Bank of Africa SA · CSEMA:BOA
Bank of Africa SA — BMCE Bank — H1 2008 Earnings Presentation
53 slides from Bank of Africa SA's earnings presentation, Oct 6, 2008
Slide 1: Activities & Performances of BMCE Bank Group
BMCE BANK ACTIVITIES & PERFORMANCES OF BMCE BANK GROUP June 30th, 2008 Analysts – Press Conference October 6th, 2008
Slide 2: First semester 2008
First semester 2008…. First semester placed under the sign of development and substantial performances : Growth in earnings ; Sustained development in Morocco and abroad ; Sound risk management ; Compliance with regulatory requirements in terms of Basel II and IFRS. 1
Slide 3: Highlights 1st semester 2008
BMCE BANK HIGHLIGHTS 1st semester 2008
Slide 4: Renewed confidence in BMCE Bank growth potential
Renewed confidence in BMCE Bank growth potential with a stock market capitalization of MAD 49 billion at end-June 2008 vs MAD 44 billion at end-June 2007 Integration of Bank of Africa into the consolidation list further to the acquisition of 35% in AFH/Bank (BOA Group) Total assets reaching the MAD
Slide 5: Outstanding Financial Performances
BMCE BANK OUTSTANDING FINANCIAL PERFORMANCES
Slide 6: Sustained increase in financial indicators
Sustained increase in financial indicators 90.4% rise in Group Net Earnings 23.5% increase in Net Earnings - Group Share (IFRS). 158 549 +45% 7 045.7 109 311 +2.7% 821.7 6 858.2 +90.4% 431.5 +23.5% 469.1 379.9 June 2007 June 2008 Total Assets (in billion MAD) Shareholder’s equity (in million MAD) NB
Slide 7: Reinforcement of Total Assets
Reinforcement of Total Assets Consolidated Total Assets to nearly MAD 160 billions (MAD 158.5 billion) vs MAD 109.3 billion in June 2007, thanks to : 1- the development of activities in Morocco and abroad ; 2- the integration of Bank of Africa into the consolidation list ; 3- the adoption of IFRS no
Slide 8: Solid Balance Sheet Indicators
BMCE BANK SOLID BALANCE SHEET INDICATORS
Slide 9: Strong balance sheet and improving profitability, capital adequacy and liquidity ratios
A strong balance sheet and an improving profitability, capital adequacy and liquidity ratios Consolidated ROE IFRS June 07 June 08 11.06% 15.11% Consolidated Capital Adequacy Ratio June 07 June 08 8.78% 13.28% Liquidity Ratio Domestic activity June 07 June 08 105.7% 137.5% 8
Slide 10: Consolidated Income Statement
BMCE BANK CONSOLIDATED INCOME STATEMENT
Slide 11: Sustained rise in consolidated customer deposits
Sustained rise in consolidated customer deposits Customer Deposits in MMAD +37.7% 106 329 77 244 June 2007 June 2008 (*) Source : balance sheet 10
Slide 12: Sharp growth in consolidated customer loans
Sharp growth in consolidated customer loans Customer loans in MMAD +44.6% 85 765 59 324 June 2007 June 2008 (*) Source : balance sheet 11
Slide 13: Increase in revenues
Increase in revenues Net Interest income Net Fee Income + 67.8% + 60.3% 2 028 627 1 209 391 June 2007 June 2008 June 2007 June 2008 Income from market transactions + 26.7% 465 367 In MMAD June 2007 June 2008 12
Slide 14: Significant growth in consolidated earnings
Significant growth in consolidated earnings Net Banking Income - NBI Pre-tax Earnings In MMAD In MMAD + 59.0% + 79.6% 3 091 1 162 1 943 647 June 2007 June 2008 June 2007 June 2008 Net Earnings – Group Share in MMAD + 23.5% 469 380 June 2007 June 2008 13
Slide 15: Rise in consolidated indicators
Rise in consolidated indicators MMAD June 07 June 08 % change Net Banking Income 1 942.9 3 090.5 59.0% Net Banking income – constant basis 1 942.9 2 164.6 11.4% General Operating Expenses -1 198.5 -1 852.8 54.6% (including allowances for depreciation) General Operating Expenses (including allowances
Slide 16: Contribution by Business Line
BMCE BANK CONTRIBUTION BY BUSINESS LINE
Slide 17: Consolidation List
Consolidation List June 2007 June 2008 Full Integration BMCE CAPITAL 100.00% 100.00% BMCE CAPITAL BOURSE 100.00% 100.00% BMCE CAPITAL GESTION 100.00% 100.00% BANK OF AFRICA (BOA) - 35.00% LA CONGOLAISE DE BANQUE (LCB) 25.00% 25.00% MEDICAPITAL BANK 100.00% 1000.0% BMCE MADRID 100.00% 100.00% SALAFIN
Slide 18: Contribution to consolidated Net Earnings – Group Share
Contribution to consolidated Net Earnings – Group Share Contribution to consolidated Net Earnings June 2007 June 2008 % June 07 June 08 In MMAD In MMAD change In % In % BMCE BANK (DOMESTIC ACTIVITY) 273.7 276.3 0.9% 70.6% 58.9% SPECIALISED FINANCIAL SERVICES 61.5 73.3 19.2% 15.8% 15.6% ASSET MANAGEM
Slide 19: Earnings by Subsidiary
BMCE BANK EARNINGS BY SUBSIDIARY
Slide 20: Net Earnings by subsidiary
Net Earnings by subsidiary Domestic accounts In KMAD Net Earnings Net Earnings % change June 2007 June 2008 BMCE BANK DOMESTIC ACTIVITY 790 310 507 537 INTERNATIONAL ACTIVITIES BMCE Paris (including merger boni in 2008) 14 582 57 882 - Tangier Off Shore 24 219 15 329 -36.7% BDM 31 393 28 470 -9.3% L
Slide 21: Results by Business Line
BMCE BANK RESULTS BY BUSINESS LINE
Slide 22: Contribution by business line to consolidated Net Earnings
Contribution by business line to consolidated Net Earnings - Group Share Contribution Contribution June June In KMAD to consolidated to consolidated % change 2007 2008 net earnings net earnings Equity Equity June 2007 June 2008 BMCE Bank Domestic Activity 273 704 276 289 0.9% 70.6% 58.9% INTERNATION
Slide 23: BMCE Bank Domestic Activity
BMCE BANK BMCE BANK DOMESTIC ACTIVITY
Slide 24: Performances of the Bank in Morocco
Performances of the Bank in Morocco NBI NBI excluding non recurrent items in MMAD in MMAD -21.8% + 14.8% 2 184 1 707 1 707 1 488 June 2007 June 2008 June 2007 June 2008 Net Earnings Net Earnings excluding non recurrent items In MMAD In MMAD 790 - 35.8% + 37.1% 508 508 370 June 2007 June 2008 June 20
Slide 25: Deposits market shares by customer segment
Deposits market shares by customer segment BMCE Bank Deposits market share reaching 14.37% as of June 30th, 2008 vs 14.33% as of June 30th, 2007. Retail Bank BMCE Bank Corporate Bank Individuals MLA(*) Entreprise June June June June June June June June June June 2007 2008 2007 2008 2007 2008 2007 20
Slide 26: Loans market shares by customer segment
Loans market shares by customer segment BMCE Bank loans market share standing at 13.20 % as of June 30th, 2008 vs 13.27% as of June 30th, 2007. Retail Bank BMCE Bank Corporate Bank Individuals MLA Entreprise June June June June June June June June June June 2007 2008 2007 2008 2007 2008 2007 2008 20
Slide 27: Network Expansion: Branches & ATMs
Network Expansion Branches & ATMs Doubled network size over the last 4 years Branch Network* + 71 branches + 62 branches 429 ATMs Network** 358 + 93 ATMs 296 486 + 110 ATMs June 06 June 07 June 08 393 283 June 06 June 07 June 08 * 38 openings during the 9 first months of 2008 ** : Source : Manuel ex
Slide 28: Number of accounts & Electronic cards
Number of accounts & Electronic cards Number of accounts * Number of electronic cards (checking, current, saving accounts including MLA) June 07 / June 08: + 177.516 accounts June 07 / June 08: + 82.784 cards +9.9% +10.9% 914 937 1 806 284 1 628 768 June 07 June 08 832 153 June 07 June 08 * Source I
Slide 29: Bancassurance & Manual Exchange
Bancassurance & Manual Exchange Net number of contracts Total volume of manual exchange MMAD June 07 / June 08: + MMAD 993 +8.7% +15.0% +21.0% 507 815 467 367 5 731 406 520 4 738 June 06 June 07 June 08 June 07 June 08 28
Slide 30: Enterprises Market Import/Export – Business Centres
Enterprises Market Import/Export – Business Centres (MMAD)* Import Export June 07 / June 08: + MMAD 1.828 June 07 / June 08: + MMAD 1.090 +15.8% +24.5% 7 996 9 292 6 906 7 464 June 07 June 08 June 07 June 08 29
Slide 31: International activities: Trade Finance
International activities Trade Finance Trade finance flows increasing by 34%, from MAD 2.7 billions to MAD 3.6 billions. Trade Finance Flows trend + 0.9 MMAD +0.7 MMAD 3 592 2 683 1 965 June 06 June 07 June 08 30
Slide 32: BMCE Corporate Bank Outstanding Performances
BMCE Corporate Bank Outstanding Performances On balance sheet loans growth 25 466 19 047 15 346 Off balance sheet loans growth June 06 June 07 June 08 4 227 3 767 3 164 June 06 June 07 June 08 31
Slide 33: Market Activities
BMCE BANK Market Activities BMCE BANK a Pee Toe)
Slide 34: Growing market activities despite an unfavourable context
Growing market activities despite an unfavourable context Market share as of June 30th, 2008 34,6% 15,9% Primary market Bond market Interest rate activity : Traded volumes of MAD 691 billion on the monetary market and of MAD 18.5 billion on the bond market ; Exchange Desk : MAD 125 billion ; Structu
Slide 35: Subsidiaries’ Achievements: BMCE Capital 2008
Subsidiaries’ Achievements BMCE Capital 2008 : Continuum of performances BMCE Capital celebrates its 10th anniversary in 2008 BMCE Capital’s contribution to BMCE Bank Group earnings is generated from its management of BMCE Bank Trading room as well as its consolidated investment banking activities:
Slide 36: BMCE Capital Gestion and BMCE Capital Bourse
Subsidiaries’ achievements BMCE Capital Gestion and BMCE Capital Bourse As of June 30th, 2008, BMCE Capital Gestion, third asset management firm with a 14.5% market share ; Assets under management stood at MAD 21.3 billions as of June 30th,2008, distributed as follows : 53.5% in bond activity, 36.6%
Slide 37: A refocus on strategic Equity investments
BMCE BANK A refocus on strategic Equity investments
Slide 38: Equity portfolio book value
Equity portfolio book value Equity portfolio book value growth including shareholder’s accounts (in billion MAD) 2.8 2.6 2.3 2.3 2005 2006 2007 june-08 As of June 30th, 2008, BMCE Bank equity portfolio posted a book value of MAD 2.8 billion, corresponding to 59 firms. 37
Slide 39: Dividends & Dividend Yield
Dividends & Dividend Yield Dividends received & Dividend Yield In MMAD 4.1% 5.1% 6.5% 2.9% 2.3% 124 123 144 88 105 2003 2004 2005 2006 2007 Dividends Dividend Yield Dividends for 2008 expected to decrease by 18 MMAD, further to the disposal of RMA Watanya (1st contributor in 2007). 38
Slide 40: A sound Risk Management
BMCE BANK A sound Risk Management
Slide 41: Main achievements of Remedial Management
Main achievements of Remedial Management as of June 30th, 2008 Consolidation of management processes : Readjustment of flow recovering activities Monitoring of the Individuals, Mortgage, & Fogarim Portfolios Restructuring of the mass debt collection activity : Geographic segmentation of the portfoli
Slide 42: Net allowances for provisions - Domestic activity
Net allowances for provisions - Domestic activity - Change % In MMAD June 2007 June 2008 in change MMAD Total net allowances for provisions -166.0 53.8 - - Net allowances for provisions for -134.0 58.2 - - NPLs Allowances for provisions for NPLs -209.2 -98.6 110.6 -52.9% Losses on non covered loans
Slide 43: Improving coverage ratio & NPL ratio
Improving coverage ratio & NPL ratio 2 505 2 420 2 147 2 119 MMAD Improving coverage ratio from 85.7% to 87.6%. June 2007 June 2008 Provisions+ doubtful interests NPL 62 939 48 426 Significant enhancement of the NPL ratio from 5.2% to 3.9%. 2 505 2 420 MMAD June 2007 June 2008 Total gross loans excl
Slide 44: Sustained Investment program and hiring policy
BMCE BANK Sustained Investment program and hiring policy
Slide 45: Investment
Investment In MMAD June 2007 June 2008 % change Investments in buildings* 64.5 49.3 -23.6% Investments in Information Systems 62.3 51.3 -17.6% Investments in equipment 13.6 14.7 7.9% Other investments 1.0 0.5 -53% Total* 141.4 115.8 -18.1% *Excluding retention of collateral of 7 MMAD as of June 2008
Slide 46: Staff members growth in line with the Network expansion
Staff members growth in line with the Network expansion Staff members growth + 16.9% 4 343 4 009 3 713 June 2006 June 2007 June 2008 Staff members evolution + 16.9% over the rolling year, corresponding to + 630 employees + 8.3% compared to 2007, corresponding to + 334 employees 45
Slide 47: Hiring by profile
Hiring by profile Hiring by academic level June 2008 June 2007 Without Without Master High School High School Master High School Degree and degree degree degree and degree High school degree High school more 1% 3% more 0% 0% degree +2 17% 16% 46% Bachelor High School degree degree +2 Bachelor 34% 45
Slide 48: Significant improvement in efficiency
BMCE BANK Significant improvement in efficiency
Slide 49: Increasing Transaction / Employee / Day ratio
Increasing Transaction / Employee / Day ratio Transaction* in millions Staff number +15.4% 3 713 4 343 +17.8% 86 73 June 2007 June 2008 June 2007 June 2008 Transactions*/ Employee / Day + 37.7% 64 47 * Excluding ATMs June 2007 June 2008 48
Slide 50: Efficiency ratios Domestic Activity
Efficiency ratios Domestic Activity Deposits/Employee Loans/Employee MMAD MMAD -1.9% +8.6% 17,7 17,4 12,6 11,6 NBI/ Employee June 2007 June 2008 June 2007 June 2008 KMAD +1.9% * Customer Deposits reaching 393,1 400,6 * Customer loans standing at MMAD 75 502 as of June 2008 MMAD 54 536 as of June 200
Slide 51: A Socially Responsible Bank
BMCE BANK A Socially Responsible Bank
Slide 52: BMCE Bank Foundation – Medersat.com Programme Achievements
BMCE Bank Foundation –Medersat.com Programme Achievements & Success Indicators 100 school & preschool units built and equipped ; 330 teachers recruited and trained ; 11 300 primary school students; Literacy training given to 6000 persons of which 80% girls and women; 60 development community project
Slide 53: Thank you for attention
BMCE BANK Thank you for attention