Attijariwafa Bank Sa · CSEMA:ATW
Attijariwafa Bank Sa — FY2020 Earnings Presentation
54 slides from Attijariwafa Bank Sa's earnings presentation, December 2020
Slide 1: Attijariwafa bank Financial Communication December 2020
Attijariwafa bank December 2020 Financial Communication 2020
Slide 2: Agenda
Agenda Overview of macroeconomic environment in AWB’s countries of presence (2020 and 2021) Continued support of customers and communities through Covid-19 crisis 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
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 (MAD 35bn; 3% of GDP) social security Committee (CVE) rate (75 pbs) contributions until
Slide 5: Macroeconomic environment in Morocco Outlook and main indicators
Macroeconomic environment in Morocco Outlook and main indicators Average 2016- 2020 Initial 2020 BAM Main indicators 2019 2020 2021F 2018 Forecast Forecast GDP growth (%) 2.7% 2.6% 3.5% -7.1% -6.6% 3.8% Non agricultural GDP (%) 3.0% 3.3% 3.0% -6.9% -6.6% 3.0% Agricultural GDP (%) 1.1% -4.3% 6.4% -8.
Slide 6: Positive trend of Covid-19 new cases and vaccination pace
Positive trend of Covid-19 new cases and vaccination pace Number of cases Evolution of the vaccination compain 3.5m (15%) of New Covid-19 daily cases (7j moving average) Number of people vaccinated adult population 6 000 4 000 000 5,199 after 1 month 3 500 000 5 000 3 000 000 4 000 2 500 000 3 000 2
Slide 7: Sovereign bonds yield curve trend between Dec 2019 and Dec 2020
Sovereign bonds yield curve trend between Dec 2019 and Dec 2020 Dec - 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% 2.69% Dec - 2020 2.40% 2.38% 2.37% 2.27% 2.
Slide 8: 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% 5.62% 3.92% 3.00% 2.75% -3.24pts -1.75pt 2.50% -2.31pts 2.25% 3.54% 2.25% 3.29% 2.64% 3.38% 3.44% 2.39% 2.46% 2.62% 2.00% 3.19% 2.38% 2.29% 2.69% 2.38% 1.50% 1.61% 2013 2014 2015 2016 2017 20
Slide 9: Exchange rates trend in 2020
Exchange rates trend in 2020 EUR/MAD USD/MAD 11.2 10.9 10.8 10.7 10.8 10.7 10.7 10.3 9.9 9.6 +15.8% -8.7% 9.4 9.7 March 9th, 2020: Widening the 9.2 fluctuation band of the dirham from +/- 2.5% to +/- 5.0% 8.9 compared to a Central rate set by BAM 01/01/2020 02/20/2020 04/10/2020 05/30/2020 07/19/202
Slide 10: 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% 3.5% 2.8% Tunisia 1.0% -7.0% 4.0% Ivory coast 6.5% 1.8% 6.2% Senegal 5.3% -0.7% 5.2% Cameroon 3.9% -2.8% 3.4% IMF, BAD, BEAC 10 Attijariwafa bank presentation – FY
Slide 11: 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) 150 bps cut of key interest rate to 6.25% ( 100 bps in March and 50 bps in Tunisia Octo
Slide 12: 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% +5% +6% +3% +3% +5% 6.8% 6.4% 5.9% 1 000 4.4% 899 925 950 5.3% 718 2.7% 2.9% Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 2013 2017 2018 2019 2020 Loans (MAD bil
Slide 13: 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% +0.2%% +5% +4% +3% +0.2% 6.7% 4.9% 4.9% 4.4% 253 263 271 272 3.8% 207 3.2% 0.2% 2013 2017 2018 2019 2020 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20
Slide 14: 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 15: Agenda
Agenda Overview of macroeconomic environment in AWB’s countries of presence (2020 and 2021) Continued support of customers and communities through Covid-19 crisis Liquidity, Capital Adequacy Ratio and Financial Performance Back up 15
Slide 16: Business continuity and operational resilience
Business continuity and operational resilience 5,548 branches, 100% of the distribution network, remained open ~100% of services maintained in all geographies Up to ~70% of employees of various headquarters working remotely ~30 k PCR test administrated 16 Attijariwafa bank presentation – FY 2020 Res
Slide 17: Continued support for customers and communities
Continued support for customers and communities Financing of 68,700 VSMEs through disbursement of MAD 40 bn new loans in Morocco 30-35% market share for Damane loans (with government guarantee) Financing of 6,500 young entrepreneurs 215,000 customers benefiting from loan moratoria at no additional c
Slide 18: Loan moratoria as of 30 June 2020
Loan moratoria as of 30 June 2020 # cases Deferred outstanding loans Thousands of customers MAD billion Attijariwafa bank 42 14 Wafasalaf 68 5 Wafabail 3 6 Total Morocco 113 25 IRB 102 10 20% of investment, mortgage and Total Group 215,000 customers MAD 35 billion consumer loans (on a consolidated b
Slide 19: Leveraging on best-in-class digital assets
…leveraging on best-in-class digital assets Preserving business continuity as well as the safety of employees and customers is possible thanks to the digital transformation of recent years 33% 39% 27% ~39% of active digital customers 2018 2019 2020 6 +50% 8 +59% 13 More than 13 millions connecti
Slide 20: 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 20
Slide 21: FY 2020 consolidated P&L
FY 2020 consolidated P&L Growth Rate at a (in MAD million) FY 2019 FY 2020 Growth Rate constant exchange rate Net banking income 23,473 23,858 1.6% 1.1% Net interest income 14,937 15,785 5.7% 5.1% Net fee income 5,148 4,771 -7.3% -7.8% Income from market activities 3,709 3,031 -18.3% -18.5% Others -
Slide 22: FY 2020 key financial indicators
FY 2020 key financial indicators FY 2019 FY 2020 Net interest margin* (bps) 461 473 Non-interest income** (bps) 160 142 Cost income ratio 47.8% 46.5%*** NPL ratio 6.6% 7.8% Cost of risk 0.46% 1.51% RoA 1.31% 0.78%*** RoE 14.8% 8.9%*** Leverage 9.9x 10.5x (*) Net interest income / Customer loans (**)
Slide 23: Growth of NBI by business line
Growth of NBI by business line X% +/- x% CAGR 17-19 MAD billion BMET Specialized Financial Subsidiaries +5.0%* -2.3% +3.7%* -0.9% 12.2 11.9 NBI 2.6 2.6 +4.1% +1.6% 23.5 23.9 2019* 2020 2019* 2020 International Retail Banking Insurance +5.0% +1.9% -10.7% +46.1% 2019 2020 7.9 8.1 1.1 1.7 2019 2020 201
Slide 24: Net Interest Income by business line
Net Interest Income by business line X% +/- x% CAGR 17-19 MAD billion BMET Specialized Financial Subsidiaries +6.0% +5.3% +5.2% +4.7% 7.8 8.2 Net interest income 1.2 1.3 +7.6% +5.7% 14.9 15.8 2019 2020 2019 2020 3.7% 3.7% 3.4% 3.7% International Retail Banking Insurance +6.7% +7.6% +27.8% +5.6% 2019
Slide 25: Net interest margin by business line between 2011 and FY2020
Net interest margin by business line between 2011 and FY2020 xx% Contribution to net customer loans (end of period) 72% 72% 71% 70% 66% 66% 65% 67% 67% 66% 3.8% 3.6% 3.7% 3.7% 4.0% 3.8% 3.8% 3.6% 3.7% 3.7% BMET 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020 Net interest margin/ customer loans (e
Slide 26: Loans by business line
Loans by business line X% +/- x% CAGR 17-19 MAD billion BMET Specialized Financial Subsidiaries +7.1%* +3.8% +8.2%* -5.1% 212 220 Loans 35 33 +6.4% +3.1% 2019* 2020 2019* 2020 324 334 3.7% 3.7% 3.4% 3.7% International Retail Banking Insurance 2019 2020 +4.0% +4.7% +0.6% +8.8% 4.6% 4.7% 74 77 3 3 201
Slide 27: Fees by business line
Fees by business line X% +/- x% CAGR 17-19 MAD billion BMET Specialized Financial Subsidiaries +12.4%* -7.5% +1.7%* -9.3% Net fee income 2.93 2.71 +3.7% -7.3% 0.99 0.89 5.15 4.77 2019* 2020 2019* 2020 International Retail Banking +2.6% -4.0% 2019 2020 2.17 2.08 2019 2020 (*) BMET and SFS proforma: R
Slide 28: Fee income: main drivers – The bank in Morocco
Fee income: main drivers – The bank in Morocco Acquisition and equipment of retail customers Customer Average: 95 acquisition 84 77 100 101 126 75 75 64 99 87 74 89 89 91 107 2019 monthly Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 customer acqui
Slide 29: Fee income: main drivers – Loans distribution
Fee income: main drivers – The bank in Morocco Loans distribution Average: 102 Consumer* loans 89 86 100 103 90 80 28 16 53 72 56 114 83 109 2019 monthly Jan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 Jul-20 Aug-20 Sept-20 Oct-20 Nov-20 Dec-20 Jan.21 loans volume rebased on 100 Average: 122 Mortgage loan
Slide 30: Income from market activities by business line
Income from market activities by business line X% +/- MAD billion BMET Specialized Financial Subsidiaries -18.7% +67.7% Income from Market 2.74 2.23 activities -18.3% 3.71 0.008 0.013 3.03 2019 2020 2019 2020 International Retail Banking Insurance -22.5% -9.2% 2019 2020 0.55 0.42 0.47 0.43 2019 2020
Slide 31: Expenses by business line
Expenses by business line X% +/- X% Cost-Income ratio MAD million BMET Specialized Financial Subsidiaries -5.0% +0.1% -1.8% at a constant 5,712 5,426** Expenses exchange rate* 11,223 11,084** 1 191 1 192 -1.2% 2019 * 2020 2019* 2020 ** 46.8% 45.5% 46.1% 46.5% ** International Retail Banking Insuranc
Slide 32: 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 33: Customer Loans
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) Subsidiaries Banking (MAD bn) 66% 10% 23% 100% +3.8% -5.1% +4.7% 323.8 +3.1% 333.7 Customer Loans 211.9
Slide 34: 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 73.8 77.2 +7.7% +6.7% -9.5% +4.7% Customer Loans 32.7 35.2 29.9 31.9 11.2 10.1 2019 2020 2019 2020 2019 2020 2019 2020 -0.2pt -0.6pt +3.5pts +0.
Slide 35: Exposures, staging & coverage
Exposures, staging & coverage In MAD million, figures as of 31 Dec. 2020 GROUP Exposure at default Coverage ratio Bucket 1 Bucket 2 Bucket 3 Total Bucket 1 Bucket 2 Bucket 3 Total Loans 298 680 33 404 28 066 360 150 0,7% 14,3% 69,4% 7,3% off balance loans 138 859 14 568 558 153 985 0,4% 1,5% 35,2% 0
Slide 36: Evolution of Cost of Risk by business line
X% +/- Evolution of Cost of Risk by business line X% CoR (%) x% CAGR 17-19 MAD million BMET Specialized Financial Subsidiaries -26.1% NA +19.4% NA 2,571 Cost of Risk 706 1,103 -14.4% NA 265 5,454 2019 2020 2019 2020 0.32% 1.10% 0.71% 3.00% 1,589 International Retail Banking Insurance -8.7% NA +15.9%
Slide 37: 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) 151 7.8% 113 6.8% 7.1% 7.0% 7.0% 6.8% 6.6% 83 70 72 50 53 46 2014 2015 2016 2017 2018 2019 2020 Average 2014 2015 2016 2017 2018 2019 2020 2007-2013 37 Attijariwafa bank presentation – FY 2020 Results
Slide 38: NIGS by business line
NIGS by business line X% +/- -39.1% at a constant exchange rate and x% CAGR 17-19 excluding covid19 MAD million contribution BMET Specialized Financial Subsidiaries -36.7% at a constant +9.3%* -57.1% -8.3%* -66.8% exchange rate and excluding covid19 3,495 contribution Net income group share 1,499 49
Slide 39: Solid liquidity position
Solid liquidity position Liquid and free assets (HQLA) in MAD billion Bank in Morocco 57 43 43 35 Dec 31, 2018 Dec 31, 2019 March, 2020 Dec, 2020 104% 127% 115% 202% Consolidated basis 95 70 72 71 Dec 31, 2018 Dec 31, 2019 March, 2020 Dec, 2020 133% 151% 147% 198% XX% Liquidity Coverage Ratio (LCR)
Slide 40: Solid capital position
Solid capital position Capital Adequacy ratio Tier 1 CAR Consolidated basis 13.3% 13.1% 13.4% Minimum 12.6% 12.5% 12.3% 13.0% requirements*: 12% 10.1% 10.1% 10.8% 10.2% 10.3% 10.8% (11.5% during the 9.7% crisis ) Minimum requirements* Capital adequacy Tier 1 : 9% (8.5% during the crisis) 2014 2015 2
Slide 41: A solid, resilient and diversified business model Main indicators
A solid, resilient and diversified business model Main indicators Net banking income +1.6% Satisfactory growth of the top line and resilient margins NIM (%)* +12 bps Strong operating performance & General Operating Expenses -1.2%** improvement of cost efficiency Gross Operating Income +4.3%** Co
Slide 42: Back up
Back up 42 Attijariwafa bank presentation – FY 2020 Results
Slide 43: Cost of risk by business line between 2011 and FY 2020
Cost of risk by business line between 2011 and FY 2020 xx% Contribution to gross customer loans (end of period) 71% 71% 70% 69% 66% 66% 64% 66% 65% 65% 1.15% 1.10% BMET 0.86% 0.76% 0.76% 0.67% 0.37% 0.38% 0.35% 0.32% 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Cost of risk 18% 17% 19% 19% 22%
Slide 44: RoA by business line between 2011 and FY2020
RoA by business line between 2011 and FY2020 xx% Contribution to total assets (end of period) 66% 68% 67% 66% 64% 62% 61% 62% 60% 61% 1.2% 1.1% 0.9% 1.0% 1.0% 1.0% 1.0% 1.1% 1.1% BMET 0.6%** 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020 19% 18% 20% 20% 22% 22% 24% 23% 24% 24% 1.7% 1.6% 2.0% 1.7
Slide 45: Net interest margin by business line between 2011 and FY2020
Net interest margin by business line between 2011 and FY2020 xx% Contribution to total assets (end of period) 66% 68% 67% 66% 64% 62% 61% 62% 60% 61% 2.7% 2.6% 2.5% 2.5% 2.6% 2.6% 2.4% 2.3% 2.4% 2.4% BMET 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020 Net interest margin/ Total assets (end of pe
Slide 46: Net fee income by business line between 2011 and FY2020
Net fee income by business line between 2011 and FY2020 xx% Contribution to net banking income 54% 55% 54% 56% 54% 53% 50% 50% 51% 49% 24.0% 22.8% 19.1% 18.7% 18.2% 20.3% 21.0% 21.4% 16.2% 18.0% BMET 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020 Net fee income/ Net banking income 24% 25% 26% 26
Slide 47: Cost-Income ratio by business line between 2011 and FY 2020
Cost-Income ratio by business line between 2011 and FY 2020 xx% Contribution to net banking income 54% 55% 54% 56% 54% 53% 50% 50% 51% 49% 44.1% 43.1% 44.5% 42.0% 46.7% 47.4% 47.1% 47.6% 47.8% 43.7% ** BMET 2011 2012 2013 2014 2015 2016 2017 2018 2019* 2020 24% 25% 26% 26% 28% 29% 33% 34% 33% 33% 61
Slide 48: 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 49: 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 50: Prevention and business continuity plan
Prevention and business continuity plan The Group has implemented a series of measures for its COVID-19 prevention plan to ensure business continuity, to reduce the risk of spreading, and to control the risks and impact on its P&L and balance sheet Up to 70% of Health safety Implementation of a ri
Slide 51: Prevention and business continuity plan
Prevention and business continuity plan The Group has implemented a series of measures for its COVID-19 prevention plan to ensure business continuity, to reduce the risk of spreading, and to control the risks and impact on its P&L and balance sheet Financial A liquidity crisis management unit was
Slide 52: Supporting and helping our customers and communities
Supporting and helping our customers and communities in all countries of operations Attijariwafa bank has introduced a series of measures to help customers and “communities” in various segments and geographic areas of operations to meet the COVID 19 challenges and its unprecedented socioeconomic eff
Slide 53: Moroccan banking sector liquidity: exogenous factors
Moroccan banking sector liquidity: exogenous factors Foreign reserves in USD bn Cash in MAD bn IMF liquidity line 39.0 31.9 3 3 36.0 320.8 26.4 28.9 250.2 253.4 25.1 25.0 Dec-19 Feb-20 Mar-20 Apr-20 Dec-20 Dec-19 Feb-20 Dec-20 Improvement of foreign reserves (even Significant increase of cash du
Slide 54: Key measures taken by Bank Al Maghrib (BAM) policy 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