Banque Marocaine Du Commerce Exteri
30 September 2005
BMCE BANK FINANCIAL COMMUNICATION
2005 HALF YEAR AGGREGATED RESULTS
The Board of Directors of BMCE Bank, chaired by Mr. Othman BENJELLOUN, was held
on Friday, September 23rd, 2005, at the Bank's Head Office. It examined the
Bank's activities during the first half of 2005 as well as the related financial
statements.
STRONG RISE IN BMCE BANK'S RESULTS
• Solid increase in Net Earnings of +28.2%, reaching MAD 370 million, thanks
to the combined effect of the Net Banking Income (NBI) favourable evolution
and net income from equity investments.
• Continued growth in NBI of +8%, to over MAD 1.3 billion, thanks to the
increase in (i) income from market transaction (+23.2%), as a result of
capital gain increase on marketable securities and income from exchange
transactions, (ii) interest margin (+14.5%), (iii) margin on fees (+6.9%)
and (iv) perceived dividends from equity securities (+17.8%).
• Performance achieved in a context of further implementation of (i) its CAP
CLIENT project, aiming to reorganise network distribution through market
segment specialisation and (ii) its branch network extension programme,
targeting 50 new branches per annum between 2005 and 2007.
• Enterprise projects requiring significant levels of investments in terms
of logistics, technologies and human resources, which highlight the
evolution of operating expenses by +11.6% between June 30, 2004 and 2005.
IMPROVED ASSET QUALITY
• Sustained development of BMCE Bank assets with a 12.2% growth in total
assets to almost MAD 70 billion and a +8.6%reinforcement of the bank
shareholder's equity, reaching nearly MAD 6 billions.
• Enhancement of the NPL ratio from 9.16% to 7.67% at end-June 2005, compared
to 12.3% for the banking sector.
• Improvement in the coverage ratio of the non performing loans by 4.2 %
points to 73.4% ( 71.9% for the banking sector)
• Dynamic management of debt collection allowing a +85% rise on provision
write-backs
• Refocusing of equity portfolio with disengagement from Meditel and BCP
equity disposal.
CONSOLIDATED PERFORMANCE OF THE DISTRIBUTION NETWORK
• Project Cap Client generalisation to all the regions of Morocco and
business development, thanks to the opening of 24 new Individuals/
Professionals branches;
• Remarkable rise in commercial indicators, namely loans to customers (+22%),
mortgage loans (+65%), consumer loans (+38%), electronic cards (+15.6%),
Bancassurance contracts (+38%) ...
CONCLUSIVE ACHIEVEMENTS OF THE INVESTMENT BANK 'S BUSINESS LINES
• BMCE Capital Markets Confirmed leadership on foreign exchange currency
market, with new enterprise solutions, namely the option contracts.
• BMCE Capital Bourse, a key player on the stock exchange market, with
18.54% market share.
• BMCE Capital Emissions, leader on the T-bills segment, with 42% market
share
• Improvement in Fitch rating attributed to BMCE Capital Gestion par Fitch
Ratings, ranking this subsidiary in the top of the mutual fund managers in
Africa.
• Development of corporate finance activities through the acquisition of
Financia, a specialised operator in consulting and financial engineering
activities, and the creation of Actif Invest, the first Moroccan company of
real estate fund management.
REINFORCED POSITIONING OF CORPORATE ACTIVITIES
• Significant progression of corporate customer deposits and loans,
respectively by +46% to MAD 7.9 billions and +31% to MAD 16.1 billions.
• A consolidated presence in the project finance field, through its
participation of several large scale operations in the sector of
telecommunications, refining, tourism...
BMCE BANK AWARDED BANK OF THE YEAR 2005, IN MOROCCO, BY THE BANKER
• 'Bank of the Year in Morocco' title granted to BMCE Bank, for the 4th time
since 2000 and for the 2nd consecutive year , by the banker magazine, a
publication of the Financial Times Group.
BMCE STOCK PERFORMANCE
• Since the beginning of the year, BMCE Stock outperforming (+34%), the
Casablanca stock exchange index MASI (+12.4%) and the banking sector index
(+19.7%) as of September 23rd, 2005.
Balance Sheet Statement
In thousand MAD
ASSETS 06/30/2005 06/30/2004
CASH, CENTRAL BANKS, TREASURY, GIRO ACCOUNTS 9 623 954 6 337 620
LOANS TO CREDIT INSTITUTIONS AND EQUIVALENT 12 009 977 10 080 741
. Demand 1 095 948 1 127 566
. Time 10 914 029 8 953 175
LOANS AND ADVANCES TO CUSTOMERS 30 575 663 25 095 731
. Cash and consumer loans 16 258 671 13 917 450
. Equipment loans 6 414 561 5 367 956
. Mortgage loans 4 043 432 2 451 369
. Other loans 3 858 999 3 358 956
ADVANCES ACQUIRED BY FACTORING
TRANSACTION AND MARKETABLE SECURITIES 11 428 025 13 994 650
. Treasury bonds and equivalent securities 6 905 769 7 255 471
. Other debt securities 3 887 909 2 209 233
. Title deeds 634 347 4 529 946
OTHER ASSETS 1 342 623 1 273 541
INVESTMENT SECURITIES 436 210 604 091
. Treasury bonds and equivalent securities
. Other debt securities
EQUITY INVESTMENT AND EQUIVALENT USES 3 108 570 3 797 322
SUBORDINATED LOANS
FIXED ASSETS LEASED AND RENTED
INTANGIBLE FIXED ASSETS 75 773 68 540
TANGIBLE FIXED ASSETS 1 221 435 995 684
TOTAL ASSETS 69 822 230 62 247 920
LIABILITIES 06/30/2005 06/30/2004
CENTRAL BANKS, TREASURY, GIRO ACCOUNTS
LIABILITIES TO CREDIT INSTITUTIONS AND EQUIVALENT 9 655 182 4 799 871
. Demand 1 908 758 624 356
. Time 7 746 424 4 175 515
CUSTOMER DEPOSITS 50 905 524 50 233 987
. Demand deposits 23 578 194 22 117 110
. Savings deposits 8 998 949 8 062 589
. Time deposits 13 708 843 15 657 304
. Other deposits 4 619 538 4 396 984
DEBT SECURITIES ISSUED
. Negotiable debt securities
. Bond loans
. Other debt securities issued
OTHER LIABILITIES 2 725 848 1 034 237
CONTINGENT LIABILITIES 50 628 175 700
REGULATED PROVISIONS 54 682 54 682
SUBSIDIES, ASSIGNED PUBLIC FUNDS AND SPECIAL GUARANTEE FUNDS
SUBORDINATED DEBTS 511 250 500 000
REVALUATION RESERVE
RESERVES AND PREMIUMS RELATED TO CAPITAL 3 961 590 3 513 645
CAPITAL 1 587 514 1 587 514
SHAREHOLDERS. UNPAID-UP CAPITAL
RETAINED EARNINGS (+/-) 21 22 100
NET EARNING BEING APPROPRIATED (+/-) - 37 471
NET EARNING FOR THE YEAR (+/-) 369 990 288 713
TOTAL LIABILITIES 69 822 229 62 247 920
Off-Balance Sheet Statement
In thousand MAD
OFF-BALANCE SHEET 06/30/2005 06/30/2004
GIVEN COMMITMENTS 13 239 473 10 920 181
Financing commitments on behalf of credit institutions and equivalent 513 209 808 571
Financing commitments on behalf of customers 6 502 944 3 905 631
Guarantee commitments given to credit institutions and equivalent 1 980 140 1 813 503
Guarantee commitments given to customers 4 243 180 4 392 476
Securities repos purchased
Other securities to be delivered
RECEIVED COMMITMENTS 143 832 706 352
Financing commitments received from credit institutions and equivalent
Guarantee commitments received from credit institutions and equivalent 110 893 673 087
Guarantee commitments received from the State and various guarantee 32 939 33 265
bodies
Securities repos sold
Other securities to be received
Income Statement
In thousand MAD
06/30/2005 06/30/2004
BANK OPERATING REVENUES 2 063 585 2 076 268
Interests and assimilated revenues on transactions with credit 122 550 82 979
institutions
Interests and assimilated revenues on transactions with customers 909 879 838 589
Interests and assimilated revenues on debt securities 239 277 269 916
Revenues on title deeds 129 162 110 725
Revenues from leased and rented fixed assets
Fees on provided services 180 329 168 687
Other banking revenues 482 388 605 372
BANK OPERATING EXPENSES 724 660 836 079
Interests and assimilated expenses on transactions with credit 86 366 34 425
institutions
Interests and assimilated expenses on transactions with customers 398 497 391 821
Interests and assimilated expenses on debt securities issued - -
Expenses on leased and rented fixed assets
Other banking expenses 239 797 409 833
NET BANKING INCOME 1 338 925 1 240 189
Non-banking operating revenues 88 350 55 897
Non-banking operating expenses 8 448 10 084
GENERAL OPERATING EXPENSES 724 585 649 034
Staff expenses 373 174 356 844
Tax expenses 19 594 20 388
External expenses 262 083 204 078
Other general operating expenses 5 323 7 358
Allowances for depreciation and provisions for intangible and tangible 64 411 60 366
fixed assets
ALLOWANCES FOR PROVISIONS AND LOAN LOSSES 275 139 270 229
Allowances for non performing loans and commitments 230 182 205 810
Loan losses 11 940 17 271
Other allowances for provisions 33 017 47 148
PROVISION WRITE-BACKS AND RECOVERY ON AMORTISED DEBTS 91 912 21 192
Provision write-backs on non performing loans and commitments 27 943 15 984
Recovery of amortised debts 6 243 5 208
Other provision write-backs 57 726 -
CURRENT INCOME 511 015 387 931
Non-current revenues
Non-current expenses
PRE-TAX EARNING 511 015 387 931
Corporate tax 141 025 99 218
NET EARNING FOR THE YEAR 369 990 288 713
Management Balances Statement
In thousand MAD
I- EARNING FORMATION TABLE 06/30/2005 06/30/2004
+ Interests and assimilated revenues 1 272 504 1 191 792
- Interests and assimilated expenses 486 111 429 160
Interest Margin 786 393 762 632
+ Revenues from leased and rented fixed assets
- Expenses on leased and rented fixed assets
Profit from leasing and renting operations
+ Fees received 218 854 202 107
- Fees paid 29 155 24 670
Margin on fees 189 699 177 437
+ Income from operations on transaction securities
+ Income from transactions on marketable securities 215 618 172 133
+ Income from exchange transactions 45 924 65 010
+ Income from derivatives transactions 15 283 - 12 440
Income from market transactions 276 825 224 703
+ Other miscellaneous banking revenues 130 322 111 932
- Other miscellaneous banking expenses 44 314 36 515
NET BANKING INCOME 1 338 925 1 240 189
+ Net income from equity investments 110 966 - 29 368
+ Other non-banking operating revenues 2 973 55 568
- Other non-banking operating expenses 8 448 10 084
- General operating expenses 724 585 649 034
GROSS OPERATING EARNING 719 831 607 271
+ Allowances for non performing loans and commitments (net of write-backs) - 207 936 - 201 889
+ Other allowances net of provision write-backs - 880 - 17 451
CURRENT INCOME 511 015 387 931
NON-CURRENT INCOME
- Corporate tax 141 025 99 218
NET EARNING FOR THE YEAR 369 990 288 713
II- CASH-FLOW
+ NET EARNING FOR THE YEAR 369 990 288 713
+ Allowances for depreciation and provisions for intangible and tangible 64 411 60 366
fixed assets
+ Allowances for provisions for equity investments depreciation 23 017 29 368
+ Allowances for provisions for general risks
+ Allowances for regulated provisions
+ Non-current allowances
- Provisions write-backs 48 606 -
- Capital gains on disposals of intangible and tangible fixed assets 536 41 253
+ Capital losses on disposals of intangible and tangible fixed assets 1 377 4 211
- Capital gains on disposals of equity investments 85 377 -
+ Capital losses on disposals of equity investments - -
- Write-backs of investment subsidies received
+ FINANCING CAPACITY 324 276 307 826
- Dividends distributed
+ CASH-FLOW 324 276 307 826
Non Performing Loans & Provisions
In thousand MAD
06/30/04 06/30/05
Claims Provisions and reserved Claims Provisions and reserved
interest interest
Substandard loans 124 831 28 379 3 257 -
Doubtful loans 130 574 - 30 426 13 739
Loss loans 2 592 796 1 942 921 2 741 641 2 023 615
Total 2 848 201 1 971 300 2 775 324 2 037 354
Turnover
In thousands MAD
First Semester 2005 2 064 204
Second Semester 2004 1 901 614
First Semester 2004 2 076 268
ERNST & YOUNG KPMG
ERNST & YOUNG SARL
37, Bd Abdellatif Ben Kaddour 6, Rue Toudgha
20050 Casablanca Agdal - Rabat
BANQUE MAROCAINE DU COMMERCE EXTERIEUR-BANK
BMCE-BANK
ATTESTATION OF THE STATUTORY AUDITORS
FROM JANUARY 1st TO JUNE 30, 2005
According to law ndegrees 23-01 of May 6, 2004, modifying and completing the
dahir related to the law ndegrees 1-93-212 of September 21st, 1993, we have
conducted a limited review of the interim balance sheet and income statement
situation of the Banque Marocaine du Commerce Exterieur 'BMCE-BANK' for the
first semester running from January 1st to June 30, 2005.
We conducted our limited review in accordance with the professional standards
and given 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.
September 23, 2005
Statutory Auditors
ERNST & YOUNG KPMG
Ali BENNANI Jamal Saad El Idrissi
Partner Partner
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