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BMCE BANK GROUP'S

FINANCIAL COMMUNICATION

1st Results Announcement under IAS/IFRS Standards

SUBSTANTIAL PERFORMANCES FOR BMCE BANK GROUP

 

The Board of Directors of BMCE Bank, chaired by Mr. Othman BENJELLOUN, was held Thursday, September 25, 2008, at the Bank's Head Office in Casablanca. It examined the Bank's activities during the first half of 2008 and closed the related accounts.

The first half of 2008 results are presented under IAS/IFRS standards, as well as those of the first half of 2007 for comparison purposes.

 A complete version of the IAS/IFRS financial statements in French is available on the bank's website www.bmcebank.ma. The English version will be soon posted.

As of June 30, 2008	•	Strong growth in Earnings, with a consolidated Gross Operating Income increasing by more than +66%.
CONSOLIDATED TOTAL ASSETS
+45%	•	Strong growth in Earnings, with a consolidated Gross Operating Income increasing by more than +66%.
MAD 158.5 billion
NET EARNINGS
GROUP SHARE	•	International Activities, a new growth lever through the acquisition of Bank of Africa and the start of MediCapital Bank’s business operations.
+24%
MAD 469 million
CONSOLIDATED NET BANKING INCOME	•	Continuation of the branch network extension along with a sustained development of the Bank’s and its financial subsidiaries’ activities in Morocco.
+59%
MAD 3.1 billion	•	Stock split in the nominal value of BMCE Bank shares from MAD 100 to MAD 10

 

 

SOLID FINANCIAL PERFORMANCES 

A +24% INCREASE IN NET EARNINGS -GROUP SHARE- 

STRONG GROWTH IN CONSOLIDATED EARNINGS 

• +23.5% increase in Net Earnings -Group Share- to MAD 469.1 million, especially driven by the international activities' strong performance, after including Bank of Africa on the consolidation list. On a constant basis, this growth stands at +14.4%.

• Substantial rise of +90% in the Group's consolidated Net earnings to about MAD 822 million.

• Strong growth of +59% in consolidated Net Banking Income amounting to more than MAD 3 billion versus MAD 1.9 billion as of June 30, 2007.

• Improvement in the cost to income ratio by 2 percentage points at 55%, compared with the 2007 first half. This is in a context where the bank is making large investments in terms of branch extension in Morocco and international development abroad.  

Pursuit of the Bank's Development in Morocco

• Branch extension through the opening of 31 new branches at the end of August 2008, reflecting the Bank's contribution to the process of increasing banking penetration throughout the kingdom.

• Remarkable increases in net earnings and net banking income generated by the Bank in Morocco, i.e., +37% and +15%, respectively, excluding the capital gains realised during the 2007 first half.

• +15% growth in Customer Deposits to MAD 84 billion. The resources structure enhanced as the share of non interest bearing accounts went up from 55.4% in June 2007 to 56.4% in June 2008.

• +19.2% rise in Customer Loans to MAD 45.1 billion.

SUSTAINED GROWTH IN TOTAL ASSETS

• +45% growth in consolidated total assets, attaining a record level of MAD 158.5 billion in June 2008.

SOUND RISK MANAGEMENT

• Significant improvement in the NPL ratio -Domestic Activity- by 1.32 percentage points at 3.85% versus 7.4% for the sector. Compared to its peers, BMCE Bank enjoys one of the lowest NPL ratios in the industry.

• Continued reinforcement of risk management under Basel II, with (i) the carrying out of operational risk mapping and (ii) the implementation of a procedures manual relating to market activities.

Strengthening of the shareholders' Equity 

• Debt Issues in local and foreign currency to finance the Bank's expansion strategy in Morocco and abroad:

• Perpetual subordinated debt of € 70 million concluded with IFC, a member of the World Bank Group;

• Subordinated debt of € 50 million contracted with Proparco, a subsidiary of AFD (Agence Française de Développement);

• Subordinated debt of MAD 1 billion, raised from a score of institutional investors.

DYNAMIC DEBT COLLECTION PROCESS

• Performing debt collection activity, recovering about MAD 260 million worth of NPL assets.

BMCE BANK STOCK ON A HIGH TREND

• +10% increase in BMCE Bank stock price during the first half of 2008, attaining MAD 3,090 as of June 30, 2008, outperforming the banking index, which increased by +5.8%.

• Split in the nominal value of BMCE Bank shares from MAD 100 to MAD 10, approved by the Extraordinary General Meeting of September 5, 2008. This stock split will increase the number of shares and make it more accessible to a larger pool of investors.

• The first listing of the stock at its new nominal value started on Monday, September 22, 2008.

A Multidimensional DYNAMICS 

OF GROWTH AND VALUE CREATION

BMCE Bank's activity in Morocco: Consolidated position on the different market segments

Outstanding Achievements on the Individuals and Professionals Market

• Substantial increase of +43.2% in mortgage loans to 13.2 billion, inducing a gain in market share from 11.8% to 13.2%.

• Market share gains of +0.5 and +0.1 percentage points in checking and savings accounts, standing at 13.2% and 20.4%, respectively, in a highly competitive environment.

• +15% increase in MLA (Moroccans living Abroad) deposits compared with 9% for the sector, inducing a 0.55 percentage point gain in market share to 10.5%, having consolidated the Bank's position on that segment.

• +10% rise in the number of banking cads to about 919,000 by end of June 2008. 

• Reinforced position on the professionals market segment, with an outstanding increase of +418% in Habitat Pro loans, brought about by the implementation of ''CAP Client Professionals'' Project.  

Satisfactory Performance on the Enterprises and SME Market

• Continued fostering of relations with enterprises, as shown by a +44% increase in investment loans and +6% in current accounts. 

•  Growth in the foreign trade activity of BMCE Bank as import and export service volumes went up by +30% and +12%, respectively. 

Reinforced position on the Corporate Market

• +20% rise in the net banking income generated by the corporate activity. 

•  Sustained growth of +60% in corporate deposits from MAD 8 billion to MAD 13 billion. 

• Development of the project finance activity, marked by a growing presence on the infrastructure segment and by the introduction of new instruments for LBO financing.

Certified quality for market activities

• Obtaining by BMCE Capital Markets of ISO certification, first of its kind in Morocco, for the quality of its Trading Room activities, that is a consecration of its professionalism and expertise.

• +30% growth in assets under custody to MAD 149 billion, coupled with a +27.6% increase in fees generated by this activity.

New momentum IN INTERNATIONAL ACTIVITIES

• Rising contribution of international activities, representing nearly 15% of Net Earnings -Group Share- in June 2008.

• Promising start of MediCapital Bank's business operations, with a progressive improvement in its financial situation.

• Increase of more than 60% in the contribution of BMCE Madrid.  

• Outstanding performance for the Group's African subsidiaries; Bank of Africa's contribution accounts for about 9.5% of net earnings -Group share- and that of la Congolaise de Banque went up by +32.5%.

SPECIALISED FINANCIAL SERVICES: strengthened PERFORMANCE

• Sustained growth of +26.7% in Salafin's net earnings to MAD 54 million, as of June 30, 2008, following an increase in its loans production by +47%.

   

• Significant rises in Maghrebail's Net Banking Income and Net Earnings by +35% and +19%, respectively. 

• Increase by +14% in Maroc Factoring's contribution to BMCE Bank Group's consolidated net banking income, from MAD 15.9 million in June 2007 to MAD 18.1 million in June 2008.

ASSET MANAGEMENT AND OTHER INVESTMENT BANKING ACTIVITIES: A SEMESTER UNDER THE SIGN OF INNOVATION AND LEADERSHIP

• Considerable growth of about +36% in BMCE Capital Gestion's assets under management to MAD 2.23 billion, inducing a +2.8 percentage points gain in market share. New funds were also launched. 

• Obtaining of BMCE Capital gestion of the Asset Management Trophy for the best monetary fund of the marketplace (FCP Capital Monétaire). 

• Strengthening of BMCE Capital Bourse position in a relatively difficult market, as evidenced by a business volume of around MAD 23 billion on the Equity market, bringing about its market share to 21.4%.

   

NEXT RELEASES FOR 2008

October

• Distribution of the Developed Financial Press Release for the first half of 2008.

• Publication of the 2007 Annual Report in English.

• Publication of the 2008 First Half Report.  

November

• Publication of the 2007 Annual Report in Arabic. 

ENDIR EASEXESPPFFE