Attijariwafa Bank Sa · CSEMA:ATW
Attijariwafa Bank Sa — H1 2017 Earnings Presentation
45 slides from Attijariwafa Bank Sa's earnings presentation, Jun 30, 2017
Slide 1: Attijariwafa bank Financial Communication 2017
Attijariwafa bank As of 30 June 2017 Financial Communication 2017
Slide 2: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2017 Regulatory ratios as of June 30, 2017 Attijariwafa bank share price performance 2
Slide 3: Macroeconomic environment in Africa in 2017
Macroeconomic environment in Africa in 2017 Real GDP growth in Africa Real GDP growth in North and Sub-Saharan Africa (%) 2015 2016 2017F North Africa 9.6 WAEMU1 Africa 3.4% 2.2% 3.4% EMCCA 2 North Africa 3.3% 3.0% 3.4% West Africa 3.3% 0.4% 3.5% 6.3 6.3 6.2 6.1 6.1 6.1 WAEMU1 6.2% 6.1% 6.1% 4.4 6.0
Slide 4: Macroeconomic environment in Morocco in 2016
Macroeconomic environment in Morocco in 2016 Main economic indicators Economic growth 2015 2016 2017F Pick up in economic growth from 1.2% in 2016 to 4.4% in 2017F thanks to the improvement of cereal harvest (102 Real GDP growth 4.5% 1.2% 4.4% million quintals vs 34 million of quintals in 2016) Agri
Slide 5: Focus on government bond yields between 2012 and June 2017
Focus on government bond yields between 2012 and June 2017 Monetary policy Successive cuts in key interest rate : in 2012 (-25 bps), in 2014 (-25 bps in September and -25 bps in December) and in 2016 (-25 bps in March) to 2.25% Increase of mandatory reserve requirements from 2% to 4% of deposits (Ju
Slide 6: Moroccan financial market in 2017
Moroccan financial market in 2017 Financial market trends in 1H2017 2015 2016 June 2017 Stock exchange market’s trend in 1H2017: MASI -7.2% 30.5% 3.2% MADEX -7.5% 31.6% 3.0% - 3.2% Ytd increase of MASI as of 30 June 2017 Trading volume (MAD bn) 52.1 72.7 29.1 Market Cap. (MAD bn) 453.3 583.4 605.4 -
Slide 7: Macroeconomic environment in Africa in 2017
Macroeconomic environment in Africa in 2017 2017F figures North Africa Morocco Tunisia Mauritania Egypt Senegal Burkina-Faso GDP growth : 4.4% GDP growth : 2.5% GDP growth : 3.8% GDP growth : 3.5% GDP growth : 6.8% GDP growth : 6.1% West Africa GDP/cap (USD) : 3,253 GDP/cap (USD) : 3,675 GDP/cap (US
Slide 8: Macroeconomic environment in 2017 Tunisia, Senegal and Ivory Coast
Macroeconomic environment in 2017 Tunisia, Senegal and Ivory Coast Tunisia: main economic indicators 2015 2016 2017F GDP growth recovery to 2.5% in 2017F and 3.1% in 2018F Real GDP growth 1.1% 1.0% 2.5% 3.9% inflation rate in 2017F Inflation rate 4.9% 3.7% 3.9% Budget deficit (% of GDP) -4.4% -4.5%
Slide 9: Macroeconomic environment in 2017 Egypt
Macroeconomic environment in 2017 Egypt A large and A population of 96 million inhabitants, young and urbanized diversified A GDP of 330 USD billion (>3x Morocco) economy A very diversified economy … Structural Structural economic reforms carried out by the Egyptian authorities in a very short time
Slide 10: Moroccan banking sector
AWB market Moroccan banking sector shares in Morocco Focus on loans and deposits growth between 2009 and June 2017 YoY growth X% CAGR X% +/- Deposits (MAD billion) Deposits: YoY growth +5% +4% +4% 25.95% 26.53% 25.47% 26.66% 26.29% 26.18% 26.01% 26.20% 25.95% 26.72% 769 802 782 814 587 6.2% 6.5% 6.5
Slide 11: Moroccan banking sector
AWB market Moroccan banking sector shares in Morocco Focus on loans growth between 2009 and June 2017 YoY growth X% CAGR X% +/- Retail loans (1) (MAD billion) Retail loans: YoY growth +8% +5% +4% 240 236 246 229 146 24.25% 24.68% 24.23% 24.03% 23.42% 23.31% 23.02% 23.31% 23.48% 23.88% 9.7% 7.2% 5.0%
Slide 12: Focus on NPL ratio in Morocco
Focus on NPL ratio in Morocco NPL ratio (Moroccan banking sector) P1 P2 P3 19.62% 8.61% 7.56% 7.79% 7,58% 6.33% 6.92% 6.00% 6.03% 5.04% 4.94% 4.99% 2004 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 1H2017 P1 Significant improvement of the Moroccan Banking Sector NPL ratio between 2004 and 2011
Slide 13: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2017 Regulatory ratios as of June 30, 2017 Attijariwafa bank share price performance 13
Slide 14: Attijariwafa bank Group key figures in June 2017
Attijariwafa bank Group key figures in June 2017 Total assets: MAD 467 bn NBI: MAD 10.5 bn 19,430 employees +12.2% +4.1% Total savings*: MAD 423 bn Operating income: MAD 4.8 bn 4,090 branches +7.4% +8.7% Total loans: MAD 282 bn Net consolidated MAD 3.3 bn Number of covered countries income: +6.7% +1
Slide 15: Main changes in consolidation scope
Main changes in consolidation scope X% Growth Net income group share (in MAD million) +7.6% 111 - 156 +5.4% - 11 2,495 2,686 2,630 6 months impact (completion of the transaction in December 2016) NIGS H1-2016 NIGS H1-2017 at a Consolidation of reduction of % of Other scope effects Reported NIGS cons
Slide 16: IFRS consolidated financial statements in June 2017
IFRS consolidated financial statements in June 2017 Net banking income (in MAD billion) June 2017 Weight Increase of consolidated NBI by 4.1% driven by NBI 10.5 100.0% 4.1% International Retail Banking’s NBI (+12.9%), Wafa 1 Net interest income 6.2 58.9% 7.3% Assurance (+8.8%) and Specialized Financ
Slide 17: Growth of NBI by business lines
Growth of NBI by business lines X% +/- MAD billion BMET Specialized Financial Companies -1.8% +3.1% 5.5 5.4 NBI 1.1 1.2 +4.1% June-2016 June-2017 June-2016 June-2017 10.1 10.5 International Retail Banking Insurance +9.1% at a +12.9% constant +8.8% June-2016 June-2017 exchange rate and scope 2.9 3.3
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 +0.8% +0.2% +4.5% at a constant exchange rate 3.4 3.5 Net interest income and scope 0.5 0.5 +7.3% June-2016 June-2017 June-2016 June-2017 +4.0% +4.7% 5.8 6.2 +6.8% NA International Retail Bankin
Slide 19: Main contributors to loans in June 2017
1 Main contributors to loans in June 2017 in MAD million Subsidiaries 1H2017 contributions Weight Growth Rate Attijariwafa bank (Morocco) 177,734 63.1% 3.2%* +13.6% at a Attijari bank Tunisie (Tunisia) 20,775 7.4% 1.7% constant exchange rate Wafasalaf (Morocco) 13,591 4.8% 12.4% Wafabail (Morocco) 1
Slide 20: NIMs: significant optimization of cost of funding in Morocco
1 NIMs : significant optimization of cost of funding in Morocco and stabilization of yields in Africa Significant optimization of Cost of Funding in Morocco Stabilisation of loans yields of International Retail Banking (pbs) (pbs) +7 bps 759 717 697 696 659 666 -25 bps 143 140 121 107 114 89 2013 20
Slide 21: Growth of fees by business lines
2 Growth of fees by business lines X% +/- MAD billion BMET Specialized Financial Companies +7.3% +3.8% Net fee income 1.01 1.08 0.45 0.47 +3.6% June-2016 June-2017 June-2016 June-2017 2.17 2.25 International Retail Banking +0.7% at a +1.0% constant exchange rate and scope June-2016 June-2017 0.95 0.
Slide 22: Growth of income from market activities
3 Growth of income from market activities X% +/- BMET Specialized Financial Companies MAD billion -11.6% +11.1% 1.34 1.18 0.01 0.01 Income from market activities June-2016 June-2017 June-2016 June-2017 -3.0% Decrease of market revenues in Morocco due to non-recurring 1.99 revenues in 1H2016 (importa
Slide 23: IFRS consolidated financial statements in June 2017
IFRS consolidated financial statements in June 2017 X% +/- Operating income Cost-Income ratio (in MAD billion) June 2017 (%) 45.3% +0.4pt 45.7% 4 General operating expenses* 4.8 +4.8% Gross operating income 5.7 +3.5% 5 Cost of risk 0.9 -17.3% Operating income 4.8 +8.7% (*) including depreciations, a
Slide 24: Growth of expenses by business lines
4 Growth of expenses by business lines X% +/- X% Cost-Income ratio MAD million BMET Specialized Financial Companies 45.1% 47.1% 42.5% 43.5% +2.5% +5.6% Expenses 2,153 2,225 45.3% 45.7 485 512 +4.8% 4,577 4,796 June-2016 June-2017 June-2016 June-2017 International Retail Banking Insurance 54.5% 51.0%
Slide 25: Evolution of Cost of Risk by business lines
5 Evolution of Cost of Risk by business lines X% +/- X% CoR (%) MAD million BMET Specialized Financial Companies 0.94% 0.54% 0.61% 0.58% -40.4% -1.4% 856 Cost of Risk 510 0.79% 0.61% 88 87 -17.3% 1,104 June-2016 June-2017 June-2016 June-2017 913 International Retail Banking Insurance 0.38% 0.63% 2.6
Slide 26: Growth of customer loans, NPL ratio and coverage ratio
+/- at a constant 5 Growth of customer loans, NPL ratio and coverage ratio by x% scope and exchange rate business lines X% +/- Specialized Financial International Retail BMET AWB (Consolidated loans) Companies Banking (MAD bn) +4.0% +4.7% +16.9% 264 +6.7% 282 Customer Loans 176 183 +9.7% +5.1% 57 67
Slide 27: NPLs, coverage and cost of risk
5 IFRS consolidated financial statements NPLs, coverage and cost of risk NPL ratio Cost of risk 7.1% 7.0% 7.1% 113 bps 6.8% 83 bps 70 bps 61 bps 50 bps 2014 2015 2016 June-2017 Average 2014 2015 2016 June-2017 2007-2013 Proactive, conservative and anticipatory risk Coverage ratio management approach
Slide 28: IFRS consolidated financial statements in June 2017
IFRS consolidated financial statements in June 2017 Net Income Group Share (In MAD billion) June 2017 (%) Net income up +10.4% 6 Net Income 3.3 +10.4% Net income group share up +5.4% 7 Net Income Group Share 2.6 +5.4% Good profitability in line with best standards : RoE of RoE 15.6%* +0.1 pt 15.6%*
Slide 29: Growth of NI by business lines
6 Growth of NI by business lines X% +/- MAD million BMET Specialized Financial Companies +11.6% +2.9% 1,339 1,494 Net income +7.9% at a constant exchange rate and 357 368 scope +10.4% 3,264 June-2016 June-2017 June-2016 June-2017 2,956 International Retail Banking Insurance +6.7% at a constant +15.3
Slide 30: Growth of NIGS by business lines
7 Growth of NIGS by business lines X% +/- MAD million BMET Specialized Financial Companies +11.6% +5.8% 1,329 1,483 Net income group share +8.5% at a constant scope 273 289 and exchange +5.4% rate June-2016 June-2017 June-2016 June-2017 2,630 2,495 International Retail Banking Insurance +6.4% at a +
Slide 31: Main contributors to net income group share in June 2017
7 Main contributors to net income group share in June 2017 in MAD million Subsidiaries June 2017 contributions Weight Growth Rate Attijariwafa bank (Morocco) 1,420 54.0% 12.2% +2.1% at a Wafa Assurance (Morocco) 156 5.9% -48.9% constant scope* +15.8% at a CBAO (Senegal) 125 4.7% 6.6% constant exchan
Slide 32: AWB Egypt: accretion in Earnings Per Share (EPS)
7 AWB Egypt : accretion in Earnings Per Share (EPS) Acquisition of 100% of AWB Egypt Reduction of % of participation in Wafa Assurance Issuance of a perpetual debt eligible in Additional Tier1 Impact* on the Earnings Per Share (EPS) Impact* on (RoA) Consolidation of AWB Egypt -5.6% - Contribution to
Slide 33: RoA by business lines
8 RoA by business lines X% +/- BMET Specialized Financial Companies +0.01pt -0.03pt 2,33% 2.30% RoA 1.02% 1.03% 1.47%* +0.05 pt 1.42% 1.40% June-2016 June-2017 June-2016 June-2017 International Retail Banking Insurance 2.13%* -0.10pt -0.10pt June-2016 June-2017 2,31% 2.21% 1.93% 1.83% June-2016 June
Slide 34: RoA by business line between 2008 and June 2017
8 RoA by business line between 2008 and June 2017 xx% Contribution to total assets (end of period) 67% 67% 66% 68% 67% 66% 64% 62% 62% 1.3% 1.4% 1.2% 1.1% 0.9% 1.0% 1.0% 1.0% 1.0% BMET 2009 2010 2011 2012 2013 2014 2015 2016 1H17 18% 18% 19% 18% 20% 20% 22% 22% 24% 1.7% 1.6% 1.9% 1.7% 1.8% 2.13%* 1.
Slide 35: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2017 Regulatory ratios as of June 30, 2017 Attijariwafa bank share price performance 35 - 1H-2017 Results- Attijariwafa bank
Slide 36: Regulatory ratios
Regulatory ratios Capital Adequacy ratio Tier 1 CAR Consolidated basis 12.7% 12.6% 12.5% 13.3% Minimum 12.3% requirements: 12% 9.9% 10.1% 10.1% 10.8% 9.8% Minimum requirements Tier 1 : 9% (CET: 8% and AT1: 1%) Capital adequacy 2013 2014 2015 2016 June-17F Capital Adequacy ratio Tier 1 CAR 14.2% 12.8
Slide 37: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2017 Regulatory ratios as of June 30, 2017 Attijariwafa bank share price performance 37 - 1H-2017 Results- Attijariwafa bank
Slide 38: Attijariwafa bank share price performance
Attijariwafa bank share price performance Attijariwafa bank vs MASI from 12-31-11 to 09-14-17 135 MASI ATTIJARIWAFA BANK Base 100 Dec 11 Share price as of 30 June 2017: 2017 MAD 440 AWB :+16.2% 2013 MASI: +9.4% AWB : -2.6% 2016 Share price as of 14th September 2014 110 MASI: -2.6% AWB :+22.2% 2017:
Slide 39: Attijariwafa bank market indicators
Attijariwafa bank market indicators Attijariwafa bank 12/31/2015 12/31/2016 06/30/2017 Share price 338 413 440 Year High 382 420 450 Year Low 325 327 396 P/B 1.86x 2.06x 2.20x P/E (*) 15.3x 17.7x 17.0x DY 3.26% 2.91% - Number of shares 203,527,226 203,527,226 203,527,226 Market capitalization(**) 68
Slide 40: Back up
Back up 40 - 1H-2017 Results- Attijariwafa bank
Slide 41: Main contributors to net banking income in June 2017
Main contributors to net banking income in June 2017 in MAD million Subsidiaries June 2017 Contributions Weight Growth Rate Attijariwafa bank (Morocco) 4,987 46.5% -1.4% Wafa Assurance (Morocco) 913 8.5% 8.8% +8.1% at a Attijari bank Tunisie (Tunisia) 728 6.8% -4.4% constant exchange rate CBAO (Sene
Slide 42: Net interest margin by business line between 2008 and June 2017
Net interest margin by business line between 2008 and June 2017 xx% Contribution to customer loans (end of period) 72% 72% 72% 72% 71% 70% 66% 66% 65% 3.8% 3.9% 3.8% 3.6% 3.7% 3.7% 4.0% 3.8% 3.8% BMET 2009 2010 2011 2012 2013 2014 2015 2016 1H17 Net interest margin/ customer loans (end of period) 16
Slide 43: Net fee income by business line between 2008 and June 2017
Net fee income by business line between 2008 and June 2017 xx% Contribution to net banking income 58% 56% 54% 55% 54% 56% 54% 53% 50% 18.5% 19.6% 19.1% 18.7% 18.2% 16.2% 18.0% 20.3% 20.1% BMET 2009 2010 2011 2012 2013 2014 2015 2016 1H17 Net fee income/ Net banking income 16% 22% 24% 25% 26% 26% 28%
Slide 44: Cost-Income ratio by business line between 2008 and June 2017
Cost-Income ratio by business line Between 2008 and June 2017 xx% Contribution to net banking income 58% 56% 54% 55% 54% 56% 54% 53% 50% 47.4% 47.1% 41.5% 41.9% 44.1% 43.1% 44.5% 42.0% 46.7% BMET 2009 2010 2011 2012 2013 2014 2015 2016 1H17 16% 22% 24% 25% 26% 26% 28% 29% 30% 58.2% 60.1% 61.3% 57.2%
Slide 45: Cost of risk by business line between 2008 and June 2017
Cost of risk by business line between 2008 and June 2017 xx% Contribution to gross customer loans (end of period) 70% 71% 71% 71% 70% 69% 66% 66% 65% 1.15% 0.86% 0.76% 0.76% BMET 0.54% 0.37% 0.33% 0.37% 0.38% 2009 2010 2011 2012 2013 2014 2015 2016 1H17 Cost of risk 1.13% 17% 17% 18% 17% 19% 19% 22%