Attijariwafa Bank Sa · CSEMA:ATW
Attijariwafa Bank Sa — H1 2020 Earnings Presentation
47 slides from Attijariwafa Bank Sa's earnings presentation, June 2020
Slide 1: Attijariwafa bank Financial Communication June 2020
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 AWB's countries of presence
Overview of the measures taken by AWB’s countries of presence Morocco is among the African countries to have implemented a significant number of economic, fiscal, social and monetary measures to deal with the Covid-19 crisis WAEMU Measures implemented USA Euro zone UK Morocco Egypt Tunisia EMCCA zon
Slide 4: Morocco: main answers from public authorities to address Covid-19 challenges
Morocco: main answers from public authorities to address the challenges of Covid-19 Creation of a special Covid-19 crisis Implementation of Suspension of management fund the Economic Watch 2 cuts in key interest social security (MAD 35bn; 3% of GDP) Committee (CVE) rate (75 pbs) contributions until
Slide 5: 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 6: 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 7: 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 7
Slide 8: Macroeconomic environment in Morocco: Outlook and main indicators
Macroeconomic environment in Morocco Outlook and main indicators Average 2020 Initial 2020 BAM Main indicators 2019 2020 Sc1 2020 Sc2 2021F 2016-2018 Forecast Forecast GDP growth (%) 2.7% 2.6% 3.5% -6.4% -8.4% -6.3% 4.7% Non agricultural GDP (%) 3.0% 3.3% 3.0% -6.3% -8.3% -6.3% 3.7% Agricultural GDP
Slide 9: Sovereign bonds yield curve trend between 2019 and June 2020
Sovereign bonds yield curve trend between 2019 and June 2020 Sept 9, 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 2.69% 2.65% Sept 9, 2020 2.45% 2.40% 2.37% 2.27% 2
Slide 10: Exchange rates trend in 2020
Exchange rates trend in 2020 EUR/MAD USD/MAD 11.2 10.9 10.8 10.7 10.7 10.7 10.3 -8.7% 9.9 +10.6% 9.6 9.4 9.7 March 9th, 2020: Widening the 9.2 fluctuation band of the dirham from +/- 2.5% to +/- 5.0% compared to a Central rate set by BAM 01/01/2020 02/01/2020 03/01/2020 04/01/2020 05/01/2020 06/01/2
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 2020F 2021F Egypt 5.6% 2.0% 2.8% Tunisia 1.0% -6.0% 2.5% Ivory coast 6.9% 2.0% 6.5% Senegal 5.3% 1.2% 4.0% Cameroon 3.7% -1.2% 4.5% IMF, BAD, BEAC 11 Attijariwafa bank presentation – H1
Slide 12: Monetary policy in AWB's main countries of presence
Monetary policy in AWB’s main countries 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) Tunisia 100 bps cut of key interest rate to 6.80% in March 2020 300 bps cut of key in
Slide 13: Moroccan banking sector YoY growth
Moroccan banking sector YoY growth X% YoY growth CAGR X% +/- Deposits (MAD billion) Deposits: YoY growth CAGR 13-17 +6% CAGR 17-19 +3% +6% +3% +3% +4% 6.8% 6.4% 5.9% 4.4% 899 925 950 933 969 718 2.7% 2.9% 3.9% Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 June-20 2013 2017 2018 2019 June-19 June-20 Loan
Slide 14: Moroccan banking sector YoY growth
Moroccan banking sector YoY growth 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% - 6.7% 4.9% 4.9% 4.4% 253 263 271 268 268 3.8% 207 3.2% 0% 2013 2017 2018 2019 June-19 June-20 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 June
Slide 15: 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 15
Slide 16: Key measures taken by AWB to support its customers
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 17: Acceleration of digital penetration
Acceleration of digital penetration Digitalization is reshaping the business model ~42% of retail clients are active and regular users More than 12 millions connections in 2020 (+60% compared to the previous year) ~8 millions digital transactions processed in the first half of 2020 (+66% compared to
Slide 18: H1 2020 consolidated P&L
H1 2020 consolidated P&L Growth Rate at a constant exchange (in MAD million) H1 2019 H1 2020 Growth Rate rate and a constant scope* Net banking income 11,777 12,383 5.1% 4.0% 1 Net interest income 7,254 7,876 8.6% 7.5% 2 Net fee income 2,459 2,227 -9.4% -10.0% Income from market activities 2,083 1,8
Slide 19: H1 2020 key financial indicators
H1 2020 key financial indicators H1 2019 H1 2020 Net interest margin (bps)* 457 477 Non-interest income** (bps) 171 162 Cost income ratio 46.8% 44.1%*** NPL ratio 6.8% 7.5% Cost of risk 0.54% 1.70% RoA 1.32% 0.85% *** RoE 14.6% 8.8%*** Leverage 10.3x 10.2x (*) Net interest income (annualized) / Cust
Slide 20: NBI by business line
NBI by business line X% +/- x% TCAM 17-19 MAD billion BMET Specialized Financial Companies -0.1% +5.3% -0.3% +2.3% +4.0% at a constant exchange rate and a 6.2 6.2 NBI constant scope 1.3 1.3 +5.1% +4.1% 11.8 12.4 H1 19 H1 20 H1 19 H1 20 International Retail Banking Insurance +2.0% at a H1 19 H1 20 co
Slide 21: Net Interest Income by business line
Net Interest Income by business line X% +/- x% TCAM 17-19 MAD billion BMET Specialized Financial Companies +5.1 +6.0% +4.4% +5.2% 3.9 4.1 Net interest income 0.6 0.6 +8.6% +7.6% 7.3 7.9 H1 19 H1 20 H1 19 H1 20 International Retail Banking Insurance +12.3% +6.7% +9.5% +27.8% H1 19 H1 20 2.5 2.8 0.4 0
Slide 22: Net interest margin by business line
Net interest margin by business line between 2011 and H1 2020 xx% Contribution to net customer loans (end of period) 72% 72% 71% 70% 66% 66% 65% 67% 67% 67% 66% 3.8% 3.6% 3.7% 3.7% 4.0% 3.8% 3.8% 3.6% 3.6% 3.6% 3.8% BMET 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1 19 H1 20 Net interest margin/ c
Slide 23: Loans by business line
Loans by business line X% +/- x% TCAM 17-19 MAD billion BMET Specialized Financial Companies +2.1% +8.0% +8.6% +2.5% 212 217 Loans 31 33 +4.0% +6.4% June-19 June-20 June-19 June-20 318 330 3.6% 3.8% 3.8% 3.7% International Retail Banking Insurance June-19 June-20 +7.0% +4.2% +13.0% +0.6% 4.6% 4.8% 7
Slide 24: Fees by business line
Fees by business line X% +/- x% TCAM 17-19 MAD billion BMET Specialized Financial Companies -6,6% +12.5% -7.9% +1.6% Net fee income 1.32 1.23 -9.4% +3.7% 0.48 0.45 2.46 2.23 H1 19 H1 20 H1 19 H1 20 International Retail Banking -7.3% +2.6% H1 19 H1 20 1.04 0.96 H1 19 H1 20 24 Attijariwafa bank presen
Slide 25: Fee income: main drivers, acquisition and equipment of retail customers
Fee income: main drivers Acquisition and equipement of retail customers Customer acquisition (92) 100 101 126 75 75 64 99 87 74 2019 monthly Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 production rebased on 100% Customer equipement (90) 100 111 105 67 42 44 84 80 60 2019 monthly Jan-20 F
Slide 26: Fee income: main drivers, loans distribution
Fee income: main drivers Loans distribution Consumer loans 100 103 90 80 28 16 53 72 56 2019 monthly Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 production rebased on 100% Mortgage loans 100 102 102 49 6 53 93 111 131 2019 monthly Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 p
Slide 27: Income from market activities by business line
Income from market activities by business line X% +/- MAD billion BMET Specialized Financial Companies -9.9% NA Income from Market 1.54 1.39 activities -12.0% 2.08 1.83 0.002 0.011 H1 19 H1 20 H1 19 H1 20 International Retail Banking Insurance -11.6% -26.5% H1 19 H1 20 0.28 0.25 0.29 0.21 H1 19 H1 2
Slide 28: Expenses by business line
X% +/- Expenses by business line X% Cost-Income ratio MAD million BMET Specialized Financial Companies -2.0% at a constant -3.4% +2.9% exchange rate and a Expenses constant scope* 2,704 2,798 ** 5,506 5,522** 541 556 +0.3% H1 19 H1 20 H1 19 H1 20 (*) (*) 45.1% 43.7% 42.7% 39.7% International Retail
Slide 29: IFRS 9 Provisioning methodology
IFRS 9 Provisioning methodology Description Probability of Default 12 months ECL Stage 1 – Performing (expected credit losses) = Loans ECL = EAD X PD 1year X LGD Probability of Default “Point in Time” + Stage 2 – Performing Lifetime ECL (expected loans but with significant credit losses) F
Slide 30: 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) 66% 10% 23% 100% +2.1% +8.6% +7.0% 317.6 +4.0% 330.2 Customer Loans 212.2
Slide 31: Customer Loans: Focus on IRB
Growth of customer loans and NPL ratio by X% business line: Focus on IRB* +/- + + = International Retail North Africa(1) WAEMU(2) EMCCA(3) (MAD bn) Banking 71.1 76.0 +16.2% +2.9% -7.9% +7.0% Customer Loans 30.7 35.6 29.6 30.4 10.8 10.0 H1 19 H1 20 H1 19 H1 20 H1 19 H1 20 H1 19 H1 20 -0.6pt -1.1pt +3
Slide 32: 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 NA -25.9% NA +18.8% 1,392 Cost of Risk 766 453 NA -14.4% 110 3,021 H1 19 H1 20 H1 19 H1 20 0.40% 1.21% 0.67% 4.21% 914 International Retail Banking Insurance NA -8.6% NA +15.
Slide 33: NPLs and cost of risk
4 IFRS consolidated financial statements NPLs and cost of risk NPL ratio Cost of risk (in bps) 170 7.5% 6.8% 7.1% 7.0% 7.0% 6.8% 6.6% 6.8% 113 83 70 72 50 53 46 54 2014 2015 2016 2017 2018 2019 H1 19 H1 20 Average 2014 2015 2016 2017 2018 2019 H1 19 H1 20 2007-2013 33 Attijariwafa bank presentation
Slide 34: NIGS by business line
NIGS by business line X% +/- -32.6% at a constant exchange rate and a x% TCAM 17-19 constant scope and MAD million excluding covid19 BMET Specialized Financial Companies contribution -33.7% at a constant exchange rate and a -68.0% +7.9% -93.0% -0.3% constant scope and excluding covid19 contribution
Slide 35: Solid liquidity position
Solid liquidity position Liquid and free assets (HQLA) in MAD billion Bank in Morocco 55 43 43 35 Dec 31, 2018 Dec 31, 2019 March, 2020 June, 2020 104% 127% 115% 207% Consolidated basis 93 70 72 71 Dec 31, 2018 Dec 31, 2019 March, 2020 June, 2020 133% 151% 147% 211% XX% Liquidity Coverage Ratio (LCR
Slide 36: Solid capital position
Solid capital position Capital Adequacy ratio Tier 1 CAR Consolidated basis 12.6% 13.3% 13.0% 13.1% 13.6% Minimum 12.5% 12.3% requirements*: 12% 10.1% 10.1% 10.8% 10.2% 10.3% 10.9% (11.5% during the 9.7% crisis ) Minimum requirements* Capital adequacy Tier 1 : 9% (8.5% during the crisis) 2014 2015 2
Slide 37: A solid, resilient and diversified business model: main indicators
A solid, resilient and diversified business model Main indicators Net banking income +5.1% Satisfactory growth of the top line and resilient margins NIM (%)* +20 bps Strong operating performance & General Operating Expenses -2.0%** improvement of cost efficiency Gross Operating Income +9.2%** Co
Slide 38: Back up
Back up 38 Attijariwafa bank presentation – June 2020
Slide 39: Key measures taken by the Moroccan government and Central Bank: Executive Summary
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 40: Cost of risk by business line between 2011 and H1 2020
Cost of risk by business line between 2011 and H1 2020 xx% Contribution to gross customer loans (end of period) 71% 71% 70% 69% 66% 66% 64% 66% 66% 66% 65% 1.15% 1.21% BMET 0.86% 0.76%0.76%0.67% 0.37%0.38% 0.35%0.31%0.40% 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1 19 H1 20 Cost of risk 18% 17%
Slide 41: RoA by business line between 2011 and H1 2020
RoA by business line between 2011 and H1 2020 xx% Contribution to total assets (end of period) 66% 68% 67% 66% 64% 62% 61% 62% 61% 62% 61% 1.2% 1.1% (*) 0.9% 1.0% 1.0% 1.0% 1.0% 1.1% 1.1% 1.1% 0.7% BMET 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1 19 H1 20 19% 18% 20% 20% 22% 22% 24% 23% 24% 23%
Slide 42: Net interest margin by business line between 2011 and H1 2020
Net interest margin by business line between 2011 and H1 2020 xx% Contribution to total assets (end of period) 66% 68% 67% 66% 64% 62% 61% 62% 61% 62% 61% 2.7% 2.6% 2.5% 2.5% 2.6% 2.6% 2.4% 2.3% 2.4% 2.4% 2.4% BMET 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1 19 H1 20 Net interest margin/ Total a
Slide 43: Net fee income by business line between 2011 and H1 2020
Net fee income by business line between 2011 and H1 2020 xx% Contribution to net banking income 54% 55% 54% 56% 54% 53% 50% 50% 51% 52% 49% 23.9% 19.1%18.7%18.2% 18.0%20.3%21.0%21.4% 21.2%19.9% 16.2% BMET 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1 19 H1 20 Net fee income/ Net banking income 24%
Slide 44: Cost-Income ratio by business line between 2011 and H1 2020
Cost-Income ratio by business line between 2011 and H1 2020 xx% Contribution to net banking income 54% 55% 54% 56% 54% 53% 50% 50% 51% 52% 49% 44.1% 43.1% 44.5% 42.0% 46.7% 47.4% 47.1% 47.6% 47.8% 45.1% 43.7%(*) BMET 2011 2012 2013 2014 2015 2016 2017 2018 2019 H1 19 H1 20 24% 25% 26% 26% 28% 29% 33
Slide 45: RoA by business line
RoA by business line BMET International Retail Banking 1.97% 1.92% 1.78% (*) (*) 1.38% 1.08% 1.06% 1.10% 0.72% RoA 2018 2019 H1 2019 H1 2020 2018 2019 H1 2019 H1 2020 1.32% 1.31% 1.32% (*) 0.83% Specialized Financial Companies Insurance 2018 2019 H1 2019 H1 2020 1.96% 2.07% 2.12% (*) 1,00% 1.06% 0.7
Slide 46: 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 47: Moroccan banking sector liquidity: exogenous factors
Moroccan banking sector liquidity: exogenous factors Foreign reserves in USD bn Cash in MAD bn IMF liquidity line 34.3 31.9 3 3 312.2 26.4 28.9 31,3 250.2 253.4 25.1 25.0 Dec-19 Feb-20 Mar-20 Apr-20 Jul-20 Dec-19 Feb-20 Jul-20 Improvement of foreign reserves (even Significant increase of cash du