report on the economic, monetary, and financial situation attributed the decline to a decrease in the outcome of monetary policy operations, higher general operating expenses, and a weaker non-current result.
“The decline is mainly due to the combined effect of the decline in the result of conducting monetary policy, the increase in general operating expenses, taking into account the establishment this year of the provision for financial risks, as well as the decline in the non-current result,” Bank Al-Maghrib said.
The central bank explained that the decline in monetary policy-related results amounted to MAD 746.6 million ($79.5 million), following three consecutive years of growth. This was primarily linked to reductions in the policy rate, which was lowered by 25 basis points in March 2025 to 2.25%, where it remained throughout the rest of the year.
At the same time, BAM’s financial performance was supported by stronger results from foreign exchange reserve management operations, which increased by MAD 1.2 billion ($128 million), as well as growth in other operations, which rose by MAD 244.58 million ($26 million).
The improvement in foreign exchange reserve management results was mainly driven by higher net bond income, which increased by MAD 1.31 billion ($139.9 million), benefiting from improved interest income, particularly from the investment portfolio, and net capital gains on investment securities.
However, the central bank noted that interest income from money market investments declined due to lower investment rates amid monetary easing by the US Federal Reserve and the European Central Bank.
Higher expenses linked to risk provisions
Bank Al-Maghrib’s general operating expenses increased by MAD 1 billion ($106 million), mainly due to the creation of a financial risk provision of the same amount in 2025.
The provision aims to cover potential losses on market-to-market portfolios, particularly in the event of interest rate and market shocks similar to those experienced during 2022-2023, according to the report.
Meanwhile, the non-current result declined to negative MAD 545.41 million ($58 million), down by MAD 98.56 million ($10 million), mainly due to the settlement in 2025 of the social solidarity contribution on profits, amounting to MAD 585.82 million ($62.5 million).
Banking sector remains resilient
The central bank’s financial results came as Morocco’s banking sector maintained strong performance in 2025 despite an uncertain global environment marked by geopolitical tensions and the effects of US tariff policies.
“In this context, Morocco recorded notable economic performance, with growth improving to 4.9%, driven by investment momentum in economic and social infrastructure,” BAM said, adding that inflation remained contained at 0.8%.
During the year, bank lending increased by 6.5%, while customer deposits grew by 7.6%. The ratio of non-performing loans stood at 8.3% on a standalone basis and 8.8% on a consolidated basis, reflecting declines of 12 and 18 basis points, respectively, compared with the previous year.
