Attijariwafa Bank Sa · CSEMA:ATW
Attijariwafa Bank Sa — FY2018 Earnings Presentation
50 slides from Attijariwafa Bank Sa's earnings presentation, March 2019
Slide 1: Financial Communication 2018
Attijariwafa bank As of 31 December 2018 Financial Communication 2018
Slide 2: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31, 2018 Regulatory ratios as of December 31, 2018 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 6.4 West Africa 2.7% 3.3% 3.6% 6.1 6.3 6.3 WAEMU1 6.6% 6.4% 6.3% 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 2018 figures 1 3 2 4 Morocco Tunisia Mauritania Egypt Senegal Burkina-Faso North Africa GDP growth : 3.3% GDP growth : 2.4% GDP growth : 2.5% GDP growth : 5.3% GDP growth : 7.0% GDP growth : 5.9% GDP/cap (USD) : 3,368 GDP/cap (USD) : 3,428 GDP/
Slide 5: Continuous improvement of macroeconomic environment in Morocco in 2018
1 Continuous improvement of macroeconomic environment in Morocco in 2018 Main economic indicators Economic growth 2017 2018 2019F GDP growth rate of 3.3% in 2018 Real GDP growth 4.1% 3.3% 3.1% Improvement of non-agricultural growth: +3.1% in 2018 Agricultural GDP 15.4% 4.6% -0.8% Inflation rate of 1
Slide 6: Slight increase of government bond yields since 2017
1 Slight increase of government bond yields since 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% Stable mandatory reserve requirements at 4.0% after an increase of 200 bps (
Slide 7: Moroccan financial market in 2018
1 Moroccan financial market in 2018 Financial market trends in 2018 2016 2017 2018 Stock exchange market’s trend in 2018: MASI 30.5% 6.4% -8.3% - 8.3% YoY decrease of MASI as of 31 December MADEX 31.6% 5.8% -8.6% 2018 (-2.0% Ytd as of 28 February 2019) Trading volume (MAD bn) 72.7 69.7 52.7 Market C
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 26.0% 26.5% 26.7% 26.3% 26.2% 26.0% 26.2% 26.0% 26.7% 26.7% 26.5% 27.0% 25.5% +5% +5% +3% 842 868 802 587 6.2% 6.5% 6.5% 5.0% 5.3% 4.3% 4.1% 5.0% 3.2% 3.2% 3.9% 3.1% 2.0% 2009
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 +7% +4% +4% 249 259 240 24.3% 24.7% 24.2% 24.0% 23.4% 23.3% 23.0% 23.3% 23.5% 23.9% 24.1% 24.3% 24.5% 146 9.7% 7.2% 6.3% 6.6% 5.0% 3.5% 4.5% 4.7% 4.5% 4.2% 4.0% 3.
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% 7.54% 6.92% 6.33% 6.00% 6.03% First drop in 5 5.04% 4.94% 4.99% years 2004 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 P1 Significant improvement of
Slide 11: Significant improvement of the macroeconomic environment in Egypt after reforms
2 Significant improvement of the macroeconomic environment in Egypt after reforms GDP growth Inflation Improvement of inflation rate in 2018 (13.9% New Floating forecasted by IMF) 5.5% 5.3% exchange rate regime Acceleration of in November 2016 economic 4.2% 14% growth and 12% 28% decrease of inflati
Slide 12: Macroeconomic environment in 2018 Tunisia, Senegal and Ivory Coast
Macroeconomic environment in 2018 Tunisia, Senegal and Ivory Coast 3 Tunisia: main economic indicators 2017 2018 2019F GDP growth recovery to 2.4% in 2018 and 2.9% in 2019F Real GDP growth 2.0% 2.4% 2.9% Higher inflation rate in 2018 (8.1%) and 7.5% in 2019F Inflation rate 5.3% 8.1% 7.5% Low level o
Slide 13: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31, 2018 Regulatory ratios as of December 31, 2018 Attijariwafa bank share price performance 13
Slide 14: FY2018 consolidated P&L
FY2018 consolidated P&L Growth Rate (in MAD million) 2017 2018 Growth Rate* at a constant scope** and exchange rate Net banking income 21,645 22,371 3.4% 1.4% 1 Net interest income 12,908 13,995 8.4% 6.0% 2 Net fee income 4,787 5,034 5.2% 3.8% Income from market activities 3,906 3,841 -1.7% 2.2% Oth
Slide 15: FY 2018 key indicators
FY 2018 key indicators 2017 2018 Net interest margin (bps)* 451 459 Cost income ratio 46.1% 47.9% NPL ratio 7.0% 6.8% Cost of risk 0.72% 0.53% ROA 1.38% 1.32% ROE 14.89% 15.40% (*) Net interest income / net customer loans 15 - 2018FY Results- Attijariwafa bank
Slide 16: Growth of NBI by business lines
Growth of NBI by business lines X% +/- MAD billion BMET Specialized Financial Companies +3.8% +0.6% +1.4% at a constant 11.1 11.5 exchange rate NBI and scope 2.4 2.4 +3.4% 21.6 22.4 2017 2018 2017 2018 International Retail Banking Insurance • +4.6% at a constant +8.8% exchange rate and scope -26.1%
Slide 17: Growth of Net Interest Income by business lines
1 Growth of Net Interest Income by business lines X% +/- MAD billion BMET Specialized Financial Companies +5.1% +7.1% +6.0% at a constant 6.9 7.3 exchange rate Net interest income and scope 1.1 1.2 +8.4% 14.0 2017 2018 2017 2018 12.9 International Retail Banking Insurance +2.6% at a +8.1% constant +
Slide 18: Growth of loans by business lines
1 Growth of loans by business lines X% +/- MAD billion BMET Specialized Financial Companies +12.7% +3.5% 204 181 +10.6% at a constant Loans exchange rate 30 31 +9.1% Dec-17 Dec-18 Dec-17 Dec-18 305 280 International Retail Banking Insurance +8.3% at a +2.0% constant +3.6% Dec-17 Dec-18 exchange rate
Slide 19: Growth of fees by business lines
2 Growth of fees by business lines X% +/- • Bank in Morocco: +9.9% MAD billion • Wafa gestion : -15.4% • Attijari Finances Corp: -25.7% • Attijari Intermédiation: -24.9% BMET Specialized Financial Companies +3.8% at a +6.0% -1.9% constant exchange Net fee income rate and scope 2.32 2.46 +5.2% 0.95 0
Slide 20: Growth of expenses by business lines
3 Growth of expenses by business lines X% +/- X% Cost-Income ratio MAD million BMET Specialized Financial Companies 47.5% 47.6% 42.9% 41.0% +3.9% -3.8% +4.8% at a constant exchange rate, Expenses a constant scope 5,258 5,465 46.1% 47.9% 10,713 1,031 991 9,981 +7.3% 2017 2018 2017 2018 International
Slide 21: 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 0.67% 0.35% 0.59% 1.01% -41.7% +78.1% -20.1% at a constant exchange rate and 1,293 Cost of Risk scope 754 0.72% 0.53% 186 331 2,168 -20.5% 2017 2018 2017 2018 1,724 International Retail B
Slide 22: NPLs, coverage and cost of risk
4 IFRS consolidated financial statements NPLs, coverage and cost of risk NPL ratio Cost of risk (in bps) 113 83 70 72 50 53 6.8% 7.1% 7.0% 7.0% 6.8% Average 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2007-2013 22 - FY2018 Results- Attijariwafa bank
Slide 23: Customer Loans
4 Growth of customer loans, NPL ratio and coverage ratio by business lines X% +/- Specialized Financial International Retail BMET AWB (Consolidated loans) Companies Banking (MAD bn) 305.1 +12.7% +3.5% +2.0% 279.7 +9.1% Customer Loans 204.0 181.1 66.1 67.4 29.8 30.8 Dec-17 Dec-18 Dec-17 Dec-18 Dec-17
Slide 24: Customer Loans: Focus on IRB
4 Growth of customer loans, NPL ratio and coverage ratio by business lines: Focus on IRB* X% +/- International Retail North Africa WAEMU EMCCA (MAD bn) Banking 66.1 67.4 -3.3% +10.2% -3.6% +2.0% Customer Loans 28.2 27.2 26.3 29.0 11.7 11.2 Dec-17 Dec-18 Dec-17 Dec-18 Dec-17 Dec-18 Dec-17 Dec-18 +8.6
Slide 25: Exposures, staging & coverage
Exposures, staging & coverage In MAD billion, figures as of 31 December 2018 GROUP Exposure at default Coverage ratio Bucket 1 Bucket 2 Bucket 3 Total Bucket 1 Bucket 2 Bucket 3 Total Loans 275 29 22 326 0,8% 14,8% 66,4% 6,5% off balance loans 126 11 1 138 0,4% 2,4% 20,0% 0,7% Total 401 40 23 464 0,
Slide 26: Growth of NIGS by business lines
6 Growth of NIGS by business lines X% +/- MAD million BMET Specialized Financial Companies +15.0% -7.0% +3.5% at a 3,364 constant scope 2,924 Net income group share and exchange rate 586 545 5,391 +5.8% 5,706 2017 2018 2017 2018 International Retail Banking Insurance -3.1% at a 2017 2018 +2.9% const
Slide 27: Main contributors to net income group share in 2018
6 Main contributors to net income group share in 2018 in MAD million Growth Rate at a constant scope** Subsidiaries 2018 contributions Weight Growth Rate and exchange rate Attijariwafa bank (Morocco) 3,261 57.2% 18.3% 18.3% CBAO (Senegal) 311 5.5% 11.0% 9.8% SIB (Ivory-Coast) 291 5.1% 10.0% 8.8% Att
Slide 28: RoA by business lines
RoA by business lines X% +/- BMET Specialized Financial Companies +0.06pt 2.22% -0.26pt 1.96% RoA 1.02% 1.08% -0.06 pt 2017 2018 2017 2018 1.38% 1.32% International Retail Banking Insurance +0,06pt -1.02pt 2017 2018 1.91% 1.97% 1.80% • 2.04% at a constant scope 0.78% • IRB excl. AWB Egypt - 2007: 1.
Slide 29: Potential liabilities: on-going Customs Department inspection regarding Attijari bank Tunisie
Potential liabilities: on-going Customs Department inspection regarding Attijari bank Tunisie Some Foreign Trade operations, initiated by Attijari bank Tunisie’s clients, have been for the past few days subject to an inspection from The Customs Department on potential regulatory breaches. The inspec
Slide 30: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31, 2018 Regulatory ratios as of December 31, 2018 Attijariwafa bank share price performance 30 - FY2018 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% Minimum 12.3% requirements: 12% 9.9% 10.1% 10.1% 10.8% 9.7% 10.2% Minimum requirements Tier 1 : 9% (CET1: 8% and AT1: 1%) Capital adequacy 2013 2014 2015 2016 2017 2018E Capital Adequacy ratio Tier 1
Slide 32: Main impacts on CAR in 2018
Main impacts on CAR in 2018 Capital increase of 2,4 MAD billion dedicated to staff Capital increase Capital increase of 1,9 MAD billion on Capital Adequacy Ratios (+80 bps on AWB ‘s CAR and +50 bps on AWB Group’s CAR) Issuance of 500 MAD million AT1 eligible in Tier1 capital (perpetual AT1 subordina
Slide 33: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31, 2018 Regulatory ratios as of December 31, 2018 Attijariwafa bank share price performance 33 - FY2018 Results- Attijariwafa bank
Slide 34: Attijariwafa bank share price performance
Attijariwafa bank share price performance Attijariwafa bank vs MASI from 12-31-12 to 03-19-19 Share price as of 31 December 2018: MAD 453 Share price as of March 19, 2019: MAD 438.10 Largest market capitalization in the banking sector and 2nd largest in Morocco: MAD 95.1 billion as of December 31, 2
Slide 35: Attijariwafa bank market indicators
Attijariwafa bank market indicators Attijariwafa bank 12/31/2016 12/31/2017 12/31/2018 03/19/2019 Share price 413 484 453 438 Year High 420 500 514 463 Year Low 327 396 416.5 425.3 P/B (*) 2.1x 2.3x 2.1x 2.0x*** P/E (*) 17.7x 18.3x 16.7x 16.1x*** DY 2.91% 2.58% 2.87% 2.97%*** Number of shares 203,52
Slide 36: Back up
Back up 36 - FY2018 Results- Attijariwafa bank
Slide 37: Growth of NI by business lines
5 Growth of NI by business lines X% +/- MAD million BMET Specialized Financial Companies +14.3% -8.9% 2,966 3,391 +0.4% at a constant Net income exchange rate and scope 754 687 +2.3% 6,584 6,735 2017 2018 2017 2018 International Retail Banking Insurance +1.9% at a constant +6.0% exchange rate and -5
Slide 38: Main contributors to loans in FY 2018
1 Main contributors to loans in FY 2018 in MAD million Growth Rate Subsidiaries 2018 contributions Weight Growth Rate at a constant scope** and exchange rate Attijariwafa bank (Morocco) 199,796 65.5% 14.0%* 14.0% Attijari bank Tunisie (Tunisia) 18,113 5.9% -14.6% 1.9% Wafasalaf (Morocco) 14,951 4.9%
Slide 39: Main contributors to net banking income in FY 2018
Main contributors to net banking income in FY 2018 in MAD million Growth Rate Subsidiaries 2018 Contributions Weight Growth Rate at a constant scope** and exchange rate Attijariwafa bank (Morocco) 10,684 46.9% 4.7% 4.7% Attijari bank Tunisie (Tunisia) 1,525 6.7% 1.8% 15.2% Attijariwafa bank Egypt* 1
Slide 40: BMET: Cost of risk by business line between 2009 and 2018
Cost of risk by business line between 2009 and 2018 xx% Contribution to gross customer loans (end of period) 70% 71% 71% 71% 70% 69% 66% 66% 64% 66% 1.15% 0.86% 0.76% 0.76% 0.67% BMET 0.37% 0.33% 0.37% 0.38% 0.35% 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Cost of risk 1.13% 17% 17% 18% 17% 1
Slide 41: INSURANCE: RoA by business line between 2009 and 2018
RoA by business line between 2009 and 2018 xx% Contribution to total assets (end of period) 67% 67% 66% 68% 67% 66% 64% 62% 61% 62% 1.3% 1.4% 1.2% 1.1% 1.1% 0.9% 1.0% 1.0% 1.0% 1.0% BMET 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 18% 18% 19% 18% 20% 20% 22% 22% 24% 23% 1.7% 1.6% 2.0% 1.7% 1.9
Slide 42: BMET: Net interest margin by business line between 2009 and 2018
Net interest margin by business line between 2009 and 2018 72% 72% 72% 72% 71% 70% 66% 66% 65% 67% xx% Contribution to net customer loans (end of period) 3.8% 3.9% 3.8% 3.6% 3.7% 3.7% 4.0% 3.8% 3.8% 3.6% BMET 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Net interest margin/ customer loans (end
Slide 43: BMET: Net fee income by business line between 2009 and 2018
Net fee income by business line between 2009 and 2018 xx% Contribution to net banking income 58% 56% 54% 55% 54% 56% 54% 53% 50% 50% 18.5% 19.6% 19.1% 18.7% 18.2% 20.3% 21.0% 21.4% 16.2% 18.0% BMET 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Net fee income/ Net banking income 16% 22% 24% 25% 2
Slide 44: INSURANCE: Cost-Income ratio by business line between 2009 and 2018
Cost-Income ratio by business line Between 2009 and 2018 xx% Contribution to net banking income 58% 56% 54% 55% 54% 56% 54% 53% 50% 50% 47.4%47.5%47.6% 41.5%41.9% 44.1% 43.1% 44.5% 42.0% 46.7% BMET 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 16% 22% 24% 25% 26% 26% 28% 29% 33% 34% 58.2% 60.1%6
Slide 45: Attijariwafa bank Egypt's key figures vs. Benchmarks
Attijariwafa bank Egypt’s key figures vs. Benchmarks NIM (%) RoAA 8.9% 4.3% 4.0% 7.9% 6.9% 7.1% 3.2% 3.0% 3.0% 4.5% 2.3% 2.1% 3.9% 3.7% 2015 2016 2017 2018 2015 2016 2017 2018 AWB Egypt International banks AWB Egypt International banks Local banks* CIB QNB Local banks* CIB QNB RoAE Cost-Income ratio
Slide 46: Attijariwafa bank Egypt's profitability: analysis and benchmarks
Attijariwafa bank Egypt’s profitability : analysis and benchmarks ROAA (%) NBI / Total assets 4.0 7.7 7.6 6.2 4.8 3.0 2.3 2.1 AWB Egypt Local International CIB QNB ROAE (%) banks banks 34.5 29.4 24.5 Expenses / Total assets 4.0 AWB Egypt Local International CIB QNB 1.8 2.5 14.9 1.6 banks banks AWB E
Slide 47: IFRS 9 impacts
IFRS 9 impacts Negligible impacts on shareholders’ equity Impairment of credit risk principals Temporary exemption until 2021 from applying IFRS 9 to insurance entities consolidated by AWB along with IFRS 17 application* IAS 39 IFRS 9 12 months ECL Stage 1 – Performing Loans No loss recognized Only
Slide 48: IFRS 9 impact on shareholders' equity
IFRS 9 impact on shareholders’ equity Shareholders’ Equity as of December, 31st 2017 (in MAD million) AWB -9.1% GBCP -8.6% BMCE -10.4% -4,610 -3,746 -2,587 50,669 43,484 39,738 24,684 46,059 22,098 IAS 39 Impact IFRS 9 IAS 39 Impact IFRS 9 IAS 39 Impact IFRS 9 GBCP Shareholders’ equity incl. subsidi
Slide 49: Impact of the application of IFRS 9 on customer provisions (detail by bucket)
Impact of the application of IFRS 9 on customer provisions (detail by bucket ) Credit risk coverage at the end of December 2017 (MAD million): IAS 39 vs IFRS9 - Balance sheet and off balance sheet credit risk +6,774 +4,899 +3,390 +423 +925 +293 15,729 22,503 16,408 21,307 9,378 12,768 3,997 4,220 5,
Slide 50: Impact of the application of IFRS 9 on customer provisions (detail by bucket)
Impact of the application of IFRS 9 on customer provisions (detail by bucket) IFRS 9 : coverage ratios Xx Total IFRS9 provisions in MAD 7.2% 8.1% xx% IFRS 9 provisions / Customer loans* 5.2% 0.66% 6.3% 22,503 0.76% xx% IAS 39 provisions / Customer loans* 21,307 13,703 13,669 xx% IFRS 9 Bucket 1 prov