For the moment, most banks manage to combine the increasingly stringent requirements of regulatory capital with good growth in lending activity, at least for household customers.
In the first quarter, Crédit du Maroc (CDM) boosted its solvency with an overall ratio of 15.17% against a minimum requirement of 12%. Tier 1 reached 11.79%. The bank has more leeway to complete its Cap 2020 strategic plan.
At 6.4 billion dirhams at the end of March, shareholders’ equity was boosted by a net profit attributable to equity holders of the parent, an increase of 8.6 percent, to 125 million dirhams. This trend stems in part from a significant fall in the cost of risk (-27%) to 77 million dirhams. The control of operating expenses (+0.2%) also made it possible to fully benefit from the growth of 2.4% of the net banking income to 600 million dirhams.
The interest margin increased by 2.4% to 450 million dirhams in the first three months of the year. Commercial activity remained dynamic both for households and businesses. Outstanding home loans increased by 5.7% and 14% for consumer credit. In the corporate market, banks’ difficulty in placing long maturity credits remains strong.
On the other hand, they continue to support the financing of corporate treasuries in a still unfavorable context. The outstanding short-term financing granted by Crédit du Maroc increased by 16.5%. The growth in loan volumes partly offset the low interest rates.
The subsidiary of Crédit Agricole France improved its commissions by 6.8% to 123 million dirhams thanks to the development of the product portfolio and the acquisition of new customers. The growth of bancassurance consolidates the weight of commissions in turnover. On the other hand, the market activities business performed less well in the first quarter. Its revenues are closely linked to the health of the financial markets. They fell 5.8% to MAD 49 million.