Banque Marocaine Du Commerce Exteri
18 March 2005
FINANCIAL COMMUNICATION
ANNUAL RESULTS 2004
The Board of Directors of BMCE Bank, chaired by Mr Othman BENJELLOUN , was held
on March 11th, 2005, at the Bank's Head Office. It examined the Bank's
activities during the fiscal year 2004 and closed the related accounts.
STRONG INCREASE IN NET EARNINGS
• Substantial rise of +24% in Net Income to 505.7 million MAD, inducing an
improvement in ROE from 8% to 9.74%.
• Sustained growth of +9.5% in Net Banking Income to more than 2.4 billion
MAD, thanks to the increase in (i) income from market transactions of
+81.5%, brought about by an upsurge in foreign exchange revenues and
capital gains in marketable securities, and (ii) net fees income due to the
growth in the number of accounts.
• Improvement of nearly 2 percentage points (pp) in Cost to Income ratio to
53.9%, despite the increase in general operating expenses, driven by the
implementation of restructuring projects, which required recruitment,
training and other investment.
• Slight improvement in NPL ratio to 8.6%, well below the sector average,
reflecting a better risk management.
COMMERCIAL PERFORMANCE
• Rise of +12.6% in Customer Deposits to 53.3 billion MAD, with a +0.6pp
gain in market share to 16.5%.
• Sustained growth in the Moroccan Expatriates activity, with deposits
increasing by +20.9% and a market share up from 6.1% to 7%.
• Increase of +8% in Customer Loans to 26.4 billion MAD, attributable to a
rise of +1.4 billion MAD in mortgage loans to 3.2 billion MAD. The market
share is stable at 15.8%.
• Maintained growth in the number of accounts, with +185 000 new accounts
open in 2004.
• Improvement in the customer uptake, with more than 85% of check accounts
and roughly half of the passbook accounts are provided with at least one
product.
• +73 200 electronic payment cards issued in 2004
• Nearly 88 000 new bancassurance contracts sold in 2004 (+31,5%)
ACHIEVEMENT IN MARKET ACTIVITIES
• Confirmation of the market maker position of BMCE Capital Markets in the
foreign exchange activity and reinforcement of BMCE Capital Bourse's market
share in the Central Shares Market to 13.1%, as one of the key brokerage
firms in the Casablanca Stock Exchange.
• Consolidation of BMCE Capital Emissions' position as a major player in the
marketplace, with almost 30% share in terms of total volumes.
• Growth of +32% in the assets under management of BMCE Capital Gestion, with
a market share up by +1 pp to 14.2%, and of +15% in the assets under
custody of BMCE Capital Titres.
• Launch by Capital Invest, in December 2004, of the first mortgage fund,
ACTIF CAPITAL 1, which raised 200 million MAD in its first closing.
• Very encouraging results of BMCE Capital Dakar, with an increase of +127%
in revenues, nearing 22 million MAD.
OUTCOME OF THE CORPORATE BANK
• Reinforced positioning in the project finance activity, as a lead arranger
or co-arranger for the financing of several large scope projects.
• Creation of a branch for corporate clients as part of the specialisation of
the BMCE Bank's Network, for purposes related to proximity and high added
value offer.
DEVELOPMENT OF THE OVERSEAS ACTIVITY
• Increase in BMCE Paris' Net Banking Income and Net Income of +4.3% and
+12%, respectively, to 10.4 and 3.8 million euros.
• Growth of +16.5% in the trade finance
• Development of collaboration and synergy areas with the Credit Industriel
et Commercial Group -CIC, notably the channelling of certain commercial
operations of the Bank in France and the assistance of French small and
medium sized businesses, willing to invest in Morocco.
CONSOLIDATION OF THE FOREIGN SHAREHOLDING: SIGN OF TRUST IN THE BANK'S
PERSPECTIVES
• Strategic partnership sealed with the French Bank CIC that acquired 10% of
BMCE Bank's capital, being then the foreign reference shareholder.
• Acquisition of a 3% stake in the capital of BMCE Bank by Morgan Stanley
Investment Management.
The Board of Directors proposes to the General Meeting of Shareholders the
payment of a dividend of 16 Dirhams per share.
REINFORCEMENT OF THE CORPORATE GOVERNANCE
• Reinforcement of the Bank's governance through the institution of two
committees issued from the Board of Directors:
(i) Nomination/Remuneration Committee, charged of assisting the Board in
the implementation of a remuneration and profit sharing strategy for
the Bank's Senior Management.
(ii) Conventions Committee, providing a point of view on the conventions
submitted for the Board's approval.
Agenda
Announcement of Results: March 16th, 2005
Ordinary General Meeting: May 2005
Publication of Consolidated Accounts: June 2005
Annual Report: July 2005
AGGREGATED BALANCE SHEET
AS OF DECEMBER 31ST, 2004
in KMAD in KMAD
ASSETS 12/31/2004 12/31/2003 LIABILITIES 12/31/2004 12/31/2003
Cash, Central Banks, 5 391 337 5 607 500 Central Banks, Treasury,
Treasury, Giro Accounts Giro Accounts
Loans to Credit Institutions 11 606 497 9 707 284 Liabilities to Credit 3 418 937 3 796 508
and Equivalent Institutions and Equivalent
. Demand 1 978 509 2 300 268 . Demand 619 217 509 916
. Time 9 627 988 7 407 016 . Time 2 799 720 3 286 592
Loans and Advances to 26 426 804 24 461 765 Customer Deposits 53 263 833 47 305 065
Customers
. Cash and Consumer Loans 14 499 573 13 970 628 . Demand Deposits 23 321 974 23 191 558
. Equipment Loans 5 885 428 5 136 121 . Savings Deposits 8 540 900 7 636 825
. Mortgage Loans 3 224 957 1 852 470 . Time Deposits 16 674 861 11 865 898
. Other Loans 2 816 846 3 502 546 . Other Deposits 4 726 098 4 610 784
Advances acquired by Debt Securities Issued
Factoring
. Negotiable Debt Securities
Transaction and Marketable 14 530 881 11 420 080 . Bond Loans
Securities
. Treasury Bonds and 8 542 115 8 246 167 . Other Debt Securities
Equivalent Securities Issued
. Other Debt Securities 2 237 044 2 333 515
. Title deeds 3 751 722 840 398 Other Liabilities 1 420 012 639 155
Other Assets 1 268 976 1 119 005 Contingent Liabilities 216 009 195 416
Investment Securities 509 661 638 459 Regulated Provisions 54 682
. Treasury Bonds and
Equivalent Securities
. Other Debt Securities 509 661 638 459 Subsidies, Assigned Public
Funds and Special Guarantee
Funds
Equity Investment and 3 508 954 3 858 501 Subordinated Debts 500 000 500 000
Equivalent Uses
Subordinated Loans Revaluation Reserve
Fixed Assets Leased and Reserves and premiums 3 536 934 3 401 510
Rented related to capital
Intangible Fixed Assets 70 808 64 537 Capital 1 587 514 1 587 514
Tangible Fixed Assets 1 211 813 971 232 Shareholders. Unpaid-up
Capital (-)
Retained Earnings (+/-) 22 100 91
Net Earnings being 15 304
Appropriated (+/-)
Net Earnings for the Year (+/-) 505 710 407 800
TOTAL ASSETS 64 525 731 57 848 363 TOTAL LIABILITIES 64 525 731 57 848 363
AGGREGATED OFF BALANCE SHEET
AS OF DECEMBER 31ST, 2004
in KMAD
OFF BALANCE SHEET 12/31/2004 12/31/2003
GIVEN COMMITMENTS 11 053 099 10 832 160
Financing commitments on behalf of credit institutions and equivalent 584 296 997 032
Financing commitments on behalf of customers 4 179 956 3 755 870
Guarantee commitments given to credit institutions and equivalent 1 953 234 1 676 793
Guarantee commitments given to customers 4 335 613 4 402 465
Securities repos purchased
Other securities to be delivered
RECEIVED COMMITMENTS 465 976 665 596
Financing commitments received from credit institutions and equivalent
Guarantee commitments received from credit institutions and equivalent 432 809 630 095
Guarantee commitments received from the State and various guarantee bodies 33 167 35 501
Securities repos sold
Other securities to be received
AGGREGATED INCOME STATEMENT
AS OF DECEMBER 31ST, 2004
in KMAD
12/31/2004 12/31/2003
BANK OPERATING REVENUES 3 970 165 3 965 430
Interests and assimilated revenues on transactions with credit institutions 206 223 222 014
Interests and assimilated revenues on transactions with customers 1 683 333 1 651 741
Interests and assimilated revenues on debt securities 505 957 522 689
Revenues on title deeds 110 203 96 372
Revenues from leased and rented fixed assets
Fees on provided services 350 494 328 633
Other banking revenues 1 113 955 1 143 981
BANK OPERATING EXPENSES 1 528 644 1 736 554
Interests and assimilated expenses on transactions with credit institutions 80 805 133 063
Interests and assimilated expenses on transactions with customers 786 032 686 521
Interests and assimilated expenses on debt securities issued
Expenses on leased and rented fixed assets
Other banking expenses 661 807 916 970
NET BANKING INCOME 2 441 521 2 228 876
Non-banking operating revenues 69 671 76 634
Non-banking operating expenses 132 445 24 835
GENERAL OPERATING EXPENSES 1 316 441 1 241 963
Staff expenses 699 931 676 124
Tax expenses 35 136 21 490
External expenses 454 438 415 493
Other general operating expenses 4 987 6 715
Allowances for depreciation and provisions for intangible and tangible fixed 121 949 122 141
assets
ALLOWANCES FOR PROVISIONS AND LOAN LOSSES 673 926 973 258
Allowances for non performing loans and commitments 359 080 629 740
Loan losses 175 167 284 395
Other allowances for provisions 139 679 59 123
PROVISION WRITE-BACKS AND RECOVERY ON AMORTISED DEBTS 352 844 496 891
Provision write-backs on non performing loans and commitments 308 044 400 559
Recovery of amortised debts 34 561 33 780
Other provision write-backs 10 239 62 552
CURRENT INCOME 741 224 562 345
Non-current revenues
Non-current expenses
PRE-TAX EARNINGS 741 224 562 345
Corporate tax 235 514 154 545
NET EARNINGS FOR THE YEAR 505 710 407 800
AGGREGATED MANAGEMENT BALANCES STATEMENT
AS OF DECEMBER 31ST, 2004
in KMAD
EARNINGS FORMATION TABLE 12/31/2004 12/31/2003
+ Interests and assimilated revenues 2 402 098 2 398 348
- Interests and assimilated expenses 872 907 821 143
Net interest income 1 529 191 1 577 205
+ Revenues from leased and rented fixed assets
- Expenses on leased and rented fixed assets
Profit from leasing and renting operations
+ Fees received 427 118 403 233
- Fees paid 55 445 48 124
Net fees income 371 673 355 109
+/- Income from operations on transaction securities 42
+/- Income from transactions on marketable securities 383 097 202 803
+/- Income from exchange transactions 125 584 80 387
+ Income from derivatives transactions -23 064 -15 620
Income from Market Transactions 485 617 267 612
+ Other miscellaneous banking revenues 151 363 96 875
- Other miscellaneous banking expenses 96 323 67 925
NET BANKING INCOME 2 441 521 2 228 876
+/- Net income from equity investments -213 852 40 721
+ Other non-banking operating revenues 67 428 28 563
- Other non-banking operating expenses 14 527 7 732
- General operating expenses 1 316 441 1 241 963
GROSS OPERATING INCOME 964 129 1 048 465
+/- Allowances for non performing loans and commitments (net of write-backs) -191 635 -479 795
+ Other allowances net of provision write-backs -31 270 -6 325
CURRENT INCOME 741 224 562 345
NON-CURRENT INCOME
- Corporate tax 235 514 154 545
NET EARNINGS FOR THE YEAR 505 710 407 800
CASH-FLOW 12/31/2004 12/31/2003
+/- NET EARNINGS FOR THE YEAR 505 710 407 800
+ Allowances for depreciation and provisions for intangible and tangible fixed 121 949 121 917
assets
+ Allowances for provisions for equity investments depreciation 98 178 23 374
+ Allowances for provisions for general risks
+ Allowances for regulated provisions
+ Non current allowances
- Provisions write-backs 33 132
- Capital gains on disposals of intangible and tangible fixed assets 41 886 4 172
+ Capital losses on disposals of intangible and tangible fixed assets 4 268 2 060
- Capital gains on disposals of equity investments 2 243 48 070
+ Capital losses on disposals of equity investments 117 918 17 103
- Write-backs of investments subsidies received
+/- FINANCING CAPACITY 803 894 486 880
- Dividends distributed 216 040 220 667
+ CASH-FLOW 587 854 266 213
PROVISIONS
FROM JANUARY 1ST TO DECEMBER 31ST, 2004
Aggregated Activity in KMAD
PROVISIONS Amount 12/31/2003 Allowances Write-backs Other Changes Amount 12/31/2004
PROVISIONS, DEDUCTED FROM 1 912 765 473 237 170 531 157 009 2 058 462
ASSETS, ON:
Loans to credit
institutions and equivalent
Loans and advances to 1 752 863 359 075 150 367 157 307 1 804 264
customers
Doubtful interest 33 118 1 667 31 451
Marketable securities 20 064 18 497 1 567
Equity investments and 106 720 114 162 -298 221 180
equivalent assets
Leased and rented fixed
assets
Other assets
PROVISIONS RECORDED UNDER 195 416 81 173 10 221 4 323 270 691
LIABILITIES
Provisions for risks of 17 511 8 574 -13 060 13 025
fulfilment commitments
Provisions for exchange
risks
Provisions for general
risks
Contingent liabilities 168 256 997 10 221 17 383 176 415
Provisions for retirement
pensions and similar
obligations
Provisions for other risks 9 649 16 920 26 569
and expenses
Regulated provisions 54 682 54 682
TOTAL 2 108 181 554 410 180 752 161 332 2 329 153
FY 2004 FY 2003
Recovery of amortised debts 34 561 33 780
NON PERFORMING LOANS TABLE
Aggregated Activity in KMAD
Loans / Disbursed Commitments by Total 3 Provisions Provisions for Provisions
Provisions Loans (1) signature (2) = 1+2 for Disbursed Commitments by signature 6=4+5
Loans (4) (5) (Doubtful interests)
Substandard 4 798 4 798
loans
Doubtful loans 60 413 60 413 48 079 48 079
Loss loans 2 649 671 152 527 2 802 1 756 183 31 451 1 787 634
198
Total 2 714 882 152 527 2 867 1 804 262 31 451 1 835 713
409
TURNOVER
Aggregated activity in KMAD
Second semester 2004 1 901 614
First semester 2004 2 076 268
Second semester 2003 2 053 269
ERNST & YOUNG KPMG
37, Bd Abdellatif Ben Kaddour 6, Rue Todgha
20 000 Casablanca Rabat - Agdal
Maroc Maroc
BANQUE MAROCAINE DU COMMERCE EXTERIEUR-BANK
BMCE-BANK
ATTESTATION OF THE STATUTORY AUDITORS
ON THE INTERIM BALANCE SHEET AND INCOME STATEMENT
RELATING TO THE YEAR ENDED DECEMBER 31, 2004
In compliance with the requirements of law ndegrees 23-01 dated May 6, 2004,
modifying and completing the dahir related to the law no 1-93-212 of
September 21st, 1993, we have conducted a limited review of the interim balance
sheet and income statement of the Banque Marocaine du Commerce Exterieur
'BMCE-BANK' for the year running from January 1st to December 31, 2004.
We conducted our limited review in accordance with the professional standards
and based on the prevailing legal and statutory conditions.
On the basis of our limited review, we did not identify any fact likely to
affect, significantly, the sincerity of the information contained in these
documents.
Without qualifying our opinion above, we draw attention to the fact that the
identified risks which were covered until December 31, 2003 by the allowance for
general risks (which had been constituted from the distributable income for MMAD
150), have been either cleared in 2004 through the bookkeeping of specific
allowances or through loss recognition. Therefore, the allowance for general
risks is now considered as an equity.
March 11, 2005
Statutory Auditors
ERNST & YOUNG KPMG
Ali BENNANI Jamal Saad El Idrissi
Partner Partner
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