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CIH Bank: 450 MMAD profit in 2018

CIH Bank achieved a net income (Group share) of 455 million dirhams (MMAD) in 2018, an increase of 4.4% compared to fiscal year 2017 announced the president Managing Director of the Bank, Ahmed Rahhou.

Thus, CIH Bank’s net profit amounted to 447 million dirhams, marking a slight jump of 0.3% compared to 2017, said Rahhou during the presentation of the consolidated results of 2018, noting that the net result Sofac, a specialized subsidiary of CIH, posted 105.2 million dirhams, an increase of 30.5% compared to 2017.

Consolidated net banking income (NBI) rose by 10.5% compared to 2017 at MAD 2,249 million, driven by growth in the net interest margin (NIR) of 5.3% as well as the 111% market share result, said the CEO of CIH Bank, adding that in social terms, CIH Bank’s NIR and net banking income are respectively 5.9% and 9.3%. In the same vein, the NIR and Sofac’s net banking income increased by 7.4% and 11% respectively. In addition, Rahhou explained that the cost of consolidated risk stood at MAD 219 million against MAD 58.1 million in 2017, attributing this variation to the change in the cost of risk in social CIH Bank, which reached MAD 224 million against 50 MMAD in 2017. In the consolidated figures, the cost of risk rate stands at 0.45%, thus remaining in the best market standards, he said, noting that the total consolidated balance sheet was 64.9 billion dirhams, an increase of 21.1% compared to 2017.

On the commercial side, CIH BANK was able, thanks to its successful commercial strategy, to achieve a net collection of 5.1 billion dirhams of customer deposits amounting to 37 billion dirhams at the end of 2018, up by 16% compared to the end of 2017. This is the combined result of a 10.2% increase in demand deposits and 36.6% of term deposits, mainly made up of retail deposits. Customer loans, meanwhile, jumped 17.4% to 47.4 billion dirhams, compared to 2017 and non-real estate loans, in continuity with the trend of diversification of customer jobs, recorded an increase of 44 , 5% to 18.2 billion dirhams, representing 41.2% of total customer loans against 33.5% at the end of December 2017.

The Board of Directors of CIH Bank has decided to convene a Combined General Meeting to approve a capital increase of up to MAD 500 million and to propose to the General Meeting the distribution of an ordinary dividend of 14 dirhams per share, payable as from 2 July 2019.

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