Attijariwafa Bank Sa · CSEMA:ATW
Attijariwafa Bank Sa — FY2019 Earnings Presentation
102 slides from Attijariwafa Bank Sa's earnings presentation, December 2019
Slide 1: Financial Communication 2019
Attijariwafa bank As of 31st December 2019 Financial Communication 2019
Slide 2: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31st, 2019 Regulatory ratios as of December 31st, 2019 Attijariwafa bank share price performance 2
Slide 3: Macroeconomic environment in Africa
Macroeconomic environment in Africa GDP growth in Africa GDP growth in North and Sub-Saharan Africa (%) 2018 2019 2020F North Africa 9.6 WAEMU1 Africa 3.5% 4.0% 4.1% EMCCA 2 North Africa 4.3% 4.4% 4.3% 6.3 6.3 6.2 6.5 6.6 6.3 6.4 West Africa 3.3% 3.6% 3.6% 6.1 6.5 WAEMU1 6.5% 6.4% 6.5% 4.9 4.4 6.0 4
Slide 4: Macroeconomic environment in AWB's main African markets
Macroeconomic environment in AWB’s main African markets 2019 figures 1 3 2 4 Morocco Tunisia Mauritania Egypt Senegal Burkina-Faso North Africa GDP growth : +2.6% GDP growth :+1.5% GDP growth : +6.6% GDP growth : +5.5% GDP growth : +6.0% GDP growth : +6.0% GDP/cap (USD) : 3,538 GDP/cap (USD) : 3,565
Slide 5: Macroeconomic environment in Morocco in 2019
1 Macroeconomic environment in Morocco in 2019 Main economic indicators Economic growth 2018 2019 2020F GDP growth rate of 2.6% in 2019 Real GDP growth 2.8% 2.6% 3.8% Pick up in non-agricultural growth: +3.3% in 2019 (+0,5 pt) Agricultural GDP 2.7% -4.3% 6.2% Low inflation rate (0.2% in 2019 a
Slide 6: Drop in government bond yields in 2019
1 Drop in government bond yields in 2019 Interest rate environment Dec 2015 Dec 2016 Dec 2017 Dec 2018 Dec 2019 Interest rate 2.50% 2.25% 2.25% 2.25% 2.25% 13w 2.48% 2.19% 2.20% 2.34% 2.27% 26w 2.51% 2.24% 2.35% 2.40% 2.26% 52w 2.64% 2.38% 2.39% 2.46% 2.29% -50 to -20 bps 0 to +20 bps +5 to +14 bps
Slide 7: Moroccan financial market in 2019
1 Moroccan financial market in 2019 Financial market trends in 2019FY 2017 2018 2019 Stock exchange market’s trend in 2019: MASI 6.4% -8.3% 7.1% - 7.1% YoY increase of MASI as of 31 December MADEX 5.8% -8.6% 7.4% 2019 Trading volume (MAD bn) 69.7 52.7 75.4 Market Cap. (MAD bn) 627.0 582.2 626.7 -
Slide 8: Moroccan banking sector
1 Moroccan banking sector YoY growth X% CAGR X% +/- Deposits (MAD billion) Deposits: YoY growth CAGR 13-17 +6% CAGR 17-19 +3% +6% +3% +3% 899 925 950 6.8% 6.4% 5.9% 718 4.4% 2.9% 2.7% Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 2013 2017 2018 2019 Loans (MAD billion) Performing loans : YoY growth +3%
Slide 9: Moroccan banking sector
1 Moroccan banking sector YoY growth X% CAGR X% +/- Retail loans (1) (MAD billion) Retail loans: YoY growth CAGR 13-16 +5% CAGR 16-19 +4% +5% +4% +3% 6.7% 4.9% 4.9% 4.4% 253 263 271 3.8% 207 3.2% 2013 2017 2018 2019 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Corporate loans(2) (MAD billion) Corporate
Slide 10: Stable NPLs in Morocco since 2015
1 Stable NPLs in Morocco since 2015 NPL ratio (Moroccan banking sector) P1 P2 7,40% 7,72% 7,39% 7,38% 7,24% 6,82% 5,98% 2013 2014 2015 2016 2017 2018 2019 P1 Deterioration of NPL ratio by ~2 points between 2012 and 2016 due to several factors (economic slowdown in Europe and Morocco, soft landing of
Slide 11: Significant improvement of the macroeconomic environment in Egypt
2 Significant improvement of the macroeconomic environment in Egypt after reforms and appreciation of EGP in 2019 GDP growth Inflation Lower inflation rate in 5.9% 2018 (7.2% in January New Floating 2019) 5.5% 5.3% exchange rate regime Acceleration of in November 2016 economic 4.2% 14% 9% growth
Slide 12: Macroeconomic environment in 2019 Tunisia, Senegal and Ivory Coast
Macroeconomic environment in 2019 Tunisia, Senegal and Ivory Coast 3 Tunisia: main economic indicators 2018 2019 2020F GDP growth of 1.5% in 2019 and 2.4% in 2020F Real GDP growth 2.5% 1.5% 2.4% Inflation rate down to 6.6% in 2019 and 5.4% in 2020F Increase of Foreign currency exchange reserve
Slide 13: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31st, 2019 Regulatory ratios as of December 31st, 2019 Attijariwafa bank share price performance 13
Slide 14: 2019FY consolidated P&L
2019FY consolidated P&L Growth Rate at a (in MAD million) 2018FY 2019FY Growth Rate constant exchange rate Net banking income 22,371 23,473 4.9% 5.8% 1 Net interest income 13,995 14,937 6.7% 7.5% 2 Net fee income 5,034 5,148 2.3% 3.6% Income from market activities 3,841 3,709 -3.4% -2.9% Others -499
Slide 15: Exceptional items impacting the 2019 consolidated financial statements
Exceptional items impacting the 2019 consolidated financial statements for the first time Main items Scope of impact Impact NIGS impact NIGS change impact (MMAD) Entry into force of the new social cohesion BMET, SFC & Insurance -156 -2.7 pts tax in Morocco for 2 years (2019 and 2020) IFRS adjust
Slide 16: 2019FY key indicators
2019FY key indicators 2018FY 2019FY Net interest margin (bps)* 459 461 Non-interest income** (bps) 164 160 Cost income ratio 47.9% 47.8% NPL ratio 6.8% 6.6% Cost of risk 0.53% 0.46% RoA 1.32% 1.31% (1.38%) RoE 15.4% 14.8% Leverage 10.1x 9.9x (*) Net interest income / net customer loans; (**) Non int
Slide 17: Growth of NBI by business line
Growth of NBI by business line X% +/- MAD billion BMET Specialized Financial Companies +6.8% +4.0% 11.5 12.3 NBI 2.4 2.5 +4.9% 22.4 23.5 2018 2019 2018 2019 International Retail Banking Insurance +3.6% at a constant exchange rate +1.4% +7.9% 2018 2019 7.8 7.9 1.1 1.1 2018 2019 2018 2019 17 - 2019FY
Slide 18: Growth of Net Interest Income by business line
1 Growth of Net Interest Income by business line X% +/- MAD billion BMET Specialized Financial Companies +6.8% +3.4% 7.3 7.8 Net interest income 1.2 1.2 +6.7% 2018 2019 2018 2019 14.0 14.9 International Retail Banking Insurance +7.2% at a +5.3% constant +5.5% 2018 2019 exchange rate 4.9 5.2 0.7 0.8
Slide 19: Growth of loans by business line
1 Growth of loans by business line X% +/- MAD billion BMET Specialized Financial Companies +5.6% +2.8% 204 216 Loans 31 32 +6.1% 305 324 2018 2019 2018 2019 3.6% 3.6% 3.8% 3.8% International Retail Banking Insurance +6.8% at a +9.4% constant -2.4% 2018 2019 exchange rate 4.6% 4.6% 67 74 3 3 2018 201
Slide 20: Growth of fees by business line
2 Growth of fees by business line X% +/- MAD billion BMET Specialized Financial Companies +3.6% at a +4.3% +5.8% constant Net fee income exchange rate 2.31 2.40 +2.3% 5.03 5.15 0.57 0.60 2018 2019 2018 2019 International Retail Banking +1.6% at a -0.8% constant 2018 2019 exchange rate 2.19 2.17 2018
Slide 21: Growth of income from market activities by business line
2 Growth of income from market activities by business line X% +/- MAD billion Economic P&L of « market activities »*: BMET +19% in Morocco Specialized Financial Companies +5.0% -43.1% 2.61 2.74 Income from Market activities -3.4% 3.84 3.71 0.014 0.008 2018 2019 2018 2019 International Retail Banking
Slide 22: Evolution of Cost of Risk by business line
4 Evolution of Cost of Risk by business line X% +/- X% CoR (%) MAD million BMET Specialized Financial Companies 0.35% 0.31% 1.01% 0.77% -5.9% -20.8% Cost of Risk 754 709 0.53% 0.46% 331 262 1,724 -7.8% 1,589 2018 2019 2018 2019 International Retail Banking Insurance 0.76% 0.63% 1.96% 2.96% -10.5% +5
Slide 23: NPLs and cost of risk
4 IFRS consolidated financial statements NPLs and cost of risk NPL ratio Cost of risk (in bps) 113 83 6.8% 7.1% 7.0% 7.0% 6.8% 70 72 6.6% 50 53 46 2014 2015 2016 2017 2018 2019 Average 2014 2015 2016 2017 2018 2019 2007- 2013 23 - 2019FY Results- Attijariwafa bank
Slide 24: Customer Loans
4 Growth of customer loans and NPL ratio by business line X% +/- Xx% Contribution to net customer loans (end of period) + + = Specialized Financial International Retail BMET AWB (Consolidated loans) Companies Banking (MAD bn) 67% 10% 23% 100% 305.1 323.8 +5.6% +2.8% +9.4% +6.1% Customer Loans 204.0
Slide 25: Customer Loans: Focus on IRB
4 Growth of customer loans and NPL ratio by business line: Focus on IRB* X% +/- + + = International Retail North Africa(1) WAEMU(2) EMCCA(3) (MAD bn) Banking 67.4 73.8 +20.0% +3.4% -0.5% +9.4% Customer Loans 32.7 29.0 29.9 27.2 11.2 11.2 2018 2019 2018 2019 2018 2019 2018 2019 +10.7% at a constant e
Slide 26: Exposures, staging & coverage
Exposures, staging & coverage In MAD million, figures as of 31 Dec. 2019 GROUP Exposure at default Coverage ratio Bucket 1 Bucket 2 Bucket 3 Total Bucket 1 Bucket 2 Bucket 3 Total Loans 294 573 28 064 22 971 345 608 0,8% 14,9% 67,0% 6,3% off balance loans 140 870 9 207 496 150 572 0,4% 3,3% 20,5% 0,
Slide 27: Growth of NIGS by business line
6 Growth of NIGS by business line X% +/- +10.3% excluding MAD million BMET exceptional items* Specialized Financial Companies +13.4% excluding +1.2% +6.8% exceptional items* +8.7% excluding 3,364 3,405 exceptional Net income group share items* 545 583 5,706 5,816 +1.9% 2018 2019 2018 2019 Internatio
Slide 28: RoA by business line
RoA by business line X% +/- BMET International Retail Banking (1.95%) (1.14%) 1.95% 1.97% 1.92% 0.92% 1.08% 1.06% RoA 2013 2018 2019 2013 2018 2019 (1.38%) 1.31% 1.32% 1.31% Specialized Financial Companies Insurance 2013 2018 2019 (2.19%) 2.31% 2.07% 2.31% 1.96% (0.80%) 0.78% 0.75% 2013 2018 2019 20
Slide 29: RoA on a consolidated basis
RoA on a consolidated basis X% +/- Net banking income / assets Net interest income / assets (4.46%) 4.64% 4.39% 4.41% (2.84%) 2.74% 2.74% 2.80% 2013 2018 2019 2013 2018 2019 RoA Expenses / assets Non interest income / assets (1.38%) (1.70%) (1.72%) (1.67%) 1.31% 1.32% 1.31% (2.08%) (1.62%) 2.06% 2.1
Slide 30: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31st, 2019 Regulatory ratios as of December 31st, 2019 Attijariwafa bank share price performance 30 - 2019FY Results- Attijariwafa bank
Slide 31: Regulatory ratios
Regulatory ratios Capital Adequacy ratio Tier 1 CAR Consolidated basis 12.7% 12.6% 12.5% 13.3% 13.0% 13.0% Minimum 12.3% requirements: 12% 9.9% 10.1% 10.1% 10.8% 9.7% 10.2% 10.2% Minimum requirements Tier 1 : 9% (CET1: 8% and AT1: 1%) Capital adequacy 2013 2014 2015 2016 2017 2018 2019F Capital Adeq
Slide 32: Regulatory main recent evolutions
Regulatory main recent evolutions Regulatory / accounting main recent evolutions Recent capital evolutions - 2014: application of Basel 3: June 18: Issuance of MAD 1.5bn Tier 2 (+62 bps on • New Tier 1 eligible instrument: additional Tier 1 AWB’s CAR and +40 bps on Group’s CAR) (perpetual with loss
Slide 33: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31st, 2019 Regulatory ratios as of December 31st, 2019 Attijariwafa bank share price performance 33 - 2019FY Results- Attijariwafa bank
Slide 34: Attijariwafa bank share price performance
Attijariwafa bank share price performance Attijariwafa bank vs MASI from 12-31-12 to 02-21-20 Share price as of 31 Dec. 2019: MAD 499 - Largest market capitalization in the banking sector and 2nd largest in Morocco: MAD 104.7 billion - Attijariwafa bank shares up YoY +10.2% vs. +5.6% for the banki
Slide 35: Attijariwafa bank market indicators
Attijariwafa bank market indicators Attijariwafa bank 12/31/2017 12/31/2018 12/31/2019 02/21/2020 Share price 484 453 499 510 Year High 500 514 499 510 Year Low 396 416.5 423 483 P/B (*) 2.3x 2.1x 2.2x - P/E (*) 18.3x 16.7x 18.0x - DY 2.58% 2.87% 2.71% - Number of shares 203,527,226 209,859,679 209,
Slide 36: Back up
Back up 36 - 2019FY Results- Attijariwafa bank
Slide 37: Growth of expenses by business line
3 Growth of expenses by business line X% +/- X% Cost-Income ratio MAD million BMET Specialized Financial Companies 47.6% 47.8% 41.0% 41.1% +5.5% at a +7.4% +4.2% constant Expenses exchange rate 5,465 5,870 47.9% 47.8% 10,713 11,223 991 1,033 +4.8% 2018 2019 2018 2019 International Retail Banking Ins
Slide 38: Growth of NI by business line
5 Growth of NI by business line X% +/- MAD million BMET Specialized Financial Companies +1.3% +7.3% +4.2% at a 3,391 3,433 constant Net income exchange rate 687 737 +3.2% 6,735 6,951 2018 2019 2018 2019 International Retail Banking Insurance +7.5% at a +4.5% constant +5.7% 2018 2019 exchange rate 2,
Slide 39: Main contributors to loans in 2019FY
1 Main contributors to loans in 2019FY in MAD million Growth Rate 2019FY Subsidiaries Weight Growth Rate at a constant contributions exchange rate Attijariwafa bank (Morocco) 206,945 63.9% 3.6% 3.6% Attijari bank Tunisie (Tunisia) 20,665 6.4% 14.1% 6.4% Wafasalaf (Morocco) 15,535 4.8% 3.9% 3.9% SIB
Slide 40: Main contributors to net banking income in 2019FY
Main contributors to net banking income in 2019FY in MAD million Growth Rate Subsidiaries 2019FY Contributions Weight Growth Rate at a constant exchange rate Attijariwafa bank (Morocco) 11,344 47.5% 6.2% 6.2% Attijari bank Tunisie (Tunisia) 1,606 6.7% 5.3% 13.7% CBAO (Senegal) 1,278 5.4% 7.1% 10.1%
Slide 41: Main contributors to net income group share in 2019FY
6 Main contributors to net income group share in 2019FY in MAD million Growth rate at a Subsidiaries 2019FY contributions Weight Growyh rate constant exchange rate Attijariwafa bank (Morocco) 3,419 58.8% 4.8% 4.8% Attijari bank Tunisie (Tunisia) 328 5.6% 13.3% 22.3% CBAO (Senegal) 296 5.1% -4.9% -2.
Slide 42: RAROC by business line
RAROC by business line X% +/- BMET International Retail Banking (16.1%) (12.2%) 15.9% 16.4% 15.8% 12.5% 11.4% 10.7% RAROC 2013 2018 2019 2013 2018 2019 (14.7%) 14.6% 14.8% 14.0% Specialized Financial Companies (19.3%) 19.7% 17.4% 18.1% 2013 2018 2019 RAROC = Net Income / [12% x Risk Weighted Assets]
Slide 43: RoA - Banking in Morocco, Europe and Offshore
RoA - Banking in Morocco, Europe and Offshore X% +/- Net banking income / assets Net interest income / assets (3.82%) 3.82% 3.64% 3.78% (2.44%) 2.52% 2.32% 2.40% 2013 2018 2019 2013 2018 2019 RoA Expenses / assets Non interest income / assets (1.14%) 1.08% 1.06% (1.76%) (1.38%) 0.92% 1.70% 1.73% 1.8
Slide 44: RoA - International Retail Banking
RoA - International Retail Banking X% +/- Net banking income / assets Net interest income / assets (6.25%) 6.28% 6.56% 6.20% (4.11%) 3.63% 4.14% 4.06% 2013 2018 2019 2013 2018 2019 RoA Expenses / assets Non interest income / assets (1.95%) 1.95% 1.97% 1.92% (3.17%) (2.14%) 3.53% 3.34% 3.15% 2.65% 2.
Slide 45: RoA - Specialized Financial Companies
RoA - Specialized Financial Companies X% +/- Net banking income / assets Net interest income / assets (7.07%) 7.81% 6.89% 7.05% (3.37%) 3.88% 3.29% 3.35% 2013 2018 2019 2013 2018 2019 RoA Expenses / assets Non interest income / assets (2.19%) 2.31% 1.96% 2.07% (2.88%) (3.70%) 3.93% 3.60% 3.70% 3.19%
Slide 46: RoA - Insurance
RoA - Insurance X% +/- Net banking income / assets Net interest income / assets 6.31% (2.58%) (1.76%) 2.62% 2.58% 1.64% 1.83% 1.76% 2013 2018 2019 2013 2018 2019 RoA Expenses / assets Non interest income / assets 2.31% (0.80%) 4.67% (1.53%) 0.78% 0.75% (0.82%) 1.86% 1.72% 1.54% 0.79% 0.82% 2013 2018
Slide 47: BMET: Cost of risk by business line 2011-2019
Cost of risk by business line between 2011 and 2019 xx% Contribution to gross customer loans (end of period) 71% 71% 70% 69% 66% 66% 64% 66% 66% 1.15% 0.86% 0.76% 0.76% 0.67% BMET 0.37% 0.38% 0.35% 0.31% 2011 2012 2013 2014 2015 2016 2017 2018 2019 Cost of risk 18% 17% 19% 19% 22% 23% 24% 23% 23% 1.
Slide 48: INSURANCE: RoA by business line 2011-2019
RoA by business line between 2011 and 2019 xx% Contribution to total assets (end of period) 66% 68% 67% 66% 64% 62% 61% 62% 61% 1.2% 1.1% 0.9% 1.0% 1.0% 1.0% 1.0% 1.1% 1.1% BMET 2011 2012 2013 2014 2015 2016 2017 2018 2019 19% 18% 20% 20% 22% 22% 24% 23% 24% 1.7% 1.6% 2.0% 1.7% 1.9% 2.0% 1.9% RoA 1.
Slide 49: BMET: Net interest margin by business line 2011-2019
Net interest margin by business line between 2011 and 2019 72% 72% 71% 70% 66% 66% 65% 67% 67% xx% Contribution to net customer loans (end of period) 3.8% 3.6% 3.7% 3.7% 4.0% 3.8% 3.8% 3.6% 3.6% BMET 2011 2012 2013 2014 2015 2016 2017 2018 2019 Net interest margin/ customer loans (end of period) 17%
Slide 50: BMET: Net fee income by business line 2011-2019
Net fee income by business line between 2011 and 2019 xx% Contribution to net banking income 54% 55% 54% 56% 54% 53% 50% 50% 51% 23.9% 19.1% 18.7% 18.2% 20.3% 21.0% 21.4% 16.2% 18.0% BMET 2011 2012 2013 2014 2015 2016 2017 2018 2019 Net fee income/ Net banking income 24% 25% 26% 26% 28% 29% 33% 34%
Slide 51: INSURANCE: Cost-Income ratio by business line 2011-2019
Cost-Income ratio by business line between 2011 and 2019 xx% Contribution to net banking income 54% 55% 54% 56% 54% 53% 50% 50% 51% 44.1% 43.1% 44.5% 42.0% 46.7% 47.4% 47.1% 47.6% 47.8% BMET 2011 2012 2013 2014 2015 2016 2017 2018 2019 24% 25% 26% 26% 28% 29% 33% 34% 33% 61.3% 57.2% 56.3% 55.9% 56.5
Slide 52: Financial Communication 2019
Attijariwafa bank As of 31st December 2019 Financial Communication 2019
Slide 53: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31st, 2019 Regulatory ratios as of December 31st, 2019 Attijariwafa bank share price performance 2
Slide 54: Macroeconomic environment in Africa
Macroeconomic environment in Africa GDP growth in Africa GDP growth in North and Sub-Saharan Africa (%) 2018 2019 2020F North Africa 9.6 WAEMU1 Africa 3.5% 4.0% 4.1% EMCCA 2 North Africa 4.3% 4.4% 4.3% 6.3 6.3 6.2 6.5 6.6 6.3 6.4 West Africa 3.3% 3.6% 3.6% 6.1 6.5 WAEMU1 6.5% 6.4% 6.5% 4.9 4.4 6.0 4
Slide 55: Macroeconomic environment in AWB's main African markets
Macroeconomic environment in AWB’s main African markets 2019 figures 1 3 2 4 Morocco Tunisia Mauritania Egypt Senegal Burkina-Faso North Africa GDP growth : +2.6% GDP growth :+1.5% GDP growth : +6.6% GDP growth : +5.5% GDP growth : +6.0% GDP growth : +6.0% GDP/cap (USD) : 3,538 GDP/cap (USD) : 3,565
Slide 56: Macroeconomic environment in Morocco in 2019
1 Macroeconomic environment in Morocco in 2019 Main economic indicators Economic growth 2018 2019 2020F GDP growth rate of 2.6% in 2019 Real GDP growth 2.8% 2.6% 3.8% Pick up in non-agricultural growth: +3.3% in 2019 (+0,5 pt) Agricultural GDP 2.7% -4.3% 6.2% Low inflation rate (0.2% in 2019 a
Slide 57: Drop in government bond yields in 2019
1 Drop in government bond yields in 2019 Interest rate environment Dec 2015 Dec 2016 Dec 2017 Dec 2018 Dec 2019 Interest rate 2.50% 2.25% 2.25% 2.25% 2.25% 13w 2.48% 2.19% 2.20% 2.34% 2.27% 26w 2.51% 2.24% 2.35% 2.40% 2.26% 52w 2.64% 2.38% 2.39% 2.46% 2.29% -50 to -20 bps 0 to +20 bps +5 to +14 bps
Slide 58: Moroccan financial market in 2019
1 Moroccan financial market in 2019 Financial market trends in 2019FY 2017 2018 2019 Stock exchange market’s trend in 2019: MASI 6.4% -8.3% 7.1% - 7.1% YoY increase of MASI as of 31 December MADEX 5.8% -8.6% 7.4% 2019 Trading volume (MAD bn) 69.7 52.7 75.4 Market Cap. (MAD bn) 627.0 582.2 626.7 -
Slide 59: Moroccan banking sector
1 Moroccan banking sector YoY growth X% CAGR X% +/- Deposits (MAD billion) Deposits: YoY growth CAGR 13-17 +6% CAGR 17-19 +3% +6% +3% +3% 899 925 950 6.8% 6.4% 5.9% 718 4.4% 2.9% 2.7% Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 2013 2017 2018 2019 Loans (MAD billion) Performing loans : YoY growth +3%
Slide 60: Moroccan banking sector
1 Moroccan banking sector YoY growth X% CAGR X% +/- Retail loans (1) (MAD billion) Retail loans: YoY growth CAGR 13-16 +5% CAGR 16-19 +4% +5% +4% +3% 6.7% 4.9% 4.9% 4.4% 253 263 271 3.8% 207 3.2% 2013 2017 2018 2019 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Corporate loans(2) (MAD billion) Corporate
Slide 61: Stable NPLs in Morocco since 2015
1 Stable NPLs in Morocco since 2015 NPL ratio (Moroccan banking sector) P1 P2 7,40% 7,72% 7,39% 7,38% 7,24% 6,82% 5,98% 2013 2014 2015 2016 2017 2018 2019 P1 Deterioration of NPL ratio by ~2 points between 2012 and 2016 due to several factors (economic slowdown in Europe and Morocco, soft landing of
Slide 62: Significant improvement of the macroeconomic environment in Egypt
2 Significant improvement of the macroeconomic environment in Egypt after reforms and appreciation of EGP in 2019 GDP growth Inflation Lower inflation rate in 5.9% 2018 (7.2% in January New Floating 2019) 5.5% 5.3% exchange rate regime Acceleration of in November 2016 economic 4.2% 14% 9% growth
Slide 63: Macroeconomic environment in 2019 Tunisia, Senegal and Ivory Coast
Macroeconomic environment in 2019 Tunisia, Senegal and Ivory Coast 3 Tunisia: main economic indicators 2018 2019 2020F GDP growth of 1.5% in 2019 and 2.4% in 2020F Real GDP growth 2.5% 1.5% 2.4% Inflation rate down to 6.6% in 2019 and 5.4% in 2020F Increase of Foreign currency exchange reserve
Slide 64: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31st, 2019 Regulatory ratios as of December 31st, 2019 Attijariwafa bank share price performance 13
Slide 65: 2019FY consolidated P&L
2019FY consolidated P&L Growth Rate at a (in MAD million) 2018FY 2019FY Growth Rate constant exchange rate Net banking income 22,371 23,473 4.9% 5.8% 1 Net interest income 13,995 14,937 6.7% 7.5% 2 Net fee income 5,034 5,148 2.3% 3.6% Income from market activities 3,841 3,709 -3.4% -2.9% Others -499
Slide 66: Exceptional items impacting the 2019 consolidated financial statements
Exceptional items impacting the 2019 consolidated financial statements for the first time Main items Scope of impact Impact NIGS impact NIGS change impact (MMAD) Entry into force of the new social cohesion BMET, SFC & Insurance -156 -2.7 pts tax in Morocco for 2 years (2019 and 2020) IFRS adjust
Slide 67: 2019FY key indicators
2019FY key indicators 2018FY 2019FY Net interest margin (bps)* 459 461 Non-interest income** (bps) 164 160 Cost income ratio 47.9% 47.8% NPL ratio 6.8% 6.6% Cost of risk 0.53% 0.46% RoA 1.32% 1.31% (1.38%) RoE 15.4% 14.8% Leverage 10.1x 9.9x (*) Net interest income / net customer loans; (**) Non int
Slide 68: Growth of NBI by business line
Growth of NBI by business line X% +/- MAD billion BMET Specialized Financial Companies +6.8% +4.0% 11.5 12.3 NBI 2.4 2.5 +4.9% 22.4 23.5 2018 2019 2018 2019 International Retail Banking Insurance +3.6% at a constant exchange rate +1.4% +7.9% 2018 2019 7.8 7.9 1.1 1.1 2018 2019 2018 2019 17 - 2019FY
Slide 69: Growth of Net Interest Income by business line
1 Growth of Net Interest Income by business line X% +/- MAD billion BMET Specialized Financial Companies +6.8% +3.4% 7.3 7.8 Net interest income 1.2 1.2 +6.7% 2018 2019 2018 2019 14.0 14.9 International Retail Banking Insurance +7.2% at a +5.3% constant +5.5% 2018 2019 exchange rate 4.9 5.2 0.7 0.8
Slide 70: Growth of loans by business line
1 Growth of loans by business line X% +/- MAD billion BMET Specialized Financial Companies +5.6% +2.8% 204 216 Loans 31 32 +6.1% 305 324 2018 2019 2018 2019 3.6% 3.6% 3.8% 3.8% International Retail Banking Insurance +6.8% at a +9.4% constant -2.4% 2018 2019 exchange rate 4.6% 4.6% 67 74 3 3 2018 201
Slide 71: Growth of fees by business line
2 Growth of fees by business line X% +/- MAD billion BMET Specialized Financial Companies +3.6% at a +4.3% +5.8% constant Net fee income exchange rate 2.31 2.40 +2.3% 5.03 5.15 0.57 0.60 2018 2019 2018 2019 International Retail Banking +1.6% at a -0.8% constant 2018 2019 exchange rate 2.19 2.17 2018
Slide 72: Growth of income from market activities by business line
2 Growth of income from market activities by business line X% +/- MAD billion Economic P&L of « market activities »*: BMET +19% in Morocco Specialized Financial Companies +5.0% -43.1% 2.61 2.74 Income from Market activities -3.4% 3.84 3.71 0.014 0.008 2018 2019 2018 2019 International Retail Banking
Slide 73: Evolution of Cost of Risk by business line
4 Evolution of Cost of Risk by business line X% +/- X% CoR (%) MAD million BMET Specialized Financial Companies 0.35% 0.31% 1.01% 0.77% -5.9% -20.8% Cost of Risk 754 709 0.53% 0.46% 331 262 1,724 -7.8% 1,589 2018 2019 2018 2019 International Retail Banking Insurance 0.76% 0.63% 1.96% 2.96% -10.5% +5
Slide 74: NPLs and cost of risk
4 IFRS consolidated financial statements NPLs and cost of risk NPL ratio Cost of risk (in bps) 113 83 6.8% 7.1% 7.0% 7.0% 6.8% 70 72 6.6% 50 53 46 2014 2015 2016 2017 2018 2019 Average 2014 2015 2016 2017 2018 2019 2007- 2013 23 - 2019FY Results- Attijariwafa bank
Slide 75: Customer Loans
4 Growth of customer loans and NPL ratio by business line X% +/- Xx% Contribution to net customer loans (end of period) + + = Specialized Financial International Retail BMET AWB (Consolidated loans) Companies Banking (MAD bn) 67% 10% 23% 100% 305.1 323.8 +5.6% +2.8% +9.4% +6.1% Customer Loans 204.0
Slide 76: Customer Loans: Focus on IRB
4 Growth of customer loans and NPL ratio by business line: Focus on IRB* X% +/- + + = International Retail North Africa(1) WAEMU(2) EMCCA(3) (MAD bn) Banking 67.4 73.8 +20.0% +3.4% -0.5% +9.4% Customer Loans 32.7 29.0 29.9 27.2 11.2 11.2 2018 2019 2018 2019 2018 2019 2018 2019 +10.7% at a constant e
Slide 77: Exposures, staging & coverage
Exposures, staging & coverage In MAD million, figures as of 31 Dec. 2019 GROUP Exposure at default Coverage ratio Bucket 1 Bucket 2 Bucket 3 Total Bucket 1 Bucket 2 Bucket 3 Total Loans 294 573 28 064 22 971 345 608 0,8% 14,9% 67,0% 6,3% off balance loans 140 870 9 207 496 150 572 0,4% 3,3% 20,5% 0,
Slide 78: Growth of NIGS by business line
6 Growth of NIGS by business line X% +/- +10.3% excluding MAD million BMET exceptional items* Specialized Financial Companies +13.4% excluding +1.2% +6.8% exceptional items* +8.7% excluding 3,364 3,405 exceptional Net income group share items* 545 583 5,706 5,816 +1.9% 2018 2019 2018 2019 Internatio
Slide 79: RoA by business line
RoA by business line X% +/- BMET International Retail Banking (1.95%) (1.14%) 1.95% 1.97% 1.92% 0.92% 1.08% 1.06% RoA 2013 2018 2019 2013 2018 2019 (1.38%) 1.31% 1.32% 1.31% Specialized Financial Companies Insurance 2013 2018 2019 (2.19%) 2.31% 2.07% 2.31% 1.96% (0.80%) 0.78% 0.75% 2013 2018 2019 20
Slide 80: RoA on a consolidated basis
RoA on a consolidated basis X% +/- Net banking income / assets Net interest income / assets (4.46%) 4.64% 4.39% 4.41% (2.84%) 2.74% 2.74% 2.80% 2013 2018 2019 2013 2018 2019 RoA Expenses / assets Non interest income / assets (1.38%) (1.70%) (1.72%) (1.67%) 1.31% 1.32% 1.31% (2.08%) (1.62%) 2.06% 2.1
Slide 81: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31st, 2019 Regulatory ratios as of December 31st, 2019 Attijariwafa bank share price performance 30 - 2019FY Results- Attijariwafa bank
Slide 82: Regulatory ratios
Regulatory ratios Capital Adequacy ratio Tier 1 CAR Consolidated basis 12.7% 12.6% 12.5% 13.3% 13.0% 13.0% Minimum 12.3% requirements: 12% 9.9% 10.1% 10.1% 10.8% 9.7% 10.2% 10.2% Minimum requirements Tier 1 : 9% (CET1: 8% and AT1: 1%) Capital adequacy 2013 2014 2015 2016 2017 2018 2019F Capital Adeq
Slide 83: Regulatory main recent evolutions
Regulatory main recent evolutions Regulatory / accounting main recent evolutions Recent capital evolutions - 2014: application of Basel 3: June 18: Issuance of MAD 1.5bn Tier 2 (+62 bps on • New Tier 1 eligible instrument: additional Tier 1 AWB’s CAR and +40 bps on Group’s CAR) (perpetual with loss
Slide 84: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31st, 2019 Regulatory ratios as of December 31st, 2019 Attijariwafa bank share price performance 33 - 2019FY Results- Attijariwafa bank
Slide 85: Attijariwafa bank share price performance
Attijariwafa bank share price performance Attijariwafa bank vs MASI from 12-31-12 to 02-21-20 Share price as of 31 Dec. 2019: MAD 499 - Largest market capitalization in the banking sector and 2nd largest in Morocco: MAD 104.7 billion - Attijariwafa bank shares up YoY +10.2% vs. +5.6% for the banki
Slide 86: Attijariwafa bank market indicators
Attijariwafa bank market indicators Attijariwafa bank 12/31/2017 12/31/2018 12/31/2019 02/21/2020 Share price 484 453 499 510 Year High 500 514 499 510 Year Low 396 416.5 423 483 P/B (*) 2.3x 2.1x 2.2x - P/E (*) 18.3x 16.7x 18.0x - DY 2.58% 2.87% 2.71% - Number of shares 203,527,226 209,859,679 209,
Slide 87: Back up
Back up 36 - 2019FY Results- Attijariwafa bank
Slide 88: Growth of expenses by business line
3 Growth of expenses by business line X% +/- X% Cost-Income ratio MAD million BMET Specialized Financial Companies 47.6% 47.8% 41.0% 41.1% +5.5% at a +7.4% +4.2% constant Expenses exchange rate 5,465 5,870 47.9% 47.8% 10,713 11,223 991 1,033 +4.8% 2018 2019 2018 2019 International Retail Banking Ins
Slide 89: Growth of NI by business line
5 Growth of NI by business line X% +/- MAD million BMET Specialized Financial Companies +1.3% +7.3% +4.2% at a 3,391 3,433 constant Net income exchange rate 687 737 +3.2% 6,735 6,951 2018 2019 2018 2019 International Retail Banking Insurance +7.5% at a +4.5% constant +5.7% 2018 2019 exchange rate 2,
Slide 90: Main contributors to loans in 2019FY
1 Main contributors to loans in 2019FY in MAD million Growth Rate 2019FY Subsidiaries Weight Growth Rate at a constant contributions exchange rate Attijariwafa bank (Morocco) 206,945 63.9% 3.6% 3.6% Attijari bank Tunisie (Tunisia) 20,665 6.4% 14.1% 6.4% Wafasalaf (Morocco) 15,535 4.8% 3.9% 3.9% SIB
Slide 91: Main contributors to net banking income in 2019FY
Main contributors to net banking income in 2019FY in MAD million Growth Rate Subsidiaries 2019FY Contributions Weight Growth Rate at a constant exchange rate Attijariwafa bank (Morocco) 11,344 47.5% 6.2% 6.2% Attijari bank Tunisie (Tunisia) 1,606 6.7% 5.3% 13.7% CBAO (Senegal) 1,278 5.4% 7.1% 10.1%
Slide 92: Main contributors to net income group share in 2019FY
6 Main contributors to net income group share in 2019FY in MAD million Growth rate at a Subsidiaries 2019FY contributions Weight Growyh rate constant exchange rate Attijariwafa bank (Morocco) 3,419 58.8% 4.8% 4.8% Attijari bank Tunisie (Tunisia) 328 5.6% 13.3% 22.3% CBAO (Senegal) 296 5.1% -4.9% -2.
Slide 93: RAROC by business line
RAROC by business line X% +/- BMET International Retail Banking (16.1%) (12.2%) 15.9% 16.4% 15.8% 12.5% 11.4% 10.7% RAROC 2013 2018 2019 2013 2018 2019 (14.7%) 14.6% 14.8% 14.0% Specialized Financial Companies (19.3%) 19.7% 17.4% 18.1% 2013 2018 2019 RAROC = Net Income / [12% x Risk Weighted Assets]
Slide 94: RoA - Banking in Morocco, Europe and Offshore
RoA - Banking in Morocco, Europe and Offshore X% +/- Net banking income / assets Net interest income / assets (3.82%) 3.82% 3.64% 3.78% (2.44%) 2.52% 2.32% 2.40% 2013 2018 2019 2013 2018 2019 RoA Expenses / assets Non interest income / assets (1.14%) 1.08% 1.06% (1.76%) (1.38%) 0.92% 1.70% 1.73% 1.8
Slide 95: RoA - International Retail Banking
RoA - International Retail Banking X% +/- Net banking income / assets Net interest income / assets (6.25%) 6.28% 6.56% 6.20% (4.11%) 3.63% 4.14% 4.06% 2013 2018 2019 2013 2018 2019 RoA Expenses / assets Non interest income / assets (1.95%) 1.95% 1.97% 1.92% (3.17%) (2.14%) 3.53% 3.34% 3.15% 2.65% 2.
Slide 96: RoA - Specialized Financial Companies
RoA - Specialized Financial Companies X% +/- Net banking income / assets Net interest income / assets (7.07%) 7.81% 6.89% 7.05% (3.37%) 3.88% 3.29% 3.35% 2013 2018 2019 2013 2018 2019 RoA Expenses / assets Non interest income / assets (2.19%) 2.31% 1.96% 2.07% (2.88%) (3.70%) 3.93% 3.60% 3.70% 3.19%
Slide 97: RoA - Insurance
RoA - Insurance X% +/- Net banking income / assets Net interest income / assets 6.31% (2.58%) (1.76%) 2.62% 2.58% 1.64% 1.83% 1.76% 2013 2018 2019 2013 2018 2019 RoA Expenses / assets Non interest income / assets 2.31% (0.80%) 4.67% (1.53%) 0.78% 0.75% (0.82%) 1.86% 1.72% 1.54% 0.79% 0.82% 2013 2018
Slide 98: BMET: Cost of risk by business line 2011-2019
Cost of risk by business line between 2011 and 2019 xx% Contribution to gross customer loans (end of period) 71% 71% 70% 69% 66% 66% 64% 66% 66% 1.15% 0.86% 0.76% 0.76% 0.67% BMET 0.37% 0.38% 0.35% 0.31% 2011 2012 2013 2014 2015 2016 2017 2018 2019 Cost of risk 18% 17% 19% 19% 22% 23% 24% 23% 23% 1.
Slide 99: INSURANCE: RoA by business line 2011-2019
RoA by business line between 2011 and 2019 xx% Contribution to total assets (end of period) 66% 68% 67% 66% 64% 62% 61% 62% 61% 1.2% 1.1% 0.9% 1.0% 1.0% 1.0% 1.0% 1.1% 1.1% BMET 2011 2012 2013 2014 2015 2016 2017 2018 2019 19% 18% 20% 20% 22% 22% 24% 23% 24% 1.7% 1.6% 2.0% 1.7% 1.9% 2.0% 1.9% RoA 1.
Slide 100: BMET: Net interest margin by business line 2011-2019
Net interest margin by business line between 2011 and 2019 72% 72% 71% 70% 66% 66% 65% 67% 67% xx% Contribution to net customer loans (end of period) 3.8% 3.6% 3.7% 3.7% 4.0% 3.8% 3.8% 3.6% 3.6% BMET 2011 2012 2013 2014 2015 2016 2017 2018 2019 Net interest margin/ customer loans (end of period) 17%
Slide 101: BMET: Net fee income by business line 2011-2019
Net fee income by business line between 2011 and 2019 xx% Contribution to net banking income 54% 55% 54% 56% 54% 53% 50% 50% 51% 23.9% 19.1% 18.7% 18.2% 20.3% 21.0% 21.4% 16.2% 18.0% BMET 2011 2012 2013 2014 2015 2016 2017 2018 2019 Net fee income/ Net banking income 24% 25% 26% 26% 28% 29% 33% 34%
Slide 102: INSURANCE: Cost-Income ratio by business line 2011-2019
Cost-Income ratio by business line between 2011 and 2019 xx% Contribution to net banking income 54% 55% 54% 56% 54% 53% 50% 50% 51% 44.1% 43.1% 44.5% 42.0% 46.7% 47.4% 47.1% 47.6% 47.8% BMET 2011 2012 2013 2014 2015 2016 2017 2018 2019 24% 25% 26% 26% 28% 29% 33% 34% 33% 61.3% 57.2% 56.3% 55.9% 56.5