Attijariwafa Bank Sa · CSEMA:ATW
Attijariwafa Bank Sa — FY2021 Earnings Presentation
63 slides from Attijariwafa Bank Sa's earnings presentation, December 2021
Slide 1: Financial Communication
Attijariwafa bank December 2021 Financial Communication 2021
Slide 2: Agenda
Agenda Overview of macroeconomic environment in AWB’s countries of presence Liquidity, Capital Adequacy Ratio and Financial Performance Attijariwafa bank share price performance Back up Continued support of customers and communities through Covid-19 crisis 2
Slide 3: Macroeconomic environment in Morocco: Outlook and main indicators
Macroeconomic environment in Morocco Outlook and main indicators Average 2016- Main indicators 2019 2020 2021 2022F 2018 GDP growth (%) 2.7% 2.7% -6.1% 7.2% 2.8% Non agricultural GDP (%) 3.0% 3.9% -6.0% 5.6% 3.5% Agricultural GDP (%) 1.1% -4.6% -6.9% 17.9% -1.6% Domestic consumption 3.5% 1.9% -4.1%
Slide 4: Macroeconomic environment in Morocco: main indicators per sector
Macroeconomic environment in Morocco Outlook and main indicators per sector Economic sector 2020 2021 Agricultural sector Agricultural GDP -6.9% +17.9% Cereal production -39% +221% +3.9% +57.1% Phosphates & Derivatives Exports 51 MAD bn 80 MAD bn Construction industry Cements sales -10.0% +14.8% Mor
Slide 5: Strong recovery of world demand to Morocco
X% Strong recovery of world demand to Morocco CAGR 13-21 Change (%) Change (%) 2013 2019 2020 2021 20/19 21/20 Imports 410.9 527.5 438.3 537.3 -16.9% +22.6% +3.4% Imports excl. Energy 308.6 451.2 388.4 461.7 -13.9% +18.9% Exports 222.6 344.8 318.7 387.2 -7.6% +21.5% +7.2% Tourism 57.6 78.8 36.5 34.3
Slide 6: Exports: Global businesses of Morocco
Exports: Word businesses of Morocco 2016 2017 2018 2019 2020 2021 Change CAGR (In MAD bn) 2021/2020 2016-2021 New export-oriented sectors Automotive +15.9% +8.9% Aeronautics +21.9% +10.9% Electronic +28.5% +9.5% Traditional export-oriented sectors Phosphate +57.1% +15.1% Agriculture +9.2% +7.1% Text
Slide 7: Exchange rates trend in 2020 and 2021
EUR/MAD Exchange rates trend in 2020 and 2021 USD/MAD January 2018 : Implementation of a flexible exchange rate regime with an adjustable horizontal band (+/- 2.5%) within which MAD can fluctuate freely based on the interbank market supply and demand law March 2020: Widening the fluctuation band
Slide 8: Budget deficit of 7% stimulating the economic recovery in 2021
Budget deficit of 7% stimulating the economic recovery in 2021 2022/2021 • +14.4% of tax • -8.6% of non- • +13.2% of public revenues tax revenues investment 2021/2020 • +7.8% • +38.6% of non- • -9.5% of public • of tax revenues tax revenues investment Budget deficit from 2010 to 2022 (in% GDP) Treas
Slide 9: Sovereign bonds yield curve trend between Dec 2019 and 2021
Sovereign bonds yield curve trend between Dec - 2019 Dec 2019 and 2021 Dec - 2020 Dec - 2021 2 successive Cuts in key interest rate to 1.50% (25bps in March and 50 bps in June 2020) Mandatory cash reserve at 0% of deposits vs. 2% before Dec - 2019 Dec - 2020 Dec - 2021 9 Attijariwafa bank presen
Slide 10: Macroeconomic environment in Morocco: Inflation
Macroeconomic environment in Morocco Outlook and main indicators Inflation (%) Average 1.2 Source: MEF/HCP 10 Attijariwafa bank presentation – FY 2021 Results
Slide 11: Macroeconomic environment in Morocco: Unemployment and job creation
Macroeconomic environment in Morocco Outlook and main indicators 642 000 new jobs between Q3 20 & Q3 21 Unemployment rate (%) Job creation (12 months in million) Companies' creation -13% +25% 11 Attijariwafa bank presentation – FY 2021 Results
Slide 12: Macroeconomic environment in AWB's main countries: economic growth
Macroeconomic environment in AWB’s main countries of presence – Focus on economic growth Real GDP growth (%) 2019 2020 2021E 2022F Egypt 5.6% 3.6% 3.3% 5.2% Tunisia 1.0% -8.6% 3.0% 3.3% Ivory coast 6.2% 2.0% 6.0% 6.5% Senegal 4.4% 1.5% 4.7% 5.5% Cameroon 3.7% -1.5% 3.6% 4.6% IMF, BAD, BEAC, Internal
Slide 13: Monetary policy in AWB's main regions of presence
Monetary policy in AWB’s main regions of presence Main countries of presence Monetary policy after the crisis 2 successive cuts in key interest rate to 1.50% (25bps in March and 50 bps in Morocco June 2020) 150 bps cut of key interest rate to 6.25% ( 100 bps in March and 50 bps in Tunisia Octobe
Slide 14: Inflation rate in AWB's main regions of presence
Inflation rate in AWB’s main regions of presence EGYPT TUNISIE -3.8 pts +0.4 pt +1.5 pt -1.1 pt +0.1 pt +0.8 pt WAEMU EMCCA +2.8 pts +0.7 pt -0.6 pt +0.9 pt -0.6 pt +0.2 pt 14 Attijariwafa bank presentation – FY 2021 Results
Slide 15: Moroccan banking sector YoY growth
Moroccan banking sector YoY growth X% YoY growth X% CAGR Annual change Deposits (MAD billion) Deposits: YoY growth CAGR 13-17 +6% CAGR 17-19 +3% +5% +5% +5% +3% +5% +5% Loans (MAD billion) Performing loans : YoY growth +3% +5% +3% +3% CAGR 13-17 +3% CAGR 17-19 +6% +3% +3% Source : GPBM (the Moroccan
Slide 16: Moroccan banking sector YoY growth: retail and corporate loans
Moroccan banking sector YoY growth YoY growth X% CAGR X% Annual change Retail loans (1) (MAD billion) Retail loans: YoY growth CAGR 13-16 +5% CAGR 16-19 +4% +0.2% +3% +5% +3% +0.2% +3% Corporate loans(2) (MAD billion) Corporate loans : YoY growth +3% +5% +4% +3% CAGR 13-15 +0% CAGR 15-17 +3% CAGR 17
Slide 17: Agenda
Agenda Overview of macroeconomic environment in AWB’s countries of presence Liquidity, Capital Adequacy Ratio and Financial Performance Attijariwafa bank share price performance Back up Continued support of customers and communities through Covid-19 crisis 17
Slide 18: FY 2021 consolidated P&L
FY 2021 consolidated P&L Growth Rate at a (in MAD million) FY 2020 FY 2021 Growth Rate constant exchange rate Net banking income 23,858 24,380 2.2% 3.2% Net interest income 15,785 16,170 2.4% 3.6% Net fee income 4,771 5,192 8.8% 10.1% Income from market activities 3,031 3,546 17.0% 17.6% +0.0% at a
Slide 19: FY 2021 key financial indicators
FY 2021 key financial indicators FY 2019 FY 2020 FY 2021 Net interest margin* (bps) 461 473 469 45,8% at a constant scope 51.3% Cost income ratio 47.8% 46.3% 46.5%** NPL ratio 6.6% 7.8% 8.1% Cost of risk 0.46% 1.51% 0.97% 0.65% RoA 1.31% 1.03% 0.78%** 7.3% RoE (***) 14.8% 11.5% 8.9%** Leverage (****
Slide 20: NBI by business line
NBI by business line X% Annual change BMET Specialized Financial Companies MAD billion -2.3% +5.2% -0.9% +4.0% +3.2% at a constant NBI exchange rate +1.7% +2.2% +5.4% at a constant exchange rate International Retail Banking Insurance +1.9% +2.5% +46.1% -26.3% +5.4% at a constant NBI (excl. Insurance
Slide 21: Net Interest Income by business line
X% Annual change Net Interest Income by business line MAD billion BMET Specialized Financial Companies +5.3% +2.3% +4.7% -6.7% +3.6% at a constant exchange rate Net interest income +5.7% +2.4% 3.7% 3.7% 3.7% 3.4% 3.7% 3.4% International Retail Banking Insurance +7.6% +2.8% +5.8% at a +5.6% +15.5% co
Slide 22: Deposits by business line
Deposits by business line X% Annual change • Free-interest deposits : +9.8% MAD billion BMET Specialized Financial Companies +4.9% +6.5% -9.9% -6.6% +7.3% at a constant exchange rate Deposits +6.3% +6.8% • Free-interest deposits : +18.3% • +9.7% at a constant exchange rate International Retail Banki
Slide 23: Cost of funding evolution – Focus on Morocco
Cost of funding evolution – Focus on Morocco Deposits structure (% of non bearing interest deposits) +13 points between 2013 +11 points + 2 points and 2021 69.2% 71.5% 65.8% 58.7% 59.1% Cost of funding -96 bps between 2013 -78 bps and 2021 2013 2014 2019 2020 2021 1.43% 1.40% Interest bearing deposi
Slide 24: Net interest margin by business line between 2012 and 2021
Net interest margin by business line between 2012 and 2021 xx% Contribution to net customer loans (end of period) 72% 71% 70% 66% 66% 65% 67% 67% 66% 65% BMET Net interest margin/ customer loans (end of period) 17% 18% 19% 22% 22% 24% 22% 23% 23% 24% IRB 10% 10% 10% 11% 11% 11% 10% 10% 10% 10% SFS N
Slide 25: Fees by business line
X% Annual change Fees by business line MAD billion BMET Specialized Financial Companies +10.1% at a -7.5% ¨+10.4% -9.3% +11.9% constant exchange rate Net fee income -7.3% +8.8% International Retail Banking +5.1% at a constant exchange rate -4.0% +2.5% 25 Attijariwafa bank presentation – FY 2021 Resu
Slide 26: A rigorous cost control based on an ambitious saving plan
X% Annual change x% At a constant scope A rigorous cost control based on an and excluding the contribution to COVID- ambitious saving plan…. 19 special fund in 2020 MAD million BMET Specialized Financial Companies Cost-Income ratio on a consolidated basis: -1.5pt between FY 19 and FY 21 -5.0% +0.4%
Slide 27: Leveraging on digital transformation
…and leveraging on digital transformation Active digital clients (% of total clients) 33% 39% 51% 27% ~51% of active digital customers 2018 2019 2020 2021 # of connections (million ; on a monthly basis) +59% ** 6 +50% 8 +59% 13 21 More than 21 millions connections per month in 2021 (+59%) 2018 2
Slide 28: Customer Loans
Growth of customer loans and NPL ratio by business line X% Annual change Xx% Contribution to net customer loans (end of period) + + = Specialized Financial International Retail BMET AWB (Consolidated loans) Companies Banking (MAD bn) 67% 10% 22% 100% +3.8% +2.7% -5.1% +3.1% +4.7% +5.4% Customer Loan
Slide 29: Customer Loans: Focus on IRB
Growth of customer loans and NPL ratio by X% Annual change business line: Focus on IRB* + + = International Retail North Africa(1) WAEMU(2) EMCCA(3) (MAD bn) Banking +7.7% +6.5% +6.7% +4.2% -9.5% +5.5% Customer Loans +8.4%* +4.7% +5.4% +3.3%* +6.3%* +8.7%* (*) at a constant exchange rate -0.3pt +0.3
Slide 30: Evolution of Cost of Risk by business line
Evolution of Cost of Risk by business line X% Annual change X% CoR (%) MAD million BMET Specialized Financial Companies NA -15.7% NA -69.8% Cost of Risk NA -33.9% 0.32% 1.10% 0.90% 0.71% 3.00% 0.88% International Retail Banking Insurance NA -14.9% NA -96.8% 0.46% 1.51% 0.97% 0,92% excluding sovereig
Slide 31: Cost of risk by business line between 2012 and 2021
Cost of risk by business line between 2012 and 2021 xx% Contribution to net customer loans (end of period) 71% 71% 70% 69% 66% 66% 64% 66% 65% 65% 65% BMET +24 bps Average 12-19: 0.66% Cost of risk 18% 17% 19% 19% 22% 23% 24% 23% 23% 23% 24% +28 bps IRB +50 bps Average Average 12-19: 0.69% 12-19: 0.
Slide 32: NIGS by business line
X% Annual change NIGS by business line MAD million BMET Specialized Financial Companies x% RoA +1.10% +0.63%* +0.80% +1.63% NA +1.92% Net income group share -66.8% NA -57.1% +95.4% +1.31% +0.78%* +1.03% +37.6%* -48.1% +70.5% +39.2%* International Retail Banking Insurance +1.92 +1.32%* +1.66% +0.75%
Slide 33: RoA by business line between 2012 and 2021
RoA by business line between 2012 and 2021 xx% Contribution to total assets (end of period) 68% 67% 66% 64% 62% 61% 62% 60% 61% 62% BMET ** * 18% 20% 20% 22% 22% 24% 23% 24% 24% 22% RoA ** IRB ** 8% 7% 7% 7% 7% 7% 7% 8% 7% 6% FFS ** * 7% 6% 6% 7% 8% 8% 8% 8% 8% 9% INSURANCE ** (*) BMET and SFS profo
Slide 34: Solid liquidity position
Solid liquidity position Liquid and free assets (HQLA) in MAD billion Bank in Morocco 67 74 57 43 43 35 Dec 31, 2018 Dec 31, 2019 March 31, 2020 Dec 31, 2020 June 30, 2021 Dec 31, 2021 104% 127% 115% 202% 175% 184% Consolidated basis 106 113 95 70 72 71 Dec 31, 2018 Dec 31, 2019 March 31, 2020 Dec 3
Slide 35: Solid capital position
Solid capital position X% Buffer above Tier 1 regulatory minimum ~x2 Tier 1 CAR COVID19 crisis 110bps 110bps 180bps 70bps 120bps 130bps 170bps 230bps Capital Adequacy ratio Consolidated basis 12.6% 12.5% 13.3% 13.0% 13.1% 13.4% 13.5% Minimum 12.3% 10.8% 10.7% 11.3% requirements: 12% 10.1% 10.1% 9.7%
Slide 36: Agenda
Agenda Overview of macroeconomic environment in AWB’s countries of presence Liquidity, Capital Adequacy Ratio and Financial Performance Attijariwafa bank share price performance Back up Continued support of customers and communities through Covid-19 crisis 36 Attijariwafa bank presentation – FY 2021
Slide 37: Attijariwafa bank share price performance
Attijariwafa bank share price performance +20% Share price performance 3 months 6 months 12 months Attijariwafa bank -3.0% 1.3% 13.2% Masi -1.1% 4.1% 16.0% 25th Feb, 2021 25th Feb, 2022 Market capitalization 87.7 MAD bn 101.8 MAD bn (10.8 USD bn) 37 Attijariwafa bank presentation – FY 2021 Results
Slide 38: A solid, resilient and diversified business model (1/2)
A solid, resilient and diversified business model (1/2) Main indicators Net banking income +3.2% Satisfactory growth of the top line and resilient margins NIM (%)** +7 bps compared to 2019 Fees +11% Cost-income ratio Group -2.0 pts compared to 2019 Cost-income ratio BMET -3.4 pts compared to 2019
Slide 39: A solid, resilient and diversified business model (2/2)
A solid, resilient and diversified business model (2/2) Main indicators Bank in Morocco LCR 184% (84 pts over minimum) CAR 16.3% Tier1 12.7% Buffer above Tier1 min 370 bps (x2 since 2018) Sound liquidity and capital position On a consolidated basis LCR 185% (85 pts over minimum) CAR 13.5% Tier1 11
Slide 40: Agenda
Agenda Overview of macroeconomic environment in AWB’s countries of presence Liquidity, Capital Adequacy Ratio and Financial Performance Attijariwafa bank share price performance Back up Continued support of customers and communities through Covid-19 crisis 40 Attijariwafa bank presentation – FY 2021
Slide 41: Political context: a new government in Morocco after September 2021 elections
Political context: a new government in Morocco after September 2021 elections Context • July 2011: New constitution approved by referendum • November 2011: First legislative elections post new constitution leading to a new government with a Chief of Government from the “Justice and Development” part
Slide 42: Positive trend of Covid-19 new cases and vaccination pace
Positive trend of Covid-19 new cases and vaccination pace 22m (~80%) of population (> 12 years old) Number of Covid-19 new cases (on a daily basis) Evolution of the vaccination campaign 22m (~80%) of population (> 12 years old) 12 039 5 199 28-sept. 42 Attijariwafa bank presentation – FY 2021 Result
Slide 43: Macroeconomic environment in Morocco: YoY GDP growth
Macroeconomic environment in Morocco x% YoY growth Outlook and main indicators YoY GDP growth 2 quarters of recession +3.1% +2.6% +2.4% +2.4% +0.8% -14.1% -6.7% -5.1% +1.0% +12.6% +7.2% YoY Non-agricultural GDP growth 2 quarters of recession +4.2% +3.7% +3.5% +3.3% +1.7% -15.0% -6.2% -4.5% -1.3% +11
Slide 44: Exports: Global businesses of Morocco
Exports: Word businesses of Morocco 2016 2017 2018 2019 2020 2021 H1 20 H1 21 H2 20 H2 21 Change CAGR (In MAD bn) 2021/2020 2016-2021 +42.8% -2.8% New export-oriented sectors Automotive +15.9% +8.9% -2.9% +51.6% Aeronautics +21.9% +10.9% +37.5% +20.6% Electronic +28.5% +9.5% Traditional export-orien
Slide 45: Sovereign bonds yield curve trend since 2013
Sovereign bonds yield curve trend since 2013 Key interest rate 52w Sovereign bonds 10y Sovereign bonds -3.27pts -1.75pt -2.37pts 45 Attijariwafa bank presentation – FY 2021 Results
Slide 46: Loans by business line
Loans by business line X% +/- MAD billion BMET Specialized Financial Companies +3.8% +2.7% -5.1% +3.1% +3.7% at a constant exchange rate Loans +3.1% +3.4% 3.7% 3.7% 3.7% 3.4% 3.7% 3.4% +6.3% at a constant exchange rate International Retail Banking Insurance +4.7% +5.4% +8.8% +6.2% 4.6% 4.7% 4.7% X%
Slide 47: Income from market activities by business line
Income from market activities by business line X% +/- MAD billion BMET Specialized Financial Companies -18.7% +11.3% 67.7% NA Income from Market activities -18.3% +17.0% International Retail Banking Insurance -22.5% +33.2% -9.2% +22.3% 47 Attijariwafa bank presentation – FY 2021 Results
Slide 48: Net interest margin by business line between 2012 and 2021
Net interest margin by business line between 2012 and 2021 xx% Contribution to total assets (end of period) 68% 67% 66% 64% 62% 61% 62% 60% 61% 62% BMET * Net interest margin/ Total assets (end of period) 18% 20% 20% 22% 22% 24% 23% 24% 24% 22% IRB 8% 7% 7% 7% 7% 7% 7% 7% 7% 6% SFS (*) BMET and SFS
Slide 49: Net fee income by business line between 2012 and 2021
Net fee income by business line between 2012 and 2021 xx% Contribution to net banking income 55% 54% 56% 54% 53% 50% 50% 51% 49% 51% BMET * Net fee income/ Net banking income 25% 26% 26% 28% 29% 33% 34% 33% 33% 33% IRB 12% 12% 11% 11% 12% 11% 11% 11% 11% 11% SFS (*) BMET and SFS proforma: Reclassifi
Slide 50: Cost-Income ratio by business line between 2012 and 2021
Cost-Income ratio by business line between 2012 and 2021 xx% Contribution to net banking income 55% 54% 56% 54% 53% 50% 50% 51% 49% 51% ** BMET * 25% 26% 26% 28% 29% 33% 34% 33% 33% 33% ** Cost-Income ratio IRB ** 12% 12% 11% 11% 12% 11% 11% 11% 11% 11% SFS * 8% 9% 7% 7% 7% 7% 5% 5% 7% 5% (*) BMET a
Slide 51: IFRS consolidated financial statements: NPLs and cost of risk
IFRS consolidated financial statements NPLs and cost of risk NPL ratio Cost of risk (in bps) Average 2007-2013 51 Attijariwafa bank presentation – FY 2021 Results
Slide 52: IFRS 9 Provisioning methodology
IFRS 9 Provisioning methodology Description Probability of Default Stage 1 – Performing 12 months ECL = Loans ECL = EAD X PD 1year X LGD Probability of Default “Point in Time” + Stage 2 – Performing Lifetime ECL loans but with significant Forward looking credit risk deterioration ECL = EAD
Slide 53: Early declaration of a state of health emergency and 3 months lockdown
Key measures taken by the Moroccan government and Central Bank to manage the global Covid-19 pandemic and its socio-economic impacts Executive Summary 1 An early declaration of a state of health emergency and 3 months lockdown period in order to mitigate the pandemic health impacts 2 Several eco
Slide 54: Implementation of a recovery plan
Implementation of a recovery plan Injection of MAD 120bn into the economy (~11% of GDP) MAD 75bn targeting a wide range of economic sectors and business Loans guaranteed by the segments government For all business segments including the business most affected by the crisis: – “DAMANE OXYGENE” to
Slide 55: Prevention and business continuity plan
Prevention and business continuity plan The Group has implemented a series of measures for its COVID-19 prevention plan to ensure business continuity, to reduce the risk of spreading, and to control the risks and impact on its P&L and balance sheet Up to 70% of Health safety Implementation of a ri
Slide 56: Prevention and business continuity plan
Prevention and business continuity plan The Group has implemented a series of measures for its COVID-19 prevention plan to ensure business continuity, to reduce the risk of spreading, and to control the risks and impact on its P&L and balance sheet Financial A liquidity crisis management unit was
Slide 57: Supporting and helping our customers and communities in all countries of operations
Supporting and helping our customers and communities in all countries of operations Attijariwafa bank has introduced a series of measures to help customers and “communities” in various segments and geographic areas of operations to meet the COVID 19 challenges and its unprecedented socioeconomic eff
Slide 58: Key measures taken by Bank Al Maghrib and impacts on AWB
Key measures taken by the Bank Al Maghrib (BAM) policy and impacts on AWB Monetarypolicy Monetary 2 successive cuts in key interest rate to 1.50% (25bps in March and 50 bps in June 2020) Mandatory cash reserve at 0% of deposits vs. 2% before Liquidity Main measures implemented by BAM Impacts on
Slide 59: Business continuity and operational resilience
Business continuity and operational resilience 5,548 branches, 100% of the distribution network, remained open ~100% of services maintained in all geographies Up to ~70% of employees of various headquarters working remotely ~30 k PCR test administrated 59 Attijariwafa bank presentation – FY 2021 Res
Slide 60: Continued support for customers and communities
Continued support for customers and communities Financing of 68,700 VSMEs through disbursement of MAD 40 bn new loans in Morocco 30-35% market share for Damane loans (with government guarantee) Financing of 6,500 young entrepreneurs 215,000 customers benefiting from loan moratoria at no additional c
Slide 61: Loan moratoria as of June 2020
Loan moratoria as of 30 June 2020 # cases Deferred outstanding loans Thousands of customers MAD billion Attijariwafa bank 42 14 Wafasalaf 68 5 Wafabail 3 6 Total Morocco 113 25 IRB 102 10 20% of investment, mortgage and Total Group 215,000 customers MAD 35 billion consumer loans (on a consolidated b
Slide 62: Focus on government backed loans to support VSMEs and Corporates
Focus on government backed loans to support VSMEs and Corporates during the crisis April, 2020 June, 2020 « DAMANE OXYGENE » « DAMANE RELANCE » Working capital loan in order to help VSMEs to Long term loan in order to support companies Purpose finance their expenses (Wages, suppliers) restarting
Slide 63: Evolution du cours de devises
Evolution du cours de devises Cours moyen Cours spot déc-20 déc-21 var déc-20 déc-21 var vs M-12 TND/MAD 3,379 3,239 -4,1% TND/MAD 3,324 3,227 -2,9% USD/ MAD 9,473 9,009 -4,9% USD/ MAD 8,905 9,280 4,2% TND/USD 0,357 0,360 0,8% TND/USD 0,373 0,348 -6,8% déc-20 déc-21 var déc-20 déc-21 var vs M-12 EGP