Banking activity is more flourishing in Morocco than in France. While the profitability of French banks is limited to 6.2%, that of national banks in Morocco reaches 11%.
In 2018, 14 billion were collected by the 9 major Moroccan banking groups, against 9 billion, 10 years ago, says media. This figure, which makes the head spin, is around 11 billion dirhams, even if we reduce the scope to the banking activity in Morocco. The equity of these banking groups is valued at 128 billion dirhams, for a rate of return of 10.8%, against 9.8% in 2016 (124 billion in 2016). Given these results, there is every reason to believe that shareholders are benefiting from their investments, despite the constraints and regulation of the financial market.
Taking into account this rate displayed by Moroccan banks, the result is surprising with the 2017 data of the French bank. The gap is dizzying. Although these banks made 30.5 billion euros in profit, their rate of return on equity is limited to 6.2%, against 10.8% in Morocco.
As for the intermediation margin, it is more interesting in Morocco than in France. As proof, it is at 1.86%, without the other activities, against 3.87%, in Morocco. By integrating these activities, namely securities and interbank cash, the overall margin drops to 1.14% against 2.98%, almost 3 times that of French banks.
Despite high Moroccan intermediation margins, they do indeed carry a higher risk. The bank delinquency rate amounts to 7.3% of outstanding loans, compared with 3.4% in France. These non-payments are covered by provisions amounting to 69% in Morocco against 61% in France. But, in fine, and despite a high default rate, Moroccan banks manage to generate a high profitability of 10%. In the end, 60% of these profits are pocketed each year by shareholders in the form of dividends.