Banque Marocaine Du Commerce Exteri
29 June 2007
BMCE BANK
CONSOLIDATED FINANCIAL STATEMENTS AS OF DECEMBER 31st, 2006
CONSOLIDATED BALANCE SHEET AS OF DECEMBE 31ST, 2006
Assets 2006 2005
CASH, CENTRAL BANKS, TREASURY, GIRO ACCOUNTS 7,833,528 7,090,275
LOANS TO CREDIT INSTITUTIONS AND EQUIVALENT 14,324,319 12,735,302
. Demand 3,645,771 3,249,114
. Time 10,678,548 9,486,188
LOANS AND ADVANCES TO CUSTOMERS 39,411,120 31,296,160
. Cash and consumer loans 19,248,713 16,540,796
. Equipment loans 8,002,998 6,452,259
. Mortgage loans 7,747,591 5,102,795
. Other loans 4,411,818 3,200,310
LEASING AND RENTED OPERATIONS 5,631,331 5,108,321
ADVANCES ACQUIRED BY FACTORING 742,716 679,767
TRANSACTION AND MARKETABLE SECURITIES 11,721,359 12,699,680
. Treasury bonds and equivalent securities 2,877,869 6,932,730
. Other debt 1,572,015 2,954,398
securities
. Title deeds 7,271,475 2,812,552
OTHER ASSETS 1,536,308 2,169,213
INVESTMENT SECURITIES 27 27
. Treasury bonds and equivalent securities 27 27
. Other debt - -
securities
EQUITY INVESTMENTS OF NON CONSOLIDATED AFFILIATES 1,635,969 2,043,787
SECURITIES CONSOLIDATED BY THE EQUITY METHOD 184,634 131,795
. Financial companies 184,634 131,795
. Other companies - -
SUBORDINATED LOANS - -
INTANGIBLE FIXED ASSETS 140,640 93,697
TANGIBLE FIXED ASSETS 1,840,684 1,528,350
GOODWILL ON ACQUISITION 21,297 24,490
TOTAL ASSETS 85,073,932 75,600,864
In thousand MAD
Liabilities 2006 2005
CENTRAL BANKS, TREASURY, GIRO ACCOUNTS - -
LIABILITIES TO CREDIT INSTITUTIONS AND EQUIVALENT 5,013,327 5,903,568
. Demand 690,716 1,337,780
. Time 4,322,611 4,565,788
CUSTOMER DEPOSITS 67,618,132 57,757,246
. Demand deposits 34,392,889 28,257,181
. Savings deposits 10,985,108 9,792,974
. Time deposits 17,794,638 15,196,824
. Other deposits 4,445,497 4,510,267
DEBT SECURITIES ISSUED 1,076,635 765,647
. Negotiable debt securities 816,807 506,217
. Bond loans 259,828 259,430
. Other debt securities issued - -
OTHER LIABILITIES 2,818,211 3,183,172
GOODWILL ON ACQUISITION - -
CONTINGENT LAIBILITIES 69,823 99,171
REGULATED PROVISIONS - -
SUBSIDIES, ASSIGNED PUBLIC FUNDS AND SPECIAL GUARANTEE FUNDS - 100
SUBORDINATED LOANS 1,020,368 1,001,358
PREMIUMS RELATED TO CAPITAL 4,281,611 3,943,593
CAPITAL 1,587,514 1,587,514
SHAREHOLDERS UNPAID-UP CAPITAL (-) - -
CONSOLIDATED RESERVES, REVALUATION RESERVE, 682,951 582,414
UNREALISED EXCHANGE GAINS/LOSSES DIFFERENTIALS AND
DIFFERENCE IN EQUITY METHOD
. Group share 343,870 247,699
. Minority interests 339,081 334,715
NET INCOME FOR THE YEAR (+/-) 905,360 777,081
. Group share 834,069 736,014
. Minority interests 71,291 41,067
TOTAL LIABILITIES 85,073,932 75,600,864
In thousand MAD
OFF BALANCE SHEET AS OF DECEMBE 31ST, 2006
Off- Balance Sheet 2006 2005
GIVEN COMMITMENTS 12,344,386 16,379,110
Financing commitments on behalf of credit institutions and equivalent 37,985 340,518
Financing commitments on behalf of customers 5,058,687 8,069,809
Guarantee commitments given to credit institutions and 2,075,608 2,730,804
equivalent
Guarantee commitments given to customers 5,172,106 5,237,979
Securities repos purchased - -
Other securities to be delivered - -
RECEIVED COMMITMENTS 2,162,392 2,012,144
Financing commitments received from credit institutions and equivalent - 172,144
Guarantee commitments received from credit institutions and equivalent 2,130,545 1,381,872
Guarantee commitments received from state and various guarantee bodies 31,847 458,128
Securities repos sold - -
Other securities to be received - -
In thousand MAD
CONSOLIDATED INCOME STATEMENT AS OF DECEMBE 31ST, 2006
2006 2005
BANK OPERATING REVENUES 7,035,036 4,559,326
Interests and assimilated revenues on transactions with credit institutions 377,398 268,367
Interests and assimilated revenues on transactions with customers 2,238,321 2,405,892
Interests and assimilated revenues on debt securities 240,419 445,534
Revenues on title deeds 84,119 94,327
Revenues from leased and rented fixed assets 2,310,543 -
Fees on provided services 638,474 523,021
Other banking revenues 1,145,762 822,185
BANK OPERATING EXPENSES 3,428,543 1,457,805
Interests and assimilated expenses on transactions with credit institutions 317,461 244,650
Interests and assimilated expenses on transactions with customers 854,883 806,917
Interests and assimilated expenses on debt securities issued 45,916 59,227
Expenses on leased and rented fixed assets 1,831,945 -
Other banking expenses 378,338 347,011
NET BANKING INCOME 3,606,493 3,101,521
Non-Banking operating revenues 173,129 265,381
Non-Banking operating expenses 12,181 42,104
GENERAL OPERATING EXPENSES 2,125,664 1,842,173
Staff expenses 1,055,029 939,087
Tax expenses 41,402 37,642
External expenses 801,029 694,783
Other general operating expenses 6,010 8,037
Allowances for depreciation and provisions for tangible fixed assets 222,194 162,624
ALLOWANCES FOR AMORTISATION ON GOODWILL ACQUISITION 8,999 6,641
GOODWILL ACQUISITION WRITE BACKS - -
ALLOWANCES FOR PROVISIONS AND LOAN LOSSES 867,746 860,794
Allowances for non performing loans and commitments 584,945 519,016
Loan losses 221,060 228,226
Other allowances for provisions 61,741 113,552
PROVISION WRITE-BACKS AND RECOVERY ON AMORTISED DEBTS 603,430 532,786
Provision write-backs on non performing loans and commitments 446,396 343,500
Recovery of amortised debts 34,281 37,418
Other provision write-backs 122,753 151,868
CURRENT INCOME 1,386,462 1,147,976
Non-current revenues 636 245
Non-current expenses 29,682 55
PRE-TAX EARNINGS 1,339,416 1,148,166
Corporate tax 456,256 383,758
NET EARNINGS OF COMPANIES ACCOUNTED FOR BY FULL CONSOLIDATION 883,160 764,408
SHARE IN NET INCOME OF COMPANIES ACCOUNTED FOR BY EQUITY METHOD 22,200 12,673
Financial companies 22,200 12,673
Other companies - -
NET EARNINGS FOR THE YEAR 905,360 777,081
Group's equity 834,069 736,014
Minority interests 71,291 41,067
In Thousand MAD
CONSOLIDATED MANAGEMENT BALANCE STATEMENTS AS OF DECEMBE 31ST, 2006
Earnings formation table 2006 2005
+ Interest and equivalent revenues 2,791,203 3,118,056
- Interests and equivalent expenses 1,216,998 1,112,492
INTEREST MARGIN 1,574,205 2,005,564
+ Revenues from leased and rented fixed assets 2,310,543 -
- Expenses on leased and rented fixed assets 1,831,945 -
PROFIT FROM LEASING AND RENTING OPERATIONS 478,598 -
Fess received 736,399 641,032
Fees paid 66,926 65,999
MARGIN ON FEES 669,473 575,033
Income from operations on transaction securities - -
Income from operations on marketable securities 687,877 304,863
Income from exchange transactions 110,918 95,698
Income from derivatives transactions - 8,179 28,165
INCOME FROM MARKET TRANSACTIONS 790,616 428,726
Other miscellaneous banking revenues 168,652 158,017
Other miscellaneous banking expenses 75,051 65,819
NET BANKING INCOME 3,606,493 3,101,521
Net income from equity investments 110,477 246,282
Other non-banking operating revenues 46,808 34,414
Other non-banking operating expenses - 6,936 - 33,569
General operating expenses 2,125,664 1,842,173
GROSS OPEARTING INCOME 1,631,178 1,506,475
Allowances for non performing loans and commitments (net of write-backs) - 322,047 - 370,439
Other allowances net of provisions write-backs 68,330 18,581
Allowances net of write backs on goodwill acquisition - 8,999 - 6,641
amortisation
CURRENT INCOME 1,368,462 1,147,976
NON-CURRENT INCOME - 29,046 190
Tax 456,256 383,758
NET EARNINGS OF COMPANIES ACCOUNTED FOR BY FULL CONSOLIDATION 883,160 764,408
SHARE IN NET INCOME OF COMPANIES ACCOUNTED FOR BY EQUITY METHOD 22,200 12,673
Financial companies 22,200 12,673
Other companies - -
NET EARNINGS FOR THE YEAR 905,360 777,081
Group's equity 834,069 736,014
Minority interests 71,291 41,067
Cash-Flow 2006 2005
NET EARNINGS FOR THE YEAR 905,360 777,081
Allowances for depreciation and provisions for intangible and tangible fixed 175,656 143,830
assets
Allowances for provisions for equity investments depreciation 13,776 29,388
Allowances for provisions for general - -
risks
Allowances for regulated provisions 2,058 849
Non-current allowances 1,000 400
Provision write-backs 18,731 55,862
Capital gains on disposals of intangible and tangible fixed 5,177 1,535
assets
Capital losses on disposals of intangible and tangible fixed 21 1,386
assets
Capital gains on disposals of equity investments 126,321 230,967
Capital losses on disposals of equity investments 5,244 8,535
Write-backs of investment subsidies received - -
FINANCING CAPACITY 952,886 673,105
Dividend distributed 368,557 305,457
CASH-FLOW 584,329 367,648
In Thousand MAD
STATUTORY AUDITOR'S REPORT ON THE CONSOLIDATED FINANCIAL STATEMENTS
YEAR ENDED DECEMBER 31ST 2006
This is a free translation into english of the Statutory Auditor's report on the
consolidated financial statements issued in the french language and is provided
solely for the convenience of english speaking readers. The Statutoruy Auditor's
report on the consolidated financial statements includes information
specifically required by Moroccan law in all audit reports.
This report on the consolidated financial statements should be read in
conjunction with, and construed in accordance with, Moroccan law and
professional auditing standards applicable in Morocco.
We have audited the consolidated balance sheet of the Group 'Banque Marocaine
pour le Commerce Exterieur' (BMCE-BANK) for the year ended December 31st 2006,
the consolidated income statement, the consolidated cash flow statement and
notes to consolidated financial statements as attached to this report. These
consolidated financial statements have been prepared under management of
BMCE-BANK responsibility. Our role is to express an opinion on these
consolidated financial statements based on our audit.
We conducted our audit in accordance with the professional standards applicable
in Morocco. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the consolidated financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the consolidated financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by the management, as well as evaluating the overall
consolidated financial statements presentation. We believe that our audit
provides a reasonable basis for our opinion.
In our opinion, the consolidated financial statements as referred above of
BMCE-BANK for the year ended December 31st 2006, give, in all their material
aspects, a true and fair view of the assets, liabilities and financial position
of the group, and of the consolidate income of its operation and cash flows for
the year ended December 31st 2006, in accordance with accounting principles
described in the notes of financial statements.
Casablanca, May 28th , 2007
The Auditors
KPMG
Jamal Saad EL IDRISSI
Partner
ERNST & YOUNG
Ali BENNANI
Partner
Consolidated CASH FLOW STATEMENT AS OF DECEMBER 31st, 2006
2006 2005
1. (+) Operating income received from banking
operations 6 671 907 3 996 783
2. (+) Recovery of amortised debts 34 281 37 418
3. (+) Non-banking revenues received 173 765 265 381
4. ( -) Banking operating expenses paid 3 742 236 1 782 886
5. ( -) Non-banking operating expenses paid 41 863 42 104
6. ( -) General operating expenses paid 1 903 470 1 679 549
7. ( -) Corporate tax paid 456 256 331 826
I. NET CASH FLOWS FROM THE INCOME STATEMENT 736 128 463 217
Change in :
8. ( + ) Loans to credit institutions and
equivalent - 1 589 017 - 1 678 912
9. ( + ) Loans to customers - 8 114 960 - 4 516 651
10.( + ) Debt and marketable securities 978 321 1 584 094
11.( + ) Other assets 569 956 - 523 435
12.( + ) Fixed assets leased and rented out - 523 010 - 643 788
13.( + ) Liabilities to credit institutions and
equivalent - 890 241 1 166 317
14.( + ) Customer deposits 9 860 886 3 832 009
15.( + ) Debt securities issued 310 988 - 253 904
16.( + ) Other liabilities - 578 197 637 669
II. BALANCE OF CHANGES IN OPERATING ASSETS AND
LIABILITIES 24 726 - 396 601
III. NET CASH FLOWS FROM OPERATING ACTIVITIES
( I + II ) 760 854 66 616
17.(+) Revenues from equity investments 593 674 1 281 302
18.(+) Revenues from disposals of intangible and
tangible fixed assets 20 081 30 288
19.(-) Aquisitions of equity invetsments 212 894 92 232
20.(-) Acquisitions of intangible and tangible
fixed assets 317 118 278 675
21.(+) Interests received 240 419 468 216
22.(+) Dividends received 122 710 94 327
IV. NET CASH FLOWS FROM INVESTMENT ACTIVITIES 446 872 1 503 226
Change in :
23.(+) Subsidies, public funds and special - -
guarantee funds received
24.(+) Issue of subordinated debts - 500 000
25.(+) Stock issues
26.( -) Repayment of shareholders equity and
equivalent
27.( -) Interests paid 45 916 78 661
28.( -) Dividends paid 368 557 305 457
V. NET CASH FLOWS FROM FINANCING ACTIVITIES - 414 473 115 882
VI.NET CHANGE IN CASH ( III + IV + V ) 793 253 1 685 724
VII.CASH & CASH EQUIVALENT AT BEGINNING OF YEAR 7 090 275 5 404 551
VIII .CASH & CASH EQUIVALENT AT YEAR-END 7 883 528 7 090 275
In Thousand MAD
LIST OF CONSOLIDATED COMPANIES AS OF DECEMBER 31st, 2006
Contribution
to
% of % of consolidated Method of
Name Address Share Capital control interests income consolidation
MAROC FACTORING 243, Bd 15 000 000 95.00% 95.00% 10 099 Full Consolidation (F.C)
Mohammed V
Casablanca
SALAFIN ZENITH 103 000 000 97.09% 97.09% 66 863 F.C
MILLENIUM
Immeuble 8
Sidi
Maarouf
Casablanca
MAGHREBAIL 45, Bd My 102 532 000 35.90% 35.90% 19 479 F.C
Youssef
Casablanca
BMCE
INTERNATIONAL MADRID € 18 030 000 87.50% 87.00% 7 949 F.C
ESPAGNE
PALIER BMCE
CAPITAL Tour BMCE 100 000 000 100.00% 100.00% 1 332 F.C
BANK RP
Hassan II
Casa
BMCE CAPITAL
BOURSE Tour BMCE 10 000 000 100.00% 100.00% 21 164 F.C
BANK RP
Hassan II
Casa
BMCE CAPITAL
GESTION Tour BMCE 5 000 000 100.00% 100.00% 26 438 F.C
BANK RP
Hassan II
Casa
LCB BRAZZAVILLE Fcfa 4 000 000 25.00% 25.00% 7 419 F.C
CONGO 000
Medi Capital
PLC Londres Pounds 5 000 100.00% 100.00% -47 798 F.C
000
CFM 5/7 Rue 114 862 500 33.33% 33.33% 6 384 Equity Method (E.M)
Ibnou
Toufail
Casablanca
ACMAR 37, Bd 50 000 000 20.00% 20.00% 1 275 E.M
Abdellatif
ben Kaddour
BDM BAMAKO MALI Fcfa 3 759 560 20.73% 27.38% 13 873 E.M
000
LIST OF COMPANIES included AND excluded from the consolidation from January 1st
to 31st December 2006
Name Adress
Included companies
Medi Capital Bank PLC London, United Kingdom
Excluded companies
LIST OF COMPANIES left outside the consolidation LIST AS OF DECEMBER 31st, 2006
Name Last Net % of % of Last result Reasons
shareholders' accounting control interests available behind the
equity value of exclusion
available shares from the
held consolidation
list
Martco Not - 20% 20% zero net
Disponible accounting
value
Eurocheque
Maroc Not 144 29% 29% 598559.36 Part in the
Disponible net situation
below the
fixed
threshold
(in (Year end-
liquidation) 2001)
Docuprint 8342728.54 4000 100% 100% 2855672.29 Part in the
net situation
below the
fixed
threshold
(Year-end (Year- end
2005) 2001)
Consultitres 2645091.38 500 50% 50% 67397.61 Part in the
net situation
below the
fixed
threshold
(Year-end (Year- end
2001, in 2001)
liquidation)
DETAILS OF OTHER ASSETS AS OF DECEMBER 31ST, 2006
HEADING AMOUNT
OPTIONAL INSTRUMENTS 76,551
Miscellaneous transactions on 3,226 Coupons receivable
securities (debit)
Sums settled to be recovered from 69,887 Losses on exchange BIRD (state)
securities issuers
Other settlement accounts 3,438 Premiums paid on exchange option
concerning transactions on securities
OTHER DEBTORS 717,415
- Sums due by the state 426,106 Deductible VAT, advances corp Tax,
TPPRF state and exchange loss
receivable from the treasury
- Sums due by provident companies 9,682
- Receivable from staff 13,864 Advances to staff
- Receivable for non-banking 118,095 Credits held by subsidiaries on
services non banking services
- Other debtors 149,668 Deposits and guarantees and
Directors' shares
OTHER SECURITIES AND ASSETS 6,086
- Other securities and assets 6,086 Stock of supplies
CURRENCIES ADJUSTMENT ACOUNTS 37,506
CURRENCIES AND SECURITIES 24,830
DISCREPANCY ACCOUNTS (DEBIT)
Potential losses on hedging -
transactions non settled
Differed losses on hedging 24,830
transactions non settled
DEFFERED EXPENSES 3,516 Capital increase and
establishment fees
LIAISON ACCOUNTS BETWEEN THE HEAD 149,865
OFFICE, BRANCHES AND AGENCIES IN
MOROCCO (DEBIT)
Accrued income and prepayment 132,014
- Accrued income 126,488
- Prepayment 5,526
Transitory accounts 269,593
Non performing loans on
miscellaneous transactions
Provisions for non performing 91,402
loans on miscellaneous
transactions
Differed taxes 27,530
TOTAL 1,538,308
In Thousand MAD
LOANS TO CREDIT INSTITUTIONS AND EQUIVALENT AS OF DECEMBER 31ST, 2006
Other credit
Claims Bank Al-Maghrib institutions and
Treasury and Banks in equivalent in Foreign credit Total Total
Giro accounts Morocco Morocco institutions 2006 2005
ORDINARY ACCOUNTS IN 6 950 793 283 160 481 750 1 696 005 9 411 708 9 313 427
DEBIT
SECURITIES RECEIVED AS 322 921 0 322 921 300 173
PLEDGES
- Overnight 0 0
- Time 322 921 322 921 300 173
SHORT-TERM LOANS 1 230 000 421 234 700 155 3 079 516 5 430 905 3 872 369
- Overnight 1 230 000 130 900 682 806 2 043 706 1 000 000
- Time 290 334 17 349 3 079 516 3 387 199 2 872 369
FINANCIAL LOANS 764 623 3 035 080 317 785 4 117 498 3 410 940
OTHER LOANS 2 895 759 0 7 850 2 903 808 2 921 746
RECEIVABLES ACCRUED 19 456 1 750 21 206 6 922
INTEREST
NON PERFORMING LOANS
TOTAL 11 096 008 1 793 688 4 216 995 5 101 156 22 207 847 19 825 577
In Thousand MAD
LOANS AND ADVANCES TO CUSTOMERS AS OF DECEMEBR 31st , 2006
Claims Private sector
Financial Non financial Other Total Total
Public sector companies companies customers 2006 2005
SHORT-TERM LOANS 2,074,888 859,593 10,976,514 1,326,910 15,237,905 13,892,950
- Deposits accounts 1,807,152 259,593 5,378,417 693,894 8,139,056 8,640,641
in debit
- Commercial loans in 0 1,614,625 16,716 1,631,341 1,239,260
Morocco
- Export loans 0 243,546 243,546 618,143
- Other cash loans 267,736 600,000 3,739,926 616,300 5,223,962 3,394,906
CONSUMER LOANS 1,138 37,482 3,614,734 3,653,354 2,616,564
EQUIPMENT LOANS 698,502 7,095,358 113,014 7,906,874 6,418,544
MORTGAGE LOANS 167,286 183,202 7,389,078 7,739,566 5,108,958
OTHER LOANS 21,843 1,873,847 2,538,501 96,513 4,330,704 2,400,586
ADVANCES ACQUIRED BY 742,716 679,767
FACTORING
RECEIVABLE ACCRUED 399 921 1,320 80,433
INTEREST
NON PERFORMING LOANS 5,378 7,822 227,386 300,811 541,397 778,125
- Substandard loans 6 5,157 54,640 59,803 12,313
- Doubtful loans 46 18,579 66,668 85,293 16,302
- Loss Loans 5,378 7,770 203,650 179,503 396,301 749,510
TOTAL 2,969,035 2,541,264 21,055,443 12,841,981 40,153,836 31,975,927
In Thousand MAD
BREAKDOWN OF TRANSACTION & MARKETABLE SECURITIES AND INVESTMENT SECURITIES
AS OF DECEMBER 31st , 2006
Credit Private issuers
institutions and Total Total
equivalent Public issuers Financial Non financial 2005 2005
QUOTED SECURITIES 1,477,838 2,408,118 6,615,392 204 10,471,908 10,489,888
- Treasury bonds & - 2,408,118 2,408,118 6,495,901
equivalent securities
- Bonds 47,500 - 47,500 -
- Other debts securities 600,029 - 144,226 0 744,255 1,181,435
- Title deeds 800,309 - 6,471,166 204 7,271,679 2,812,552
UNQUOTED SECURITIES 550,724 548,338 0 97 346 1,196,408 2,131,305
- Treasury bonds & - 422,820 422,820 357,440
equivalent securities
- Bonds 0 125,518 0 0 125,518 156,368
- Other debt securities 550,724 - 97,346 648,070 1,617,497
- Title deeds - - - -
ACCRUED INTEREST 53,399 - 53,399 78,487
TOTAL 2,051,961 2,956,456 6,615,392 97,550 11,721,359 12,699,680
In Thousand MAD
EQUITY INVESTMENTS AS OF DECEMEBR 31st , 2006
Name of the issuing Sector of activity Number of Equity Overall
company shares Share Capital holding acquisition
as % price Provisions Net Book
Value
Equity Holdings
accounted for by equity
methods
Banque de Developpement Foreign credit 102 926 3 759 560 000 CFA 27.38 127 085 000,00 127 085 000,00
du Mali institution
Societe Casa Finance Financial 382 876 114 862 500 33.33 47 520 000,00 47 520 000,00
Market institution
ACMAR Insurance & 100 010 50 000 000 20.00 10 029 000,00 10 029 000,00
Service
Equity holdings 184 634 000,00 0.00 184 634 000,00
accounted by equity
methods
EQUITY HOLDINGS
RMA Watanya Insurance 1 774 869 1 774 400 800 10.00 700 305 306,63 700 305 306,63
Risma Tourism 219 312 489 077 000 4.48 34 881 710,00 34 881 710,00
Tanger Zone Franche Development 135 000 105 000 000 12,86 13 500 000,00 13 500 000,00
company
Centre Monetique Electronic payment 110 000 98 200 000 11.2 11 000 000,00 11 000 000,00
Interbancaire management
EMAT Holding company 60 000 30 000 20.00 6 000 000,00 6 000 000.00 0,00
Moroccan information Real Estate 12.28 5 650 000,00 5 650 000,00
Techno Parc Cie management techno
park 56 500 46 000
Global Network Systems Data processing 26 500 26 500 000 10.00 2 650 000,00 742 000.00 1 908 000,00
Ste Conseil Ingenierie Engineering 36 668 18 772 000 19.53 2 000 000,00 2 000 000,00
et Developpement consultant
Ste d'amenagement du Development 10 000 60 429 000 1.65 1 000 000,00 1 000 000,00
Parc Industrie company
MARTKO( Maghreb Arab Financial 12 000 600 000 USD 20.00 970 638,00 970 638.00 0,00
Trading Cdegrees) institution
Ste IPE Publishing & 4 000 4 000 000 10.00 400 000,00 400 000,00
printing
Ste Recours Debt collection 3 750 2 500 000 15.00 375 000,00 375 000,00
Eurocheque Maroc Means of payment 1 436 5 000 000 28.72 143 900,00 143 900,00
Titles held by 57 293 000,00 57 293 000,00
subsidiaries
Equity Holdings 836 169 554.83 7 712 638.00 828 456 916,63
SECURITIES OF RELATED
COMPANIES
Mabanicom SCI 10 000 10 000 000 100.00 29 700 000,00 7 279 270.73 22 420 729,27
Docuprint Service company 4 000 4 000 000 100.00 4 000 000,00 4 000 000,00
BMCE Assurbank 14 250 1 500 000 95.00 1 425 000,00 1 425 000,00
Ste Consultitres Mutual fund 500 1 000 000 50.00 500 000,00 500 000.00 0,00
management
Equity holdings in 35 625 000,00 7 779 270.73 27 845 729,27
related companies
SECURITIES ACTIVITIES
OF THE PORTFOLIO
E.S.F.G Foreign credit 707 000 479 086 000 EUR 1.27 153 559 892,47 153 559 892,47
institution
E.S.I.H Foreign credit 467 250 260 400 000 EUR 1.79 152 915 585,16 152 915 585,16
institution
FINAFUND USA Investment fund 14 000 81 525 000 USD 17.5 118 391 700,00 118 391 700,00
FINAFUND EUROPE Investment fund 14 000 40 000 000 EUR 17.5 77 980 315,40 77 980 315,40
UBAE ARAB Italian Bank Foreign credit 48 220 122 319 560 EUR 4.34 73 801 824,86 73 801 824,86
institution
PROPARCO Multinational 222 750 142 560 000 EUR 2.5 39 534 702,82 39 534 702,82
credit institution
Fonds Espagnol Marco Investment fund 19 436 7 401 000 EUR 2.63 19 450 403,22 13 275 867.00 6 174 536,22
Polo Invest S.C.R
Fonds d'Investissement Investment fund 3 25 000 000 USD 12.00 18 193 868,68 18 193 868,68
Capital Morocco
AFREXIM Bank (African Foreign credit 30 146 601 000 USD 0.2 2 536 965,00 2 536 965,00
Import Export) institution
Fonds Monetaire Arabe Financial 54 500 000 000 USD 0.05 2 536 965,00 2 536 965,00
(Arab Trade Financing institution
Program)
Fonds d'Investissement Investment fund 2 687 500,00 2 687 500,00
de l'oriental
FIGOREST Investment fund 250 000,00 250 000,00
Ste CIVILE FIN FUND Equity investment 500 100 000 50.00 50 000,00 50 000,00
Securities activities
of the portfolio
661 889 722.61 13 275 867.00 648 613 855,61
OTHER EQUITY HOLDINGS
Ste Nationale des Road 16 000 3 467 628 500 0.22 7 112 000,00 2 218 433.00 4 893 567,00
Autoroutes infrastructure
La cellulose du Maroc Paper pulp 52 864 650 484 000 0.81 3 393 433,00 3 393 433,00
SMAEX Insurance & 16 900 37 500 000 4.51 1 690 000,00 1 690 000,00
service
FRUMAT Agri-industry 4 000 13 000 000 3.08 1 450 000,00 1 450 000.00 0,00
Ste Immobiliere siege Real estate 12 670 19 005 000 6.67 1 267 000,00 1 267 000,00
GPBM
BANK AL AMAL Credit institution 9 710 500 000 000 0.19 971 000,00 971 000,00
MAROCLEAR Central custodian 803 20 000 000 4.02 803 000,00 803 000,00
GECOTEX Industry 5 000 10 000 000 5.00 500 000,00 500 000,00
Societe ALLICOM Maroc Industry 20 000 000 2.5 500 000,00 500 000.00 0,00
Dar Addamane Guarantee bodies 9 610 75 000 000 0.64 480 500,00 480 500,00
Fonds de Soutien Support actions 4 805 500 000 000 0.05 240 250,00 240 250,00
Actions BAA
SINCOMAR Food-industry 494 37 440 000 0.13 49 400,00 49 400,00
SWIFT Service company 23 434 020 000 EUR 0.01 24 027,46 24 027,46
CIE immobiliere Real estate 640 20 000 000 0.32 8 500,00 8 500,00
Financiere Marocaine company
Meditelecom Telecommunication 2 8 333 368 000 0.00 200,00 200,00
Mastercard 3 634 945 536,50 945 536,50
Other Equity Holdings 19 434 846,96 4 168 433.00 15 266 413,96
CURRENT ASSOCIATED
ACCOUNTS
Meditelecom 106 610 873,38 106 610 873,38
EMAT 5 000 000,00 5 000 000,00
Attachyid Wa Al Mabani 2 728 612,50 2 728 612,50
MARTCO 1 500 000,00 1 500 000.00 0,00
Siege G.P.B.M 1 446 419,60 1 446 419,60
Allicom Maroc 552 000,00 552 000.00 0.00
Other equivalent uses 117 837 905,48 2 052 000.00 115 785 905,48
TOTAL 1 855 591 029.68 34 988 208.73 1 820 602 820.95
ASSETS LEASED UNDER FINANCE OR OPERATING LEASES WITH OPTION TO PURCHASE
FROM JANUARY 1ST TO DECEMEBR 31st , 2006
Depreciation
Gross amount at Acquisitions Disposals or Depreciation
the beginning of during the withdrawals Gross amount during the Total
Assets the year year during the year at year end year Depreciation
ASSETS LEASED UNDER FINANCE 9 124 875 2 720 169 1 164 562 10 680 482 1 861 543 4 939 532
LEASING OR STANDARD LEASE
AGREEMENTS WITH OPTION TO
PURCHASE
INTANGIBLE ASSETS LEASED UNDER
FINANCE LEASING
LEASING CONTRACTS FOR PLANT & 7 553 358 2 451 449 941 389 9 063 418 1 752 932 4 557 947
EQUIPMENT
- Leasing contracts for plant & 158 862 301 533 96 817 363 578
equipment in progress
- Leasing contracts for plant & 7 394 496 2 149 916 844 572 8 699 840 1 752 932 4 557 947
equipment leased
- Leasing contracts for plant &
equipment non-leased after
cancellation
LEASING CONTRACTS FOR REAL ESTATE 1 251 365 170 981 201 392 1 220 954 108 611 381 585
- Leasing contracts for real 59 354 90 689 45 350 104 693
estate in progress
- Leasing contracts for real 1 192 011 80 292 156 042 1 116 261 108 611 381 585
estate leased
- Leasing contracts for real
estate non-leased after
cancellation
RENTAL PAYMENTS PENDING 46 752 8 362 1 795 53 319
RESTRUCTURED RENTAL PAYMENTS
UNPAID RENTAL PAYMENTS 57 642 34 252 13 020 78 874
DOUBTFUL LOANS 215 758 55 125 6 966 263 917
ASSETS LEASED UNDER STANDARD
LEASE AGREEMENTS
Tangible assets leased under
standard leased agreements
Intangible assets leased under
standard leased agreements
Rental payment pending
Restructured rental payments
Unpaid rental payments
Doubtful rental
TOTAL 9 124 875 2 850 716 1 164 562 10 680 482 1 861 543 4 939 532
In Thousand MAD
ASSETS LEASED UNDER FINANCE OR OPERATING LEASES WITH OPTION TO PURCHASE
FROM JANUARY 1ST TO DECEMEBR 31st , 2006
Provisions
Assets Additional provisions Provisions Amount at
during the year write-backs Total Provisions year end
ASSETS LEASED UNDER FINANCE LEASING OR STANDARD 53 871 140 070 109 619 5 631 331
LEASE AGREEMENTS WITH OPTION TO PURCHASE
INTANGIBLE ASSETS LEASED UNDER FINANCE LEASING
LEASING CONTRACTS FOR PLANT & EQUIPMENT 8 522 4 496 949
- Leasing contracts for plant & equipment in 363 578
progress
- Leasing contracts for plant & equipment leased 8 522 4 133 371
- Leasing contracts for plant & equipment
non-leased after cancellation
LEASING CONTRACTS FOR REAL ESTATE 839 369
- Leasing contracts for real estate in progress 104 693
- Leasing contracts for real estate leased 734 676
- Leasing contracts for real estate non-leased
after cancellation
RENTAL PAYMENTS PENDING 53 319
RESTRUCTURED RENTAL PAYMENTS
UNPAID RENTAL PAYMENTS 78 874
DOUBTFUL LOANS 53 871 140 070 101 097 162 820
ASSETS LEASED UNDER STANDARD LEASE AGREEMENTS
Tangible assets leased under standard leased
agreements
Intangible assets leased under standard leased
agreements
Rental payment pending
Restructured rental payments
Unpaid rental payments
Doubtful rental
TOTAL 53 871 140 070 109 619 5 631 331
In Thousand MAD
TANGIBLE AND INTANGIBLE FIXED ASSETS AS OF DECEMEBR 31st , 2006
Gross amount at Disposals or
the beginning of Acquisitions during withdrawals Gross amount at
Assets the year the year during the year year end
INTANGIBLE FIXED ASSETS 165 332 75 418 250 240 500
Leasehold rights 28 458 216 250 28 424
Investment in research and development 1 134 1 134
Other operating intangible fixed assets 135 740 75 202 - 210 942
Non-operating intangible fixed assets
TANGIBLE FIXED ASSETS 3 203 240 514 796 35 765 3 682 271
Operating buildings 768 761 112 109 11 704 869 166
. Operating land 107 776 62 826 11 254 159 348
. Operating buildings, Offices 660 985 49 283 450 709 818
. Operating buildings, staff housing
OPERATING FURNITURE AND EQUIPMENT 1 336 071 226 087 7 076 1 555 082
. Operating office furniture 426 143 63 861 - 490 004
. Operating office equipment 266 774 61 124 2 028 325 870
. Computer equipment 579 799 67 557 237 647 119
. Operating vehicles 17 439 25 448 4 811 38 076
. Other operating equipment 45 916 8 097 54 013
OTHER OPERATING TANGIBLE FIXED ASSETS 808 646 84 600 165 893 081
NON-OPERATING TANGIBLE FIXED ASSETS 289 762 92 000 16 820 364 942
. Non-operating land 87 097 24 285 1 616 109 766
. Non-operating buildings 99 674 59 663 15 204 144 133
. Non-operating furniture and equipment 25 707 2 602 28 309
. Other non-operating tangible fixed 77 284 5 450 82 734
assets
TOTAL 3 368 572 590 214 36 015 3 922 771
In Thousand MAD
TANGIBLE AND INTANGIBLE FIXED ASSETS AS OF DECEMEBR 31st , 2006
Depreciation and/or provisions
Assets
Depreciation Depreciation on Net amount at
provisions at the Allowances for fixed assets the end of the
beginning of the year the year withdrawn Total year
INTANGIBLE FIXED ASSETS 71 635 28 267 42 99 860 140 640
Leasehold rights 28 424
Investment in research and 1 134
development
Other operating intangible fixed 71 635 28 267 42 99 860 111 082
assets
Non-operating intangible fixed
assets
TANGIBLE FIXED ASSETS 1 674 890 175 396 8 699 1 841 587 1 840 684
Operating buildings 166 657 23 377 86 189 948 679 218
. Operating land - 159 348
. Operating buildings, 166 657 23 377 86 189 948 519 870
Offices
. Operating buildings, staff housing
OPERATING FURNITURE AND EQUIPMENT 915 107 100 140 6 852 1 008 395 546 687
. Operating office furniture 206 693 25 577 1 807 230 463 259 541
. Operating office equipment 204 779 19 092 220 223 651 102 219
. Computer equipment 454 089 48 134 237 501 986 145 133
. Operating vehicles 15 466 2 117 4 588 12 995 25 081
. Other operating equipment 34 080 5 220 - 39 300 14 713
OTHER OPERATING TANGIBLE FIXED ASSETS 539 893 39 588 86 579 395 313 688
NON-OPERATING TANGIBLE FIXED ASSETS 53 233 12 291 1 675 63 849 301 093
. Non-operating land - 109 766
. Non-operating buildings 32 202 6 866 1 675 37 393 106 740
. Non-operating furniture and 13 522 2 215 15 737 12 572
equipment
. Other non-operating tangible 7 509 3 210 10 719 72 015
fixed assets
TOTAL 1 746 525 203 663 8 741 1 941 447 1 981 324
In Thousand MAD
LAIBILITIES TO CREDIT INSTITUTIONS & EQUIVALENTS AS OF DECEMEBR 31st , 2006
Bank Al-Maghrib, Other credit
Treasury and institutions Credit
giro current Banks in and equivalent institutions
account Morocco in Morocco abroad Total 2006 Total 2005
Debts
ORDINARY CREDIT ACCOUNTS - 255 384 2 916 277 492 535 794 1 261 070
ORDINARY CREDIT ACCOUNTS - - 1 221 668
- Overnight - - -
- Time - 1 221 668
CASH BORROWINGS 79 492 89 860 1 331 229 609 548 2 110 129 2 470 100
- Overnight 84 871 84 871 -
- Time 79 492 4 989 1 331 229 609 548 2 025 258 2 470 100
FINANCIAL BORROWINGS 111 365 1 696 426 55 159 329 633 2 192 583 823 764
OTHER DEBTS 19 453 100 969 2 527 13 136 136 085 107 081
PAYABLE ACCRUED INTERESTS 6 320 19 241 - 13 175 38 736 19 885
TOTAL 137 138 2 161 880 1 391 833 1 242 984 5 013 327 5 903 568
In Thousand MAD
CUSTOMER DEPOSITS AS OF DECEMEBR 31st , 2006
Private sector
Financial Non financial Total Total
Deposits Public sector companies companies Other companies 2006 2005
Demand credit accounts 1 501 967 1 739 013 8 083 384 23 068 525 34 392 889 28 068 167
Saving accounts 10 985 108 10 985 108 9 792 974
Time deposits 2 349 535 2 599 900 4 445 715 8 155 638 17 550 788 13 655 744
Other credit accounts (*) 2 908 301 448 538 266 465 822 193 4 445 497 6 103 153
Payable accrued interests 24 255 19 100 49 200 151 295 243 850 137 208
TOTAL 6 784 058 4 806 551 12 844 764 43 182 759 67 618 132 57 757 246
In Thousand MAD
(*) including PL 480 for KMAD 2 895 759
DETAILS OF OTHER LIABILITIES AS OF DECEMEBR 31st , 2006
LIABILITIES AMOUNT
OPTIONAL INSTRUMENTS SOLD 6 470
MISCELLANEOUS TRANSACTIONS ON SECURITIES 253 973
OTHER CREDITORS 1 164 979
State debt 758 147
Social security and provident societies debt 78 888
Staff debt 98 003
Shareholders and partners debt 29 100
Supply of goods and services 119 735
Other creditors 81 106
ACCRUAL ACCOUNTS 1 304 252
Adjustment accounts of off-balance sheet transactions
Currencies and securities differential accounts 111 574
Income from hedging instruments
-
Liaison accounts between the head office, branches and Moroccan 15 839
agencies
Expenses payable and prepaid income 121 032
Other accruals 1 055 807
TOTAL 2 729 674
In Thousand MAD
PROVISIONS FROM JANUARY 1ST TO DECEMEBR 31st , 2006
PROVISIONS Amount Amount
2005 Allowances Write-backs Other changes 2006
PROVISIONS,
DEDUCTED FROM
ASSETS ON: 2 469 563 582 929 332 957 - 131 570 2587 965
Loans to credit
institutions and
equivalent 2 065 556 517 218 251 107 - 119 438 2212 229
Loans and
advances to
customers 31 443 373 31 816
Doubtful interest 28 849 27 031 1 816
Marketable
securities 145 588 13 776 45 296 - 12 132 101 936
Equity
investments and
equivalent 198 127 51 562 9 523 240 166
Leased and rented fixed
assets
PROVISIONS
RECORDED UNDER
LIABILITIES 76 665 24 038 30 880 - 69 823
Provisions for risks
fulfilment of
commitments
Provisions for
exchange risks 15 564 17 038 30 880 1 722
Provisions for
general risks 45 845 45 845
Provisions for
retirement pensions and
similar obligations
Contingent
liabilities 15 256 7 000 22 256
TOTAL 2546 228 606 967 363 837 - 131 570 2657 788
In Thousand MAD
SUBORDINATED DEBTS AS OF DECEMEBR 31st , 2006
Affiliated companies
Credit Fiscal Fiscal
institutions & Financial Non financial Other affiliated Year Year
Headings Global Amount equivalents companies companies companies 2006 2005
Subordinated debts 1 000 000 20 000 145 000 316 000 1 000 000 1 000 000
Accrued interests 20 368 1 358
In Thousand MAD
DETAILS OF SHAREHOLDERS' EQUITY AS OF DECEMEBR 31st , 2006
SHAREHOLDERS' EQUITY- GROUP SHARE 7 047 064
Beginning shareholder's equity 6 514 820
Dividends distributed -299 455
Change in capital 0
Unrealised exchange gains/losses 10 241
Other changes -12 611
Consolidated earnings 834 069
In Thousand MAD
FROM AGGREGATED TO CONSOLIDATED SHAREHOLDERS' EQUITY AS OF DECEMEBR 31st , 2006
Shareholders' Fiscal provision Social Deferred tax Deferred tax
equity write backs Commitments Others liability assets
BMCE 6 611 171 73 358 0 - 29 054 0
Full Consolidation
BMCE CAPITAL 78 176 0
BMCE CAPITAL BOURSE 66 441 1 088 -381
BMCE CAPITAL GESTION 34 091 700 -245
SALAFIN 248 525 12 331 92 633 -38 441
BMCE INTERNATIONALE 270 660
MAROC FACTORING 88 753
LCB 104 978 0 0 0 0 0
MAGHREBAIL 380 928 1 895 0 56 457 -20 423 0
MediCapital 22 943
Equity Method
BDM 464 151
ACMAR 49 476 1 111 0 -440 0
CFM 142 575
TOTAL 8 562 868 90 483 149 090 -88 984 0
In Thousand MAD
FROM AGGREGATED TO CONSOLIDATED SHAREHOLDERS' EQUITY AS OF DECEMEBR 31st , 2006
(cont'd)
Restated Quota Consolidated
shareholders' % in in net Value of Goodwill on shareholders
equity Capital worth securities acquisition Others equity
BMCE 6 655 475 100,00% 6 655 475 6 655 475
Full Consolidation
BMCE CAPITAL 78 176 100,00% 78 176 100 000 -21 824
BMCE CAPITAL BOURSE 67 148 100,00% 67 148 17 475 2 618 52 291
BMCE CAPITAL GESTION 34 546 100,00% 34 546 6 443 28 103
SALAFIN 315 048 97,09% 305 880 100 000 205 880
BMCE INTERNATIONALE 270 660 87,50% 236 828 190 383 1 674 48 119
MAROC FACTORING 88 753 95,00% 84 315 16 209 68 106
LCB 104 978 25,00% 26 245 16 990 0 16 9 271
MAGHREBAIL 418 857 35,92% 150 453 137 010 10 617 0 24 060
MediCapital 22 943 100,00% 22 943 82 956 -60 013
Equity Method
BDM 464 151 27,38% 127 085 102 205 3 588 28 468
ACMAR 50 147 20,00% 10 029 10 000 28
CFM 142 575 33,33% 47 520 38 420 9 100
TOTAL 8 713 457 7 846 643 818 091 18 497 7 047 064
In Thousand MAD
FROM AGGREGATED TO CONSOLIDATED SHAREHOLDERS' EQUITY AS OF DECEMEBR 31st , 2006
(cont'd)
Consolidated Consolidated list Dividends Dividends Reserves
capital changes distributed received conversion spread
BMCE 6 198 514 -299 822 53 729 0
Full Consolidation
BMCE CAPITAL 17 665 -16 000
BMCE CAPITAL BOURSE 59 230 -1 224
BMCE CAPITAL GESTION 31 126
SALAFIN 158 887 -19 418
BMCE INTERNATIONALE 39 809
MAROC FACTORING -23 209
LCB 1 745 71
MAGHREBAIL 12 682 -11 125
MediCapital
Equity Method
BDM 14 935 -3 528 9 937
ACMAR -1 345
CFM 4 781 -2 067
TOTAL 6 514 820 0 -353 184 53 729 10 008
In Thousand MAD
FROM AGGREGATED TO CONSOLIDATED SHAREHOLDERS' EQUITY AS OF DECEMEBR 31st , 2006
(cont'd)
Consolidated
shareholders' Earnings Consolidated
equity before Earnings conversion capital
Others earning 2006 spread in 2006
BMCE 3 463 5 955 884 699 591 6 655 475
Full Consolidation
BMCE CAPITAL 1 665 26 438 28 103
BMCE CAPITAL BOURSE 1 58 007 10 099 68 106
BMCE CAPITAL GESTION 1 31 127 21 164 52 291
SALAFIN -453 139 017 66 863 205 880
BMCE INTERNATIONALE 297 40 106 7 949 64 48 119
MAROC FACTORING 52 -23 157 1 332 -21 824
LCB -23 1 793 7 419 58 9 271
MAGHREBAIL 3 025 4 581 19 479 24 060
MediCapital -12 215 -47 798 -60 013
Equity Method
BDM -6 861 14 483 13 873 112 28 468
ACMAR 98 -1 247 1 275 28
CFM 1 2 716 6 384 9 100
TOTAL -399 6 212 760 834 069 234 7 047 064
In Thousand MAD
FINANCING & GUARANTEE COMMITTMENTS AS OF DECEMEBR 31st , 2006
2006 2005
FINANCING AND GUARANTEE COMMITMENTS GIVEN 12 344 386 16 379 110
Financing commitments on behalf of credit institutions
and equivalent 37 985 340 518
Import letters of credit
Payment acceptances or commitments
Opening of confirmed credit
Substitution commitments on issuing securities
Irrevocable leasing commitments -
Other financing commitments given 37 985 340 518
Financing commitments on behalf of customers 5 058 687 8 069 809
Import letters of credit 3 245 270 5 915 775
Payment acceptances or commitments 628 751 578 948
Opening of confirmed letters
Substitution commitments on issuing of securities
Irrevocable leasing commitments -
Other financing commitments given 1 184 666 1 575 086
Guarantee commitments for credit institutions and
equivalent 2 075 608 2 730 804
Confirmed export letters of credit 154 384 520 450
Payment acceptances or commitments 65 553 119 737
Credit guarantees given - 15 988
Other security, endorsements and guarantees given 1 855 671 2 074 629
Non performing commitments
Guarantee commitments for customers 5 172 106 5 237 979
Credits guarantees given - 987 006
Security and guarantees given on behalf of the public
administration 3 140 453 3 011 924
Other security and guarantee given 2 031 653 1 239 049
Non performing commitments
FINANCING AND GUARANTEE COMMITMENTS RECEIVED 2 162 492 2 012 144
Financing commitments received from credit institutions
& equivalents - 172 144
Opening of confirmed credit
Substitution commitments on issuing securities
Other financing commitments received - 172 144
Guarantee commitments received from credit institutions 2 130 644 1 381 872
& equivalents
Credits guarantees 1 036 720 531 102
Other guarantees received 1 093 924 850 770
Guarantee commitments received from the Government and
various guarantees bodies 31 848 458 128
Credits guarantees 31 848 32 465
Other guarantees received - 425 663
In Thousand MAD
FORWARD EXCHANGE TRANSACTIONS AND COMMITMENTS ON DERVIVATIVES AS OF DECEMEBR
31st , 2006
Hedging operations Other transaction
Paris main Branch
2006 2005 2006 2005
FORWARD EXCHANGE OPERATIONS 6 527 744 5 671 607 88 436 640 220
Foreign currencies to be received 1 456 512 390 058 70 950 622 734
Foreign currencies to be delivered 2 945 787 2 595 510 17 486 17 486
Dirhams to be received 1 901 233 2 383 129 -
Dirhams to be delivered 224 212 302 910
Including foreign currency financial swaps
COMMITMENTS ON DERIVATIVES 2 146 169 52 716 875 301 1 338 862
Commitments on regulated fixed-income markets - - 875 301 1 338 862
Commitments on OTC fixed-income markets - 50 000
Commitments on regulated foreign exchange market - -
Commitments on OTC foreign exchange markets 2 146 169 2 716
Commitments on regulated markets in other - -
instruments
Commitments on OTC markets in other instruments - -
In Thousand MAD
NB : Established on an individual basis
BREAKDOWN OF TOTAL ASSETS, LIABILITIES, AND OFF BALANCE SHEET ITEMS IN FOREIGN
CURRENCIES AS OF DECEMEBR 31st , 2006
BALANCE SHEET 2006
ASSETS 11 881 859
Cash at bank, central bank, treasury and postal office cheques and postal office 219 458
cheques
Amounts due from credit institutions & Equivalent 4 406 587
Customer receivables 3 141 278
Trading securities, securities held for sale & investment securities 1 161 205
Other assets 1 618 238
Equity interests & similar assets 1 040 828
Subordinated receivables -
Assets leased under finance leasing or standard lease agreements
Tangible and intangible fixed assets 294 265
LIABILITIES
6 022 555
Central bank, the treasury and post office cheques
Amounts due to credit institutions and equivalent
2 675 350
Customer deposits
3 198 204
Debt securities issued
Other liabilities
149 001
Subsidies, public funds and special guarantee funds
OFF-BALANCE SHEET 3 870 794
Commitments given 3 827 013
Commitments received 43 781
In Thousand MAD
INCOME FROM TITLE INSTRUMENTS AS OF DECEMEBR 31st , 2006
TYPE OF SECURITIES INCOME RECEIVED
Securities held for sale 19 077
Equity interests 98 794
Holding in associated companies 14 026
Assets 10 678
TOTAL 142 575
In Thousand MAD
FEES AS OF DECEMEBR 31st , 2006
FEES AMOUNT
Fees received 739 806
On transactions with credit institutions 4 169
On transactions with customers 251 711
On exchange transactions 90 878
Concerning operations on the primary securities markets 1 460
On derivatives
On transactions on securities under management and custody 41 182
On means of payment 78 961
On consulting and assistance 27 124
On sales of insurance products 3 491
On other services 240 830
Fees paid 66 926
On transactions with credit institutions 1 940
On transactions with customers 814
On exchange transactions 21 207
Concerning operations on the primary securities market 11 641
On derivatives
On transactions on securities under management and custody 8 075
On means of payment 14 892
On consulting and assistance
On sales of insurance products
On other services 8 357
In Thousand MAD
EARNINGS FROM MARKET OPERATIONS AS OF DECEMEBR 31st , 2006
REVENUES 1 035 846
Gains on transactions securities -
Capital gains on disposals of marketable securities 713 608
Provision write-backs on depreciation of marketable securities 27 031
Gains on derivatives 90 501
Gains on exchange transactions 204 706
EXPENSES 245 228
Losses on transaction securities
Capital losses on disposals of marketable securities 52 762
Provisions for depreciation of marketable securities -
Losses on derivatives
98 678
Losses on exchange transactions
93 788
In Thousand MAD
GENERAL OPERATING EXPENSES AS OF DECEMEBR 31st , 2006
EXPENSES 2006 2005
Staff Expenses 1 055 029 939 287
EXPENSES 2006 2005
Taxes 41 402 37 642
EXPENSES 2006 2005
External expenses 801 029 694 783
EXPENSES 2006 2005
Allowances for depreciation and provision for intangible and 222 194 162 624
intangible fixed assets
In Thousand MAD
OTHER EVENUES & EXPENSES AS OF DECEMEBR 31st , 2006
REVENUES & EXPENSES 2006 2005
Other banking revenues and expenses 767 424 475 174
Other banking revenues and expenses 1 145 762 822 185
Other banking expenses 378 338 347 011
NON-BANKING OPERATING REVENUES AND EXPENSES 2006 2005
Produits et charges d'exploitation non bancaire 160 948 223 277
Produits d'exploitation non bancaire 173 129 265 381
Charges d'exploitation non bancaire 12 181 42 104
OTHER EXPENSES 2006 2005
Allowances for provisions and losses on irrecoverable loans 806 005 747 242
OTHER REVENUES 2006 2005
Provision write-backs and recoveries on amortised debts 480 677 380 918
In Thousand MAD
SECURITIES CONSOLIDTAED BY THE EQUITY METHOD AS OF DECEMEBR 31st , 2006
SECURITIES % OF HOLDING NET BOOK VALUE VALUE OF THE EQUITY
COMPANY
ACMAR 20.00% 10 001 10 029
BDM 27.38% 102 205 127 085
CASA FINANCE MARKET 33.33% 38 420 47 520
TOTAL 150 626 184 634
In Thousand MAD
CONSOLIDATED GOODWILL ON ACQUISITIONS AS OF DECEMEBR 31st , 2006
Gross Deprec Deprec Deprec Deprec Deprec Deprec Deprec Deprec Deprec Net
value 1998 1999 2000 2001 2002 2003 2004 2005 2006 Value
Maghrebail 35 509 -3 551 -3 551 -3 551 -3 551 -3 551 -4 484 -3 551 -3 551 -3 551 2 618
Securities
Maghrebail 10 212 - - -1 140 -902 -1 021 -1 021 -1 021 -1 021 -1 021 3 064
Securities
Maghrebail 783 -78 -78 -78 -78 -78 393
Securities
Maghrebail 1 543 -154 -154 -154 -154 928
Securities
Maghrebail 4 017 -402 3 615
Securities
BDM 6 052 -221 -989 -604 -604 -606 3 028
Securities
BDM 623 -63 560
Securities
Capital 4 362 -436 -436 -436 -436 2 618
Bourse
Securities
BMCE Madrid 1 570 -157 -157 -157 -157 -157 628
Intl
Securities
BMCE Madrid 1 164 -116 1 048
Intl
Securities
AXIS Capital 3 496 0 0 0 -350 -349 2 797
Securities
Financial 2 296 0 0 0 -230 -2 066 0
Securities
Total 65 835 -3 551 -3 551 -4 691 -4 610 -5 028 -7 320 -6 001 -8 001 -8 999 21 297
In Thousand MAD
DEBT SECURITIES ISSUED AS OF DECEMEBR 31st , 2006
Of which Non-amortised
Details amounts of
issue and
repayments
premiums
Amounts
Securities Issuing date Maturity Unit face Nominal Method of in Related Other
date value rate repayment MAD companies affiliates
Finance 06/20/2006 06/20/2011 100 5.00% IN FINE 10 000
companies
notes (CFN)
CFN 01/26/2005 01/26/2008 100 4.50% IN FINE 10 000
CFN 02/01/2005 02/01/2010 100 5.15% IN FINE 10 000
CFN 02/28/2005 02/28/2010 100 5.15% IN FINE 10 000
CFN 04/25/2005 04/25/2009 100 4.80% IN FINE 15 000
CFN 06/06/2006 06/06/2009 100 4.62% IN FINE 15 000
CFN 12/31/2004 09/14/2007 100 3.94% IN FINE 20 000
CFN 01/26/2005 01/26/2010 100 5.20% IN FINE 20 000
CFN 06/06/2006 06/06/2009 100 4.12% IN FINE 20 000
CFN 05/26/2006 05/26/2009 100 4.12% IN FINE 25 000
CFN 12/31/2004 06/11/2007 100 3.97% IN FINE 27 000
CFN 12/31/2004 11/26/2009 100 5.35% IN FINE 39 500
CFN 12/31/2004 09/14/2007 100 5% IN FINE 42 500
CFN 01/26/2005 01/26/2008 100 3.96% IN FINE 50 000
CFN 06/20/2006 06/20/2010 100 4% IN FINE 50 000
CFN 10/27/2006 10/27/2010 100 4.01% IN FINE 55 000
CFN 06/20/2006 06/20/2011 100 4.62% IN FINE 100 000
CFN 07/04/2006 07/04/2011 100 4.62% IN FINE 120 000
CFN 05/26/2006 05/26/2011 4.62% IN FINE 155 000
Bonds 03/01/2006 5.14% 130 000
Bonds 03/01/2006 5.15% 120 000
Accrued 32 734
interests
TOTAL 1 076 734
In Thousand MAD
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1
Main valuation and presentation rules for consolidated financial statements
BMCE Bank's consolidated financial statements for the financial year 2006 are
presented in accordance with the provisions of the new 'Accounting Standards for
Credit Institutions' (PCEC).
They contain the financial statements of BMCE Bank and those of the main
Moroccan and overseas subsidiaries constituting BMCE Bank Group. The financial
statements of the Moroccan subsidiaries are presented according to the rules and
valuation methods of the PCEC. The accounts of the overseas subsidiaries BMCE
INTERNATIONAL, the BANQUE DU DEVELOPPEMENT DU MALI, LA CONGOLAISE DE BANQUE and
MEDICAPITAL BANK have been prepared according to the accounting rules of the
country of origin; the necessary restatements and reclassifications have been
carried out in order that they conform with the principles of BMCE BANK Group
(cf. presentation notes of the individual financial statements).
Principles and methods of consolidation
The individual annual financial statements of BMCE BANK (aggregate accounts
grouping together the financial statements for the Domestic Activity and those
of the Paris and Banque Off Shore branches) and subsidiaries controlled by it or
over which the Group exerts notable influence form the basis of preparation of
the consolidated financial statements.
The applied consolidation methods are as follows:
Full consolidation:
This method is applied to financial companies over which the Bank has exclusive
control, including those undertaking banking related activities.
Exclusive control of a subsidiary is determined by the power to direct financial
and operational policies. It results;
• Either from holding directly or indirectly the majority of voting rights
in the subsidiary;
• Or from having a majority in the number of members of the subsidiary's
administrative, management or supervisory bodies, for two successive
financial years;
The control is presumed where BMCE BANK holds more than 40% of the subsidiary's
voting rights and no other partner holds directly on indirectly a percentage
greater than its own, in accordance with the thresholds set out by the Generally
Accepted Accounting Principles in Morocco (CGNC);
• Or from the power to exert a dominant influence over the subsidiary by
virtue of a contract or statutory clauses. A dominant influence exists when
the Group has the possibility to use or direct the use of the assets,
liabilities or off-balance sheet items in the same way as for subsidiaries
under its exclusive control.
Equity method
Companies in which the Group exerts a notable influence, namely equity interests
in which the percentage of control ranges from 20% to 40% are accounted for
under the equity method. Notable influence is the power to take part in
financial and operational policies of a subsidiary without controlling it.
Certain equity interests, meeting the criteria defined above but whose
importance in relation to the consolidated accounts is not significant, have not
been consolidated (cf. Note 2).
Foreign currency translation
Balance sheet and off-balance sheet items of BMCE INTERNATIONAL, LA CONGOLAISE
DE BANQUE and MEDICAPITAL BANK are translated on the basis of exchange rates
prevailing at the closing date. Items of income and expenditure are translated
on the basis of average exchange rates during the period. Shareholders' equity
is valued at its historical value. Translation differences between the closing
rate and historical value are recorded in a translation reserve in consolidated
shareholders' equity.
Main restatements
The main restatements made in preparing the consolidated accounts concern the
following items :
Goodwill
Goodwill, recorded as an asset or liability, represents the difference, not
posted to a balance sheet item, between the purchase consideration and share of
the fair value of net assets at the date of purchase of the consolidated
securities. Goodwill is amortised over a fixed period determined by the nature
of the activity of the acquired company, the assumptions made and the objectives
set at the time of acquisition.
Amortisation is spread out over a 10-year period.
Leasing and rental commitments
This heading includes leasing operations, leases with an option to purchase or
equivalent and simple rental. Rental operations equivalent to leases are those
operations intended to finance goods for which the lessor does not have the
intention of maintaining ownership at the end of the lease.
Leasing operations, leases with an option to purchase or equivalent are
recorded in the consolidated balance sheet as finance leases, that is, for the
total amount of rents receivable, less interest included in these rents. These
amounts are substituted for those which are determined according to fiscal rules
and the hidden reserve is recorded in the consolidated reserves for an amount
net of deferred taxes.
Accrued interest included in the rents due is recorded in a receivables account
as a contra to the income statement entry. The method of provisioning for
leasing operations and equivalent is identical to that for receivables from
credit institutions and customers.
Fixed properties acquired by lease:
BMCE fixed properties acquired by lease have been subjected to a restatement
consisting on the activation of those assets on the balance sheet, while making
the distinction between non depreciable elements (lands) and depreciable
elements (constructions). These corrections have led to a restatement on the
income statement, distinguishing the financial cost from the allowances for
depreciation. Impacts on the net profit and the shareholder's equity are noted
by the means of the consolidated accounting entries while taking into account
the fiscal impact (deferred taxation).
Elimination of intra-group entries
All operations between Group companies consolidated under the full consolidation
method and which have a material impact on or off the balance sheet and on the
income statement have been eliminated.
These eliminations concern two types of operation:
- Those which have an impact on consolidated income or consolidated reserves
(in particular dividends between Group companies),
- And those which have no bearing (reciprocal accounts of the balance sheet
and income statement).
Elimination of fiscal provisions
For each consolidated subsidiary, all the provisions designed to reduce the tax
burden (deferred taxation operations) have been eliminated, for example,
provisions for investment, for staff housing and derogatory depreciation.
Taxation
- Current taxation:
The standard rate of corporate tax for credit institutions is 39.6% on income
earned in Morocco with the exception of BMCE Bank's subsidiary, BMCE Banque
Off-shore, which was tax-exempt until December 31st, 2001. Since January 1st,
2002, this entity has been subject to taxation as applied to offshore banks with
tax exemption for the first USD 25,000 of income.
The Paris Branch is subject to corporate taxation according to the rules and
rates applicable in France where the standard rate is 33.33%. Concerning the
taxation of other subsidiaries, besides insurance companies for which the rate
is identical to that for the banking sector, the standard rate of corporate tax
is 35%.
It should be noted that for MEDICAPITAL BANK, subject to the U.K. GAAP, the
applicable taxation rules are in accordance with the requirements of
consolidation.
- Deferred taxation
Deferred taxation is stated in the accounts to account for timing differences in
the carrying amount and the value for tax purposes of certain balance sheet
items. Deferred taxes are recognised using the liability method by which a
change to tax rates will result in an amendment to deferred taxes stated in
previous years. The corresponding effect is recorded in the income statement as
an increase or decrease in the deferred tax expense.
NOTE 2
Scope of consolidation at December 31st 2006
The consolidated accounts at December 31st, 2006 include the individual accounts
of BMCE BANK and those of its most significant subsidiaries. The following eight
subsidiaries are exclusively controlled by BMCE Bank :
• MAROC FACTORING
• SALAFIN
• MAGHREBAIL
• BMCE CAPITAL
• BMCE INTERNATIONAL
• BMCE CAPITAL BOURSE
• BMCE CAPITAL GESTION
• LA CONGOLAISE DE BANQUE
• MEDICAPITAL BANK
BMCE Bank likewise exerts notable influence on the following three subsidiaries:
• Casablanca Finance Market
• ACMAR
• Banque de Developpement du Mali
This scope of consolidation, which includes all the companies which meet the
above criteria, excludes not-for-profit real estate companies in that the
financing granted to them recorded in the Group's balance sheet, reflects the
reality of the risks assumed and is more representative of the Group's financial
activity.
Changes to the scope of consolidation:
MEDICAPITAL BANK, the London-based subsidiary of the Bank, has been included in
the scope of consolidation.
Excluded from the consolidation list
The following four subsidiaries are also excluded from the scope of
consolidation for the reasons outlined below:
• DOCUPRINT
• STE CONSULTITRES
• EUROCHEQUE MAROC.
• MARTCO
For the following reasons:
- DOCUPRINT:
Wholly-owned subsidiary. The share in the net worth is below the threshold fixed
for its consolidation under the consolidation method.
- STE CONSULTITRES:
50%-owned subsidiary. The share in the net worth is below the threshold fixed
for its consolidation under the consolidation method.
- EUROCHEQUE MAROC:
28.72%-owned subsidiary. The share in the net worth is below the threshold fixed
for its consolidation under the consolidation method.
- MARTCO:
20%-owned subsidiary. The net book value of this subsidiary is nil.
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