Attijariwafa Bank Sa · CSEMA:ATW
Attijariwafa Bank Sa — Q1 2020 Earnings Presentation
49 slides from Attijariwafa Bank Sa's earnings presentation, June 2020
Slide 1: Financial Communication
Attijariwafa bank June 2020 Financial Communication 2020
Slide 2: Agenda
Agenda Key measures taken by the Moroccan government and Central Bank to manage the global Covid-19 pandemic and its socio- economic impacts Overview of Macroeconomic environment and banking sector growth in Morocco in 2020 Liquidity, Capital Adequacy Ratio and Financial Performance Back up 2
Slide 3: Overview of the measures taken by the different countries
Overview of the measures taken by the different countries Morocco is among the African countries to have implemented a significant number of regulatory measures to deal with the Covid-19 crisis Measures implemented USA Euro zone UK Egypt Tunisia EMCCA zone WAEMU Morocco zone Moratorium for loans rep
Slide 4: Main answers from public authorities to address the challenges of Covid-19
Main answers from public authorities to address the challenges of Covid-19 Creation of a special Covid-19 crisis Implementation of 2 cuts in key interest management fund rate (75 pbs) Suspension of the Economic Watch social security (MAD 35bn; 3% of GDP) Committee (CVE) contributions until June 30th
Slide 5: Focus on loans granted to finance VSMEs & Corporates
2 Focus on loans granted to finance VSMEs & Corporates 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 finance their expenses (Wages, suppliers) restarting the business Purpose during lockdow
Slide 6: Key measures taken by the Bank Al Maghrib (BAM) and impacts on AWB
2 Key measures taken by the Bank Al Maghrib (BAM) and impacts on AWB Monetarypolicy Monetary policy 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 announced by BAM Impacts on
Slide 7: An 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 allowed to mitigate the pandemic health impacts 2 Several econ
Slide 8: Key measures taken by AWB to support its costumers
Key measures taken by AWB to support its costumers In these unprecedented times AWB has taken a series of measures to support its clients within various segments and geographies in response to the extraordinary challenges of the COVID 19 and its socio-economic impacts All branches on the entire gl
Slide 9: Agenda
Agenda Key measures taken by the Moroccan government and Central Bank to manage the global Covid-19 pandemic and its socio- economic impacts Overview of Macroeconomic environment and banking sector growth in Morocco in 2020 Liquidity, Capital Adequacy Ratio and Financial Performance Back up 9
Slide 10: Macroeconomic environment in Morocco - Main indicators
Macroeconomic environment in Morocco - Main indicators Average 2016- 2020 Initial 2020 BAM Main indicators 2019 2020 Sc1 2020 Sc2 2021 2018 Forecast Forecast Real GDP growth (%) 2.7% 2.6% 3.5% -4.0% -6.2% -5.2% 4.2% Non agricultural GDP (%) 3.0% 3.3% 3.0% -4.3% -6.5% -5.3% 3.1% Agricultural GDP (%)
Slide 11: Macroeconomic environment in AWB's main countries of presence
Macroeconomic environment in AWB’s main countries of presence – Focus on economic growth Real GDP growth (%) 2019 2020 2021 Egypt 5.6% 2.0% 2.8% Tunisia 1.0% -4.3% 4.1% Ivory coast 6.9% 2.7% 8.7% Senegal 5.3% 3.0% 5.5% Cameroon 3.7% -1.2% 4.1% IMF (April 2020 data) 11 Attijariwafa bank presentation
Slide 12: Growth loans and deposits in the banking sector
Growth loans and deposits in the banking sector In MAD million New loans and new deposits from February to April since 2016 (total sector) Average Growth 2016 2017 2018 2019 2020 2016-2020 Factor Loans 5,521 12,125 11,242 8,851 9,435 20,488 x2 Deposits 4,511 7,410 -3,206 59 2,194 12,711 x6 Non-inter
Slide 13: Moroccan banking sector
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% +4% 899 925 950 914 949 6.8% 6.4% 5.9% 718 4.4% 2.7% 2.9% 3.8% Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Apr-20 2013 2017 2018 2019 Apr-19 Apr-20 Loans (MAD billion
Slide 14: Moroccan banking sector
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% +1% 6.7% 4.9% 4.9% 4.4% 253 263 271 266 269 3.8% 207 3.2% 1.1% 2013 2017 2018 2019 Apr-19 Apr-20 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Apr-20 Corpor
Slide 15: Yield curve trend between 2019 and June 2020
Yield curve trend between 2019 and June 2020 (treasury bill secondary market) June 19, 2020 Dec - 2019 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 2.99% Dec - 2019 2.94% June 19, 2020 2.80% 2.69%
Slide 16: Exchange rates trend between 2008 and 2020
Exchange rates trend between 2008 and 2020 EUR/MAD USD/MAD 11.38 11.32 11.25 11.23 11.19 11.17 11.11 11.15 10.97 10.95 10.90 10.89 10.78 10.65 10.95 10.10 9.91 9.57 9.57 9.33 9.78 9.04 8.58 8.43 8.36 8.15 January 2018: Flexible exchange rate regime with an adjustable horizontal 8.10 7.86 band within
Slide 17: Exchange rates trend in 2020
Exchange rates trend in 2020 EUR/MAD USD/MAD 11,2 10,8 10,7 10,8 10,7 10,3 -8.7% +6.1% -8.7% 9,6 9,8 9,4 9,7 March 9th, 2020: Widening the fluctuation band of the dirham by +/- 2.5% by +/- 5.0% compared to a Central rate set by BAM 01/02/2020 02/02/2020 03/02/2020 04/02/2020 05/02/2020 06/02/2020 17
Slide 18: Agenda
Agenda Key measures taken by the Moroccan government and Central Bank to manage the global Covid-19 pandemic and its socio- economic impacts Overview of Macroeconomic environment and banking sector growth in Morocco in 2020 Liquidity, Capital Adequacy Ratio and Financial Performance Back up 18
Slide 19: Moroccan banking sector liquidity: exogenous factors
Moroccan banking sector liquidity: exogenous factors Foreign reserves in USD bn Cash in MAD bn 28.9 29.5 3 3 11 278 13 253 25.8 25.3 25.9 26.5 Feb-20 Mar-20 Apr-20 Apr-20 Feb-20 Mar-20 Apr-20 May-20 Improvement of foreign reserves (even Significant increase of cash due to the monthly excluding I
Slide 20: Liquidity in a consolidated basis
Liquid assets of AWB Liquid and free assets (HQLA) in MAD billion Liquidity in the Bank 43 43 40 38 Dec 31, 2018 Dec 31, 2019 March, 2020 May, 2020 104% 127% 115% 155% Liquidity in a consolidated 74 basis 72 71 70 Dec 31, 2018 Dec 31, 2019 March, 2020 May, 2020 133% 151% 147% 160% XX% Liquidity Cove
Slide 21: Capital adequacy ratios
Capital adequacy ratios Capital Adequacy ratio Tier 1 CAR Consolidated basis 13.3% 13.1% Minimum 12.6% 12.5% 12.3% 13.0% 12.7% requirements*: 12% 10.1% 10.1% 10.8% 10.2% 10.3% 10.2% (11.5% during the 9.7% crisis ) Minimum requirements* Capital adequacy Tier 1 : 9% (8.5% during the crisis) 2014 2015
Slide 22: Agenda
Agenda Key measures taken by the Moroccan government and Central Bank to manage the global Covid-19 pandemic and its socio- economic impacts Overview of Macroeconomic environment and banking sector growth in Morocco in 2020 Liquidity, Capital Adequacy Ratio and Financial Performance 22
Slide 23: Q1 2020 consolidated P&L
Q1 2020 consolidated P&L Growth Rate at a (in MAD million) Q1 2019 Q1 2020 Growth Rate constant exchange rate Net banking income 5,952 6,041 1.5% 0.5% 1 Net interest income 3,602 3,897 8.2% 7.0% 2 Net fee income 1,269 1,266 -0.2% -0.8% Income from market activities 975 574 -41.2% -41.8% Others 106 3
Slide 24: Q1 2020 key indicators
Q1 2020 key indicators Q1 2019 Q1 2020 Net interest margin (bps)* 470 477 Non-interest income** (bps) 182 157 Cost income ratio 45.6% 46.7% NPL ratio 7.1% 7.3% Cost of risk 0.76% 1.30% RoA 1.30% 0.98% RoE 14.0% 9.9% Leverage 10.4x 9.8x (*) Net interest income / net customer loans; (**) Non interest
Slide 25: Growth of NBI by business line
Growth of NBI by business line X% +/- x% TCAM 17-19 MAD billion BMET Specialized Financial Companies -5.5% +5.3% +0.3% +2.3% 3.1 2.9 NBI 0.7 0.7 +1.5% +4.1% Q1 19 Q1 20 Q1 19 Q1 20 5.95 6.04 International Retail Banking Insurance +2.3% +5.0% +50.4% -10.7% Q1 19 Q1 20 2.0 2.0 0.3 0.5 Q1 19 Q1 20 Q1 1
Slide 26: Growth of Net Interest Income by business line
1 Growth of Net Interest Income by business line X% +/- x% TCAM 17-19 MAD billion BMET Specialized Financial Companies +7.2 +6.0% +6.5% +5.2% 1.9 2.0 Net interest income 0.3 0.3 +8.2% +7.6% Q1 19 Q1 20 Q1 19 Q1 20 3.6 3.9 International Retail Banking Insurance +7.8% +6.7% +6.6% +27.8% Q1 19 Q1 20 1.
Slide 27: Growth of loans by business line
1 Growth of loans by business line X% +/- x% TCAM 17-19 MAD billion BMET Specialized Financial Companies +3.6% +8.0% +12.4% +2.5% 204 211 Loans 31 35 +6.7% +6.4% 306 327 Q1 19 Q1 20 Q1 19 Q1 20 3.7% 3.8% 3.8% 3.6% International Retail Banking Insurance +14.0% +4.2% +1.2% +0.6% Q1 19 Q1 20 4.7% 4.8%
Slide 28: Growth of fees by business line
2 Growth of fees by business line X% +/- x% TCAM 17-19 MAD billion BMET Specialized Financial Companies +13.2% +12.5% -8.7% +1.6% Net fee income 0.61 0.69 -0.2% +3.7% 0.26 0.24 1.27 1.27 Q1 19 Q1 20 Q1 19 Q1 20 International Retail Banking +1.8% +2.6% Q1 19 Q1 20 0.54 0.55 Q1 19 Q1 20 28 Attijariwaf
Slide 29: Growth of income from market activities by business line
2 Growth of income from market activities by business line X% +/- x% TCAM 17-19 MAD billion BMET Specialized Financial Companies -35.8% +4.1% NA -35.0% Income from Market activities -41.2% -2.6% 0.80 0.98 0.51 0.001 0.007 Q1 19 Q1 20 Q1 19 Q1 20 0.57 International Retail Banking Insurance -28.1% +2.
Slide 30: Evolution of Cost of Risk by business line
4 Evolution of Cost of Risk by business line X% +/- X% CoR (%) x% TCAM 17-19 MAD million BMET Specialized Financial Companies 0.62% 0.98% 0.88% 1.58% +63.8% -25.9% +101.9% +18.8% Cost of Risk 550 336 0.76% 1.30% 146 73 -14.4% +82.5% 1,134 Q1 19 Q1 20 Q1 19 Q1 20 622 International Retail Banking Insu
Slide 31: IFRS consolidated financial statements NPLs and cost of risk
4 IFRS consolidated financial statements NPLs and cost of risk NPL ratio Cost of risk (in bps) 130 113 6.8% 7.1% 7.0% 7.0% 6.8% 6.6% 7.1% 7.3% 83 76 70 72 50 53 46 2014 2015 2016 2017 2018 2019 Q1 19 Q1 20 Average 2014 2015 2016 2017 2018 2019 Q1 19 Q1 20 2007- 2013 31 Attijariwafa bank presentation
Slide 32: 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) 65% 11% 24% 100% 306.4 327.0 +3.6% +12.4% +14.0% +6.7% Customer Loans 204.
Slide 33: 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 77.1 +27.3% +8.7% -5.8% 67.6 +14.0% Customer Loans 35.6 31.2 28.0 28.7 11.0 10.3 Q1 19 Q1 20 Q1 19 Q1 20 Q1 19 Q1 20 Q1 19 Q1 20 -0.6pt -0.5pt
Slide 34: Growth of NIGS by business line
5 Growth of NIGS by business line X% +/- x% TCAM 17-19 MAD million BMET Specialized Financial Companies -31.0% +7.9% -27.6% -0.3% 821 567 Net income group share 145 105 -23.8% 3.9% 1,423 Q1 19 Q1 20 Q1 19 Q1 20 1,085 International Retail Banking Insurance Q1 19 Q1 20 -15.0% +2.2% +64.1% -28.2% 425 3
Slide 35: RoA by business line
RoA by business line BMET International Retail Banking 1.97% 1.92% 1.97% 1.49% 1.08% 1.06% 1.03% 0.71% RoA 2018 2019 Q1 2019 Q1 2020 2018 2019 Q1 2019 Q1 2020 1.32% 1.31% 1.30% 0.98% Specialized Financial Companies Insurance 2018 2019 Q1 2019 Q1 2020 1.96% 2.07% 2.06% 1.33% 1.13% 0.78% 0.75% 0,74% 2
Slide 36: Back up
Back up 36 Attijariwafa bank presentation – June 2020
Slide 37: An early declaration of a state of health emergency and 3 months lockdown period (1/2)
1 An early declaration of a state of health emergency and 3 months lockdown period allowed to mitigate the pandemic health impacts (1/2) Declaration of the state of emergency and containment of the population Building on lessons learned from neighboring European countries, Morocco was amongst the fi
Slide 38: An early declaration of a state of health emergency and 3 months lockdown period (2/2)
1 An early declaration of a state of health emergency and 3 months lockdown period allowed to mitigate the pandemic health impacts (2/2) Declaration of the state of emergency and containment of the population Building on lessons learned from neighboring European countries, Morocco was amongst the fi
Slide 39: Mitigation of socio-economic impacts (1/3)
2 Several economic measures deployed by the government to support Moroccan companies including new government backed loans aiming at disbursing around MAD 82 billion (~9% 2019 loans) Mitigation of socio-economic impacts (1/3) Establishment of the Special Fund for the management of the Coronavirus pa
Slide 40: Mitigation of socio-economic impacts (2/3)
2 Several economic measures deployed by the government to support Moroccan companies including new government backed loans aiming at disbursing around MAD 82 billion (~9% 2019 loans) Mitigation of socio-economic impacts (2/3) Economic and fiscal measures The EWC enacted a number of economic and fisc
Slide 41: Various measures taken by the Moroccan government (3/3)
3 Various measures taken by the Moroccan government Mitigation of socio-economic impacts (3/3) Social measures The EWC opted for the implementation of a series of actions aimed at reducing the economic and social impacts of the containment measures on affected employees and workers operating in both
Slide 42: Various social measures deployed by the government
3 Various social measures deployed by the government in order to help and support ~5.5m Moroccan vulnerable households Mitigation of socio-economic impacts Health measures On the recommendation of the Technical and Scientific Committee for the Prevention and Control of Influenza and Severe Acute Res
Slide 43: Various social measures deployed by the government
3 Various social measures deployed by the government in order to help and support ~5.5m Moroccan vulnerable households Mitigation of socio-economic impacts In terms of communication and raising public awareness, the public authorities have opted for frequent and transparent communication while mak
Slide 44: Growth of expenses by business line
X% +/- 3 Growth of expenses by business line X% Cost-Income ratio x% TCAM 17-19 MAD million BMET Specialized Financial Companies +0.2% +5.7% -0.3% +0.1% Expenses 1,357 1,359 +6.0% 2,716 2,823 285 285 +3.9% Q1 2019 Q1 2020 Q1 2019 Q1 2020 44.3% 46.9% 43.5% 43.2% International Retail Banking Insurance
Slide 45: Cost of risk by business line between 2011 and Q1 2020
Cost of risk by business line between 2011 and Q1 2020 xx% Contribution to gross customer loans (end of period) 71% 71% 70% 69% 66% 66% 64% 66% 66% 67% 65% 1.15% 0.98% 0.86% 0.76%0.76%0.67% BMET 0.62% 0.37%0.38% 0.35%0.31% 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 19 Q1 20 Cost of risk 18% 17%
Slide 46: RoA by business line between 2011 and Q1 2020
RoA by business line between 2011 and Q1 2020 xx% Contribution to total assets (end of period) 66% 68% 67% 66% 64% 62% 61% 62% 61% 62% 59% 1.2% 1.1% 0.9% 1.0% 1.0% 1.0% 1.0% 1.1% 1.1% 1.0% BMET 0.7% 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 19 Q1 20 19% 18% 20% 20% 22% 22% 24% 23% 24% 23% 25%
Slide 47: Net interest margin by business line between 2011 and Q1 2020
Net interest margin by business line between 2011 and Q1 2020 xx% Contribution to net customer loans (end of period) 72% 72% 71% 70% 66% 66% 65% 67% 67% 67% 65% 3.8% 3.6% 3.7% 3.7% 4.0% 3.8% 3.8% 3.6% 3.6% 3.7% 3.8% BMET 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 19 Q1 20 Net interest margin/ c
Slide 48: Net fee income by business line between 2011 and Q1 2020
Net fee income by business line between 2011 and Q1 2020 xx% Contribution to net banking income 54% 55% 54% 56% 54% 53% 50% 50% 51% 51% 48% 23.9% 23.7% 19.1%18.7%18.2% 18.0%20.3%21.0%21.4% 19.8% 16.2% BMET 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 19 Q1 20 Net fee income/ Net banking income 24
Slide 49: Cost-Income ratio by business line between 2011 and Q1 2020
Cost-Income ratio by business line between 2011 and Q1 2020 xx% Contribution to net banking income 54% 55% 54% 56% 54% 53% 50% 50% 51% 51% 48% 44.1% 43.1% 44.5% 42.0% 46.7% 47.4% 47.1% 47.6% 47.8% 44.3% 46.9% BMET 2011 2012 2013 2014 2015 2016 2017 2018 2019 Q1 19 Q1 20 24% 25% 26% 26% 28% 29% 33% 3