Attijariwafa Bank Sa · CSEMA:ATW
Attijariwafa Bank Sa — H1 2019 Earnings Presentation
45 slides from Attijariwafa Bank Sa's earnings presentation, September 2019
Slide 1: Financial Communication
Attijariwafa bank As of 30 June 2019 Financial Communication 2019
Slide 2: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2019 Regulatory ratios as of June 30, 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 (%) 2017 2018 2019F North Africa 9.6 WAEMU1 Africa 3.6% 3.5% 4.0% EMCCA 2 North Africa 4.9% 4.3% 4.4% 6.3 6.2 6.5 6.6 West Africa 2.7% 3.3% 3.6% 6.1 6.3 6.3 6.6 WAEMU1 6.6% 6.3% 6.6% 4.9 4.4 6.0 4.7 4
Slide 4: Macroeconomic environment in AWB's main African markets
Macroeconomic environment in AWB’s main African markets 2019P figures 1 3 2 4 Morocco Tunisia Mauritania Egypt Senegal Burkina-Faso North Africa GDP growth : +2.7% GDP growth :+2.7% GDP growth : +6.4% GDP growth : +5.5% GDP growth : +6.9% GDP growth : +6.0% GDP/cap (USD) : 3,538 GDP/cap (USD) : 3,56
Slide 5: Macroeconomic environment in Morocco in 2019
1 Macroeconomic environment in Morocco in 2019 Main economic indicators Economic growth 2017 2018 2019F GDP growth rate of 2.7% in 2019F Real GDP growth 4.2% 3.0% 2.7% Pick up in non-agricultural growth: +3.2% in 2019F Agricultural GDP 13.1% 2.7% -2.1% Low inflation rate (0.1% in June 2019 and 0.8%
Slide 6: Drop in government bond yields in H1 2019
1 Drop in government bond yields in H1 2019 Interest rate environment Dec 2015 Dec 2016 Dec 2017 Dec 2018 June 2019 Interest rate 2.50% 2.25% 2.25% 2.25% 2.25% 13w 2.48% 2.19% 2.20% 2.34% 2.32% 26w 2.51% 2.24% 2.35% 2.40% 2,31% 52w 2.64% 2.38% 2.39% 2.46% 2.35% -50 à -20 bps 0 à +20 bps +5 à +14 bps
Slide 7: Moroccan financial market in H1 2019
1 Moroccan financial market in H1 2019 Financial market trends in H1 2019 2017 2018 June 2019 Stock exchange market’s trend in H1 2019: MASI 6.4% -8.3% -0.7% - -0.7% Ytd decrease of MASI as of 30 June 2019 MADEX 5.8% -8.6% -0.5% (+1.92% Ytd as of 11 September 2019) Trading volume (MAD bn) 69.7 52.7
Slide 8: Moroccan banking sector
AWB market 1 Moroccan banking sector shares in Morocco YoY growth X% CAGR X% +/- Deposits (MAD billion) Deposits: YoY growth +5% +3% +4% 26.0% 26.5% 25.5% 26.7% 26.3% 26.2% 26.0% 26.2% 26.0% 26.7% 26.7% 26.5% 27.0% 26.9% 842 867 840 871 587 6.2% 6.5% 6.5% 5.0% 5.3% 4.3% 5.0% 3.2% 3.2% 3.9% 4.1% 3.0%
Slide 9: Moroccan banking sector
AWB market 1 Moroccan banking sector shares in Morocco YoY growth X% CAGR X% +/- Retail loans (1) (MAD billion) Retail loans: YoY growth stable YoY growth +7% +3% +3% 24.3% 24.7% 24.2% 24.0% 23.4% 23.3% 23.0% 23.3% 23.5% 23.9% 24.1% 24.3% 24.1% 24.3% 249 258 255 262 146 9.7% 7.2% 6.3% 6.6% 5.0% 3.5%
Slide 10: Confirmation of the slight improvement of NPLs in Morocco
1 Confirmation of the slight improvement of NPLs in Morocco NPL ratio (Moroccan banking sector) P1 P2 P3 19.6% 8.61% 7.56% 7.91% 7.60% 7.47% 7,60% 6.92% 6.33% 6.00% 6.03% 5.04% 4.94% 4.99% 2004 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 H1 19 P1 Significant improvement of the Morocc
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 2018 (7.5% in August New Floating 2019) 5.5% 5.3% exchange rate regime Acceleration of in November 2016 economic 4.2% 14% 12% growth and 12%
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 2017 2018 2019F GDP growth recovery to 2.7% in 2019F and 3.2% in 2020F Real GDP growth 2.0% 2.5% 2.7% Stable inflation rate to 7.5% in 2019F Increase of Foreign currency exchange reserves to more t
Slide 13: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2019 Regulatory ratios as of June 30, 2019 Attijariwafa bank share price performance 13
Slide 14: H1 2019 consolidated P&L
H1 2019 consolidated P&L Growth Rate at a (in MAD million) H1 2018 H1 2019 Growth Rate constant exchange rate Net banking income 11,294 11,777 4.3% 6.0% 1 Net interest income 6,848 7,254 5.9% 7.6% 2 Net fee income 2,514 2,459 -2.2% 0.1% Income from market activities 2,137 2,083 -2.6% -1.5% Others -2
Slide 15: Exceptional items impacting the 2019 consolidated financial statements
Exceptional items impacting the 2019 consolidated financial statements for the first time Main items Impact NIGS impact NIGS change impact (MDH) Entry into force of the new social cohesion tax -72 -2.6 pts in Morocco IFRS adjustments regarding the impact on earnings of the discount granted to employ
Slide 16: H1 2019 key indicators
H1 2019 key indicators H1 2018 H1 2019 Net interest margin (bps)* 470 457 Non-interest margin (bps) 305 285 Cost income ratio 46.4% 46.8% NPL ratio 6.9% 6.8% Cost of risk 0.65% 0.54% ROA 1.41% 1.32% ROE 16.4% 14.6% Leverage 10.8 10.3 (*) Net interest income / net customer loans 16 - H1 2019 Results-
Slide 17: Growth of NBI by business lines
Growth of NBI by business lines X% +/- MAD billion BMET Specialized Financial Companies +11.4% +0.7% +6.0% at a constant 5.6 6.2 exchange rate NBI 1.3 1.3 +4.3% 11.3 11.8 H1 18 H1 19 H1 18 H1 19 International Retail Banking Insurance +1.0% at a -3.6% constant -9.2% H1 18 H1 19 exchange rate 3.9 3.8
Slide 18: Growth of Net Interest Income by business lines
1 Growth of Net Interest Income by business lines X% +/- MAD billion BMET Specialized Financial Companies +9.8% +3.5% +7.6% at a 3.5 3.9 constant Net interest income exchange rate 0.6 0.6 +5.9% 7.3 H1 18 H1 19 H1 18 H1 19 6.8 International Retail Banking Insurance +3.8% at a -0.5% constant +12.7% H1
Slide 19: Growth of loans by business lines
1 Growth of loans by business lines X% +/- MAD billion BMET Specialized Financial Companies +11.0% +4.8% 191 212 +9.6% at a constant Loans exchange rate 29 31 +8.9% 318 June-18 June-19 June-18 June-19 292 International Retail Banking Insurance +7.3% at a +4.6% constant +12.4% June-18 June-19 exchang
Slide 20: Growth of fees by business lines
2 Growth of fees by business lines X% +/- MAD billion BMET Specialized Financial Companies +0.1% at a +12.6% -3.6% constant Net fee income exchange rate 1.32 1.17 -2.2% 0.50 0.48 2.51 2.46 H1 18 H1 19 H1 18 H1 19 International Retail Banking -1.3% at a -6.0% constant H1 18 H1 19 exchange rate 1.10 1
Slide 21: Growth of income from market activities by business lines
2 Growth of income from market activities by business lines X% +/- MAD billion BMET Specialized Financial Companies -1.5% at a +21.3% -78.9% constant 1.54 Income from Market exchange rate 1.27 activities -2.6% 2.14 2.08 0.009 0.002 H1 18 H1 19 H1 18 H1 19 International Retail Banking Insurance -30.0
Slide 22: Evolution of Cost of Risk by business lines
4 Evolution of Cost of Risk by business lines X% +/- X% CoR (%) MAD million BMET Specialized Financial Companies 0.54% 0.40% 0.98% 0.67% -18.1% -28.6% -9.5% at a constant Cost of Risk exchange rate 553 453 0.65% 0.54% 154 110 -11.0% H1 18 H1 19 H1 18 H1 19 1,027 914 International Retail Banking Insu
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% 6.9% 6.8% 70 72 65 50 53 54 2014 2015 2016 2017 2018 June-18 June-19 Average 2014 2015 2016 2017 2018 H1 18 H1 19 2007- 2013 23 - H1 2019 Results- Attijariwafa bank
Slide 24: Customer Loans
4 Growth of customer loans and NPL ratio by business lines X% +/- 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% 291.6 317.6 +11.0% +4.8% +4.6% +8.9% Customer Loans 212.2 191.
Slide 25: Customer Loans: Focus on IRB
4 Growth of customer loans and NPL ratio by business lines: Focus on IRB* X% +/- International Retail North Africa(1) WAEMU(2) EMCCA(3) (MAD bn) Banking 68.0 71.1 +1.7% +11.6% -4.2% +4.6% Customer Loans 30.2 30.7 26.5 29.6 11.3 10.8 June-18 June-19 June-18 June-19 June-18 June-19 June-18 June-19 +5.
Slide 26: Exposures, staging & coverage
Exposures, staging & coverage In MAD billion, figures as of 30 June 2019 GROUP Exposure at default Coverage ratio Bucket 1 Bucket 2 Bucket 3 Total Bucket 1 Bucket 2 Bucket 3 Total Loans 288 507 27 695 23 002 339 204 0,8% 15,5% 65,8% 6,4% off balance loans 129 966 9 488 510 139 964 0,4% 3,2% 26,7% 0,
Slide 27: Growth of NIGS by business lines
6 Growth of NIGS by business lines X% +/- MAD million BMET Specialized Financial Companies +19.6% +7.0% +6.3% at a constant exchange rate 1,487 1,779 Net income group share 282 301 2,797 2,935 +4.9% H1 18 H1 19 H1 18 H1 19 International Retail Banking Insurance -10.4% at a H1 18 H1 19 -14.7% constan
Slide 28: Main contributors to net income group share in H1 2019
6 Main contributors to net income group share in H1 2019 in MAD million Growth rate at a Subsidiaries H1 2019 contributions Weight Growyh rate constant exchange rate Attijariwafa bank (Morocco) 1,768 60.2% 22.0% 22.0% CBAO (Senegal) 163 5.5% 16.5% 20.5% Attijari bank Tunisie (Tunisia) 159 5.4% -3.6%
Slide 29: RoA by business lines
RoA by business lines X% +/- BMET Specialized Financial Companies +0.14pt 2.19% -0.06pt 2.12% RoA 0.96% 1.10% -0.09 pt H1 18 H1 19 H1 18 H1 19 1.41% 1.32% International Retail Banking Insurance -0,62pt -0.63pt H1 18 H1 19 2.40% 1.78% 1.62% 1.00% H1 18 H1 19 H1 18 H1 19 29 - H1 2019 Results- Attijari
Slide 30: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2019 Regulatory ratios as of June 30, 2019 Attijariwafa bank share price performance 30 - H1 2019 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% 12.6% Minimum 12.3% requirements: 12% 9.9% 10.1% 10.1% 10.8% 9.7% 10.2% 10.0% Minimum requirements Tier 1 : 9% (CET1: 8% and AT1: 1%) Capital adequacy 2013 2014 2015 2016 2017 2018 H1 19F Capital Ade
Slide 32: Regulatory main recent evolutions
Regulatory main recent evolutions Regulatory / accounting main recent evolutions Recent capital evolutions - 2014: application of Basel 3: - Dec. 18: Capital increase of MAD • New Tier 1 eligible instrument: additional Tier 1 2.4bn (+80 bps on AWB’s CAR and +50 (perpetual with loss absorption mechan
Slide 33: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2019 Regulatory ratios as of June 30, 2019 Attijariwafa bank share price performance 33 - H1 2019 Results- Attijariwafa bank
Slide 34: Attijariwafa bank share price performance
Attijariwafa bank share price performance Attijariwafa bank vs MASI from 12-31-12 to 09-19-19 180 MASI ATTIJARIWAFA BANK Base 100 Dec 12 Share price as of 30 June 2019: 2016 MAD 466 155 2015 AWB :+22.2% 2014 MASI: +30.5% Share price as of September 19, AWB :-1.8% MASI: -7.2% 2019: MAD 479 2013 AWB :
Slide 35: Attijariwafa bank market indicators
Attijariwafa bank market indicators Attijariwafa bank 12/31/2017 12/31/2018 06/30/2019 09/19/2019 Share price 484 453 466 479 Year High 500 514 484 488 Year Low 396 416.5 423 423 P/B (*) 2.3x 2.2x 2.2x - P/E (*) 18.3x 16.7x 16.7x - DY 2.58% 2.87% - - Number of shares 203,527,226 209,859,679 209,859,
Slide 36: Back up
Back up 36 - H1 2019 Results- Attijariwafa bank
Slide 37: Growth of expenses by business lines
3 Growth of expenses by business lines X% +/- X% Cost-Income ratio MAD million BMET Specialized Financial Companies 48.6% 45.1% 43.6% 42.7% +6.6% at a +3.5% -1.4% constant Expenses exchange rate 46.4% 46.8% 2,704 2,798 5,246 5,506 549 541 +5.0% H1 18 H1 19 H1 18 H1 19 International Retail Banking In
Slide 38: Growth of NI by business lines
5 Growth of NI by business lines X% +/- MAD million BMET Specialized Financial Companies +19.4% +6.2% +3.0% at a constant Net income exchange rate 1,498 1,789 352 374 +1.1% H1 18 H1 19 H1 18 H1 19 3,446 3,482 International Retail Banking Insurance -7.9% at a -13.1% constant -33.9% H1 18 H1 19 exchan
Slide 39: Main contributors to loans in H1 2019
1 Main contributors to loans in H1 2019 in MAD million Growth Rate H1 2019 Subsidiaries Weight Growth Rate at a constant contributions exchange rate Attijariwafa bank (Morocco) 207,231 65.3% 11.3% 11.3% Attijari bank Tunisie (Tunisia) 20,389 6.4% -7.2% 1.2% Wafasalaf (Morocco) 15,462 4.9% 4.1% 4.1%
Slide 40: Main contributors to net banking income in H1 2019
Main contributors to net banking income in H1 2019 in MAD million Growth Rate H1 2019 Subsidiaries Weight Growth Rate at a constant Contributions exchange rate Attijariwafa bank (Morocco) 5,843 48.9% 13.4% 13.4% Attijari bank Tunisie (Tunisia) 748 6.3% -6.2% 10.3% CBAO (Senegal) 625 5.2% 5.6% 9.1% S
Slide 41: BMET: Cost of risk by business line
Cost of risk by business line between 2011 and H1 2019 xx% Contribution to gross customer loans (end of period) 71% 71% 70% 69% 66% 66% 64% 66% 66% 66% 1.15% 0.86% 0.76% 0.76% 0.67% BMET 0.54% 0.37% 0.38% 0.35% 0.40% 2011 2012 2013 2014 2015 2016 2017 2018 H1 18 H1 19 Cost of risk 18% 17% 19% 19% 22
Slide 42: INSURANCE: RoA by business line
RoA by business line between 2011 and H1 2019 xx% Contribution to total assets (end of period) 66% 68% 67% 66% 64% 62% 61% 62% 64% 62% 1.2% 1.1% BMET 0.9% 1.0% 1.0% 1.0% 1.0% 1.1% 1.0% 1.1% 2011 2012 2013 2014 2015 2016 2017 2018 H1 18 H1 19 19% 18% 20% 20% 22% 22% 24% 23% 22% 23% 2.4% 1.7% 1.6% 2.0
Slide 43: BMET: Net interest margin by business line
Net interest margin by business line between 2011 and H1 2019 72% 72% 71% 70% 66% 66% 65% 67% 66% 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% 3.7% 3.6% BMET 2011 2012 2013 2014 2015 2016 2017 2018 H1 18 H1 19 Net interest margin/ customer loans
Slide 44: BMET: Net fee income by business line
Net fee income by business line between 2011 and H1 2019 xx% Contribution to net banking income 54% 55% 54% 56% 54% 53% 50% 50% 48% 52% 19.1% 18.7% 18.2% 20.3% 21.0% 21.4% 20.7% 21.2% 16.2% 18.0% BMET 2011 2012 2013 2014 2015 2016 2017 2018 H1 18 H1 19 Net fee income/ Net banking income 24% 25% 26%
Slide 45: INSURANCE: Cost-Income ratio by business line
Cost-Income ratio by business line Between 2011 and H1 2019 xx% Contribution to net banking income 54% 55% 54% 56% 54% 53% 50% 50% 48% 52% 44.1% 43.1% 44.5% 42.0% 46.7% 47.4%47.1%47.6% 48.6% 45.1% BMET 2011 2012 2013 2014 2015 2016 2017 2018 H1 18 H1 19 24% 25% 26% 26% 28% 29% 33% 34% 34% 32% 61.3%