Attijariwafa Bank Sa · CSEMA:ATW
Attijariwafa Bank Sa — H1 2022 Earnings Presentation
54 slides from Attijariwafa Bank Sa's earnings presentation, June 2022
Slide 1: Attijariwafa bank Financial Communication June 2022
Attijariwafa bank June 2022 Financial Communication 2022
Slide 2: Agenda
Agenda Overview of macroeconomic environment in AWB’s countries of presence th IFRS consolidated financial statements as of June 30, 22 Liquidity, Capital Adequacy Ratio Back up 2
Slide 3: Macroeconomic environment in Morocco: Outlook and main indicators
Macroeconomic environment in Morocco Outlook and main indicators Main indicators 2019 2020 2021 H1 2022 YoY GDP growth (%) 2.9 -7.2 7.9 0.31 Non-agricultural GDP (%) 4.0 -6.9 6.6 2.21 Agricultural GDP (%) -5.0 -8.1 17.8 -14.31 YoY Domestic consumption Growth (%) 2.2 -5.6 8.2 1.11 YoY Export growth (
Slide 4: Traditional and new export-oriented sectors
X% CAGR 2013-2021 New and traditional export-oriented sectors X% Change H1 21/H1 22 2013 2021 H1 2021 H1 2022 (In MAD bn) +13.1% +30.1% New export-oriented sectors Automotive +8.7% +62.5% Aeronautics +8.5% +31.8% Electronic +10.0% +84.3% Traditional export-oriented sectors Phosphate +8.4% +24.8% Agr
Slide 5: Strong resilience of foreign currency reserves
Strong resilience of foreign currency reserves Change (%) 2019 2020 2021 H1 2021 H1 2022 H1 21/22 Imports 527.5 438.3 537.3 300.4 428.5 +42.3% Imports excl. Energy 451.2 388.4 461.7 261.8 340.3 +30.0% Exports 344.8 318.7 387.2 223.8 320.0 +42.7% Tourism 78.8 36.5 34.3 13.0 36.7 +179.1% Remittances f
Slide 6: Strong resilience of foreign currency reserves
Strong resilience of foreign currency reserves Auto exports (MAD billion) +19% in 2022 1 Xx % GDP Significant growth of 6.7% 7.5% 8.9% 7.0% 5.4% 5.5% 5.9% auto exports 2.8% 3.0% 3.5% 4.4% 4.9% 2.3% 100 59 65 80 73 84 18 23 25 32 40 49 55 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 20
Slide 7: Exchange rates trend in 2020 and 2022
EUR/MAD Exchange rates trend in 2020 and 2022 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 6% between 2021 and 2023
Budget deficit of 6% between 2021 and 2023 2022/2021 • +19.8%* of tax • +85.2%* of non- • +12.1%* of public revenues tax revenues investment 2021/2020 • +7.8% • +38.6% of non- • of tax revenues tax revenues Budget deficit from 2011 to 2022 (in % GDP) -3,6% -4,0% -3,9% -4,1% -4,3% -4,6% -4,9% -5,2% -
Slide 9: Macroeconomic environment in Morocco: Inflation
Macroeconomic environment in Morocco Outlook and main indicators Inflation (%) +7.2% in June 2022 YoY + 8.0% in August 2022 5,5 YoY 6,3 5 4,5 4 3,5 3 2,5 2,5 1,9 1,9 2 1,6 1,6 1,3 1,4 1,5 0,9 0,9 Average between 1 0,7 0,7 2010 and 2021 : 1.1% 0,4 0,5 0,2 0 2010 2011 2012 2013 2014 2015 2016 2017
Slide 10: Sovereign bond yields curve trend between Dec. 2020 and June 2022
Sovereign bond yields curve trend between Dec - 2020 Dec. 2020 and June 2022 Dec - 2021 June - 2022 -75 bps in key interest rate in 2020 + 50 bps in key interest rate to 2.0% (September 2022) Mandatory cash reserve at 0% of deposits vs. 2% before 2,80% June- 2022 2,69% Dec - 2020 2,55% Dec - 2
Slide 11: Macroeconomic environment in Morocco: Outlook and main indicators
Macroeconomic environment in Morocco Outlook and main indicators Main indicators 2019 2020 2021 2022F 2023F 2024F (3.9) (4.1) (4.1) YoY GDP growth (%) 2.9 -7.2 7.9 0.8 3.7 2.5 ( ) Initial 2024 Forecast before Ukrainian crisis Non agricultural GDP (%) 4.0 -6.9 6.6 2.5 1.6 2.1 Agricultural GDP (%) -5.
Slide 12: Macroeconomic environment in AWB's main countries of presence – economic growth
Macroeconomic environment in AWB’s main countries of presence – Focus on economic growth Real GDP growth (%) 2020 2021 2022F 2023F Egypt 3.6% 3.3% 4.6% 4.0% Tunisia -9.3% 3.0% 2.0% 1.7% Ivory coast 2.0% 7.0% 5.0% 5.5% Senegal 1.3% 6.1% 4.5% 5.9% Cameroon -1.5% 3.6% 5.0% 5.4% IMF, BAD, BEAC, Internal
Slide 13: Inflation rate in AWB's main regions of presence
Inflation rate in AWB’s main regions of presence EGYPT TUNISIA 29,5 Egypt -3.5 pts -1.2 pt +4.5 pts +1.9 pt Tunisia -1.1 pt +0.1pt +1.3 pt7,0 -0.5 pt 30 8 7,3 6,7 6,5 25 5,3 5,6 5,7 6 20 14,4 15 10,9 4 9,2 9,0 10 5,7 4,5 2 5 0 0 2017 2018 2019 2020 2021 2022F 2023F 2017 2018 2019 2020 2021 2022F 202
Slide 14: Monetary policy in AWB's main regions of presence
Monetary policy in AWB’s main regions of presence Monetary policy Main countries of presence 2020-2021 2022 25bps cut of key interest rate in March and Morocco +50 bps in September to 2.0% -50 bps in June 2020 to 1.50% 100 bps cut of key interest in March and -50 Tunisia +75 bps in May to 7.0% bps i
Slide 15: Tunisia: Main components of the balance of payments and evolution of TND
Tunisia : Main components of the balance of payments and evolution of TND Trade balance (TND billion) Exports Imports Trade balance 30,4 28,4 40,2 18,2 24,8 22,8 6 months 2020 - 6,6 6 months 2021 - 7,5 6 months 2022 - 11,8 Current account deficit Foreign currency assets trend between 2018 and 2022 X
Slide 16: Egypt: Main components of the balance of payments and evolution of EGP
Egypt : Main components of the balance of payments and evolution of EGP Trade balance ( USD billion) Tourism receipts (USD billion) 20,0 30,0 % Coverage ratio Tourism receipts Xx % Current account receipts* % Imports Exports % 18,0 25,0 % 23,3% 16,0 36% 33% 37% 41% 43% 42% 41% 40% 49% 14,0 20,4% 20,
Slide 17: 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% +4% 1 053 1 029 1 069 925 950 1 000 718 Jul-22 2013 2018 2019 2020 2021 Jul 21 Jul-22 CAGR 13-17 +7% CAGR 17-19 +4% +10% +8% Non-be
Slide 18: Moroccan banking sector YoY growth
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% +2.8% +2% 263 271 272 280 279 284 207 2013 2018 2019 2020 2021 Jul 21 Jul-22 Jul-22 Corporate loans(2) (MAD billion) Co
Slide 19: Moroccan banking sector YoY growth
YoY growth Moroccan banking sector X% CAGR YoY growth X% Annual change Working capital loans (MAD billion) Working capital loans: YoY growth CAGR 13-16 -1% CAGR 16-19 +3% +8% +11% -0.2% +7% +8% +11% +12% 247 218 220 183 197 172 170 Jul-22 2013 2018 2019 2020 2021 Jul 21 Jul-22 Investment loans (MAD
Slide 20: Agenda
Agenda Overview of macroeconomic environment in AWB’s countries of presence th IFRS consolidated financial statements as of June 30, 22 Liquidity, Capital Adequacy Ratio Back up 20
Slide 21: H1 2022 consolidated P&L
H1 2022 consolidated P&L Growth Rate at a (in MAD million) H1 2021 H1 2022 Growth Rate constant scope Net banking income 12,469 13,073 4.8% 4.2% Net interest income 8,019 8,433 5.2% 4.6% Net fee income 2,546 2,729 7.2% 7.4% Income from market activities 2,017 1,815 -10.0% -9.8% Others -113 96 NA NA
Slide 22: H1 2022 key financial indicators
H1 2022 key financial indicators H1 2019 H1 2020 H1 2021 H1 2022 Net interest margin* (bps) 457 477 469 477 53.9% Cost income ratio 46.8% 44.7% 43.8% 44.6%** NPL ratio 6.8% 7.5% 7.4% 7.8% Cost of risk 0.54% 1.70% 1.03% 0.87% 0.57% RoA 1.32% 1.10% 1.23% 0.83%** 6.0% RoE (***) 14.6% 12.1% 13.8% 8.8%**
Slide 23: NBI by business line
NBI by business line X% +/- BMET Specialized Financial Companies MAD billion -0.1% +3.5% -2.9% -0.3% +7.4% -0.6% 6.2 6.2 6.4 6.2 NBI 1.3 1.3 1.4 1.3 +5.1% +0.7% +4.8% H1 19 H1 20 H1 21 H1 22 H1 19 H1 20 H1 21 H1 22 12.4 12.5 13.1 11.8 • North Africa : +14.9% • EMCCA : +20.9% • WAEMU : +9.2% Internat
Slide 24: Net Interest Income by business line
X% +/- Net Interest Income by business line MAD billion BMET Specialized Financial Companies +5.1% +3.0% +0.8% +4.4% +4.8% -5.4% 3.9 4.1 4.2 4.2 Net interest income 0.6 0.6 0.6 0.6 +8.6% +1.8% +5.2% 7.9 8.0 8.4 7.3 H1 19 H1 20 H1 21 H1 22 H1 19 H1 20 H1 21 H1 22 3.6% 3.8% 3.7% 3.7% 3.8% 3.7% 3.8% 3.
Slide 25: Loans by business line
Loans by business line X% +/- MAD billion BMET Specialized Financial Companies +2.1% +5.7% +0.2% +8.6% +2.1% +3.3% 212 217 229 229 31 33 34 35 Loans H1 19 H1 20 H1 21 H1 22 H1 19 H1 20 H1 21 H1 22 +4.0% +3.6% +3.4% 330 342 353 3.6% 3.8% 3.7% 3.7% 3.8% 3.7% 3.8% 3.4% 318 International Retail Banking
Slide 26: Deposits by business line
Deposits by business line X% +/- • Free-interest deposits : +9.5% MAD billion BMET Specialized Financial Companies -0.2% +7.7% +4.3% +12.5% +2.8% +2.7% 241 240 259 270 Deposits 5 6 6 6 H1 19 H1 20 H1 21 H1 22 H1 19 H1 20 H1 21 H1 22 +3.5% +7.3% +5.6% 369 389 332 344 • Free-interest deposits : +15.3%
Slide 27: Net interest margin by business line between 2012 and H1 2022
Net interest margin by business line between 2012 and H1 2022 72% 71% 70% 66% 66% 65% 67% 67% 66% 65% 67% 65% xx% Contribution to net customer loans (end of period) 4.0% 3.8% 3.8% 3.6% 3.7% 3.7% 3.6% 3.7% 3.7% 3.7% 3.7% 3.7% BMET 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 H1 21 H1 22 Net inte
Slide 28: Fees by business line
X% Annual change Fees by business line MAD billion BMET Specialized Financial Companies -6.6% +16.8% +7.1% -7.9% +9.9% -5.0% Net fee income 1.5 1.3 1.2 1.4 -9.4% +14.3% ¨+7.2% 0.5 0.4 0.5 0.5 2.5 2.7 2.5 2.2 H1 19 H1 20 H1 21 H1 22 H1 19 H1 20 H1 21 H1 22 International Retail Banking -7.3% +10.7% +1
Slide 29: A rigorous cost control based on an ambitious saving plan
A rigorous cost control based on an ambitious saving plan…. MAD million BMET Specialized Financial Companies Cost-Income ratio on a consolidated basis: -3.0pts between H1 19 and H1 22 -5.0% -1.7% +0.3% +2.9% +5.8% -4.1% Cost-Income ratio BMET: -2.3pts between H1 19 and H1 22 2,002 2,114 2,112 2,165
Slide 30: Leveraging on digital transformation
…and leveraging on digital transformation Active digital clients (% of total clients) 51% 55% 27% 33% 39% ~55% of active digital customers 2018 2019 2020 2021 H1-2022 # of connections (million ; on a monthly basis) +59% +20% ** 21 25 More than 25 million connections per month in 2022 first half
Slide 31: 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) 65% 10% 24% 100% +2.1% +5.7% +3.4% +8.6% +2.1% +3.3% +7.0% -0.4% +
Slide 32: 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 +16.2% -0.4% +11.4% +2.9% +3.1% +4.5% -7.9% -11.5% +34.5% +7.0% -0.4% +12.9% Customer Loans 76.0 75.7 85.4 71.1 35.6 35.5 39.6 30.7 29
Slide 33: Credit risk exposure, staging & coverage
Credit risk exposure, staging & coverage In MAD million, figures as of June 30,2022 GROUP Exposure at default Coverage Bucket 1 Bucket 2 Bucket 3 Total Bucket 1 Bucket 2 Bucket 3 Total Loans 325,006 26,962 29,983 381,951 0.7% 16.3% 72.1% 7.4% Off balance loans 173,545 12,247 1,060 186,852 0.3% 1.4%
Slide 34: Cost of risk by business line between 2012 and H1 2022
Cost of risk by business line between 2012 and H1 2022 xx% Contribution to net customer loans (end of period) 71% 71% 70% 69% 66% 66% 64% 66% 65% 65% 65% 67% 65% 1.15% 1.10% 0.86% 0.90% 0.94% 0.76% 0.76% 0.82% 0.67% BMET +16 bps 0.38% 0.35% 0.32% Average 12-19: 0.66% 2012 2013 2014 2015 2016 2017 20
Slide 35: NIGS by business line
X% Annual change NIGS by business line MAD million BMET Specialized Financial Companies x% RoA +1.10% +0.72%* +0.87% +0.87% +2.12% NA +1.82% +1.97% -68.0% +164.0% +4.0% -93.0% NA +5.0% Net income group share 1,779 1,503 1,564 +1.32% +0.83%* +1.10% +1.23% 569 301 21 272 286 -57.5% +109.3% +16.2% 2,93
Slide 36: RoA by business line between 2012 and H1 2022
RoA by business line between 2012 and H1 2022 xx% Contribution to total assets (end of period) 68% 67% 66% 64% 62% 61% 62% 60% 61% 60% 60% 62% 1.1% 1.1% 1.1% 0.9% 1.0% 1.0% 1.0% 1.0% 0.8% 0.9% 0.9% ** BMET 0.6% 2012 2013 2014 2015 2016 2017 2018 2019* 2020 2021 H1 21 H1 22 18% 20% 20% 22% 22% 24% 23
Slide 37: RoA below normative level due to a still non-normative CoR
RoA below normative level due to a still non-normative CoR Net banking income / Total assets -20 bps Gross Operating Income / Total assets 4.46% 4.25% +2 bps 2.37% 2.39% H1 2019 H1 2022 RoA Expenses / Total assets H1 2019 H1 2022 - 8 bps -22 bps 2.08% 1.86% 1.32% 1.23% H1 2019 H1 2022 H1 2019 H1 202
Slide 38: Agenda
Agenda Overview of macroeconomic environment in AWB’s countries of presence th IFRS consolidated financial statements as of June 30, 22 Liquidity, Capital Adequacy Ratio Back up 38 Attijariwafa bank presentation – H1 2022 Results
Slide 39: Solid liquidity position
Solid liquidity position Liquid and free assets (HQLA) in MAD billion Bank in Morocco 74 78 67 57 43 43 35 Dec 31, 2018 Dec 31, 2019 March 31, 2020 Dec 31, 2020 June 30, 2021 Dec 31, 2021 June 30, 2022 104% 127% 115% 202% 175% 184% 169% Consolidated basis 113 122 95 106 70 72 71 Dec 31, 2018 Dec 31,
Slide 40: 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 210bps Capital Adequacy ratio Consolidated basis 12.6% 12.5% 13.3% 13.0% 13.1% 13.4% 13.6% 13.0% Minimum 12.3% 10.8% 10.7% 11.3% 11.1% requirements: 1
Slide 41: A solid, resilient and diversified business model (1/2)
A solid, resilient and diversified business model (1/2) Main indicators H1 22 vs H1 21 H1 22 vs H1 19 Net banking +4.8% Satisfactory growth of the top line NIM (%)* +8 bps +20 bps and resilient margins Fees +7.2% Cost-income ratio Group -0.9 pt -3.0 pts Cost-income ratio BMET +1.4 pt -2.3 pts St
Slide 42: A solid, resilient and diversified business model (2/2)
A solid, resilient and diversified business model (2/2) Main indicators Bank in Morocco LCR 169% (+69 pts over minimum) CAR 15.92%* Tier1 13.21%* Buffer above Tier1 min +421 bps (x2 since 2018) Sound liquidity and capital position On a consolidated basis LCR 179% (+79 pts over minimum) CAR 13.0% *
Slide 43: Agenda
Agenda Overview of macroeconomic environment in AWB’s countries of presence th IFRS consolidated financial statements as of June 30, 22 Liquidity, Capital Adequacy Ratio Back up 43 Attijariwafa bank presentation – H1 2022 Results
Slide 44: Macroeconomic environment in Morocco: Outlook and main indicators
Macroeconomic environment in Morocco x% YoY growth Outlook and main indicators YoY GDP growth 2 quarters of recession +2.7% +3.8% +3.0% +2.1% -0.8% -15.2% -7.3% -5.2% +2.0% +14.2% +8.7% +7.6% +0.3% Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 202
Slide 45: Exports: World 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 46: Sovereign bonds yield curve trend since 2013
Sovereign bonds yield curve trend since 2013 Key interest rate 52w Sovereign bonds 10y Sovereign bonds 3,25% 3,92% 5,62% 3,00% 2,75% 2,50% -1.25pt -2.13pts -3.18pts 2,25% 2,25% 2,64% 2,62% 2,39% 2,00% 2,00% 2,29% 2,46% 3,54% 2,38% 3,44% 3,38% 3,29% 3,19% 1,79% 1,61% 2,69% 1,50% 1,61% 2,38% 2,44% 1,5
Slide 47: Net interest margin by business line between 2012 and H1 2022
Net interest margin by business line between 2012 and H1 2022 xx% Contribution to total assets (end of period) 68% 67% 66% 64% 62% 61% 62% 60% 61% 60% 60% 59% 2.6% 2.5% 2.5% 2.6% 2.5% 2.4% 2.3% 2.4% 2.4% 2.4% 2.4% 2.3% BMET 2012 2013 2014 2015 2016 2017 2018 2019* 2020 2021 H1 21 H1 22 Net interest
Slide 48: Net fee income by business line between 2012 and H1 2022
Net fee income by business line between 2012 and H1 2022 xx% Contribution to net banking income 55% 54% 56% 54% 53% 50% 50% 51% 49% 51% 51% 48% 24.0% 22.8% 23.9% 22.4% 24.7% 18.7% 18.2% 20.3% 21.0% 21.4% 16.2% 18.0% BMET 2012 2013 2014 2015 2016 2017 2018 2019* 2020 2021 H1 21 H1 22 Net fee income/
Slide 49: Income from market activities by business line
Income from market activities by business line X% +/- MAD billion BMET Specialized Financial Companies -9.9% -0.2% -18.3% NA -43.2% +71.1% Income from Market activities 1.54 1.39 1.39 1.13 0.002 0.011 0.006 0.010 -12.0% +10.0% -10.0% H1 19 H1 20 H1 21 H1 22 H1 19 H1 20 H1 21 H1 22 2.08 1.83 2.02 1.8
Slide 50: 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) 7.8% 8.1% 7.4% 7.8% 151 6.8% 7.1% 7.0% 7.0% 6.8% 6.6% 113 103 97 83 87 70 72 50 53 46 2014 2015 2016 2017 2018 2019 2020 2021 H1 21 H1 22 Average 2014 2015 2016 2017 2018 2019 2020 2021 H1 21H1 22 2007-2013
Slide 51: Cost-Income ratio by business line between 2012 and H1 2022
Cost-Income ratio by business line between 2012 and H1 2022 55% 54% 56% 54% 53% 50% 50% 51% 49% 51% 51% 48% xx% Contribution to net banking income 43.1% 44.5% 42.0% 46.7% 47.4%47.1%47.6%47.8% 43.7%43.4% 41.5% 42.8% ** BMET 2012 2013 2014 2015 2016 2017 2018 2019* 2020 2021 H1 21 H1 22 25% 26% 26% 28
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: 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 -17.4% -12.5% NA -72.9% -50.8% Cost of Risk 1,392 1,149 1,005 766 453 208 110 102 NA -37.0% -12.9% H1 19 H1 20 H1 21 H1 22 H1 19 H1 20 H1 21 H1 22 3,021 0.40% 1.21% 0.94% 0.82%
Slide 54: Attijariwafa bank share price performance
Attijariwafa bank share price performance 180 Base 100 MASI ATTIJARIWAFA BANK Dec 12 155 130 105 80 12/31/15 12/31/16 12/31/17 12/31/18 12/31/19 12/31/20 12/31/21 09/21/22 Share price performance 3 months 6 months 12 months Attijariwafa bank +1.6% -4.1% -7.9% Masi +0.7% -4.8% -5.3% 21st Sept, 2021 2