Attijariwafa Bank Sa · CSEMA:ATW
Attijariwafa Bank Sa — FY2016 Earnings Presentation
41 slides from Attijariwafa Bank Sa's earnings presentation, March 2017
Slide 1: Financial Communication
Attijariwafa bank As of 31 December 2016 Financial Communication 2017
Slide 2: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31, 2016 Regulatory ratios as of December 31, 2016 Attijariwafa bank share price performance 2
Slide 3: Macroeconomic environment in Africa in 2016
Macroeconomic environment in Africa in 2016 Real GDP growth in Africa Real GDP growth in North and Sub-Saharan Africa (%) 2015 2016E 2017F North Africa WAEMU1 Africa 3.6% 3.7% 4.5% 9.6 EMCCA 2 North Africa 3.5% 3.3% 3.8% West Africa 3.3% 4.3% 5.5% 6.3 6.3 6.3 6.3 6.5 6.1 Incl. WAEMU1 6.3% 6.3% 6.5%
Slide 4: Macroeconomic environment in Morocco in 2016
Macroeconomic environment in Morocco in 2016 Main economic indicators Economic growth 2015 2016E 2017F GDP growth rate of 1.1% in 2016E mainly due to a lower cereal harvest (33.5 million quintals vs 115 million of Real GDP growth 4.5% 1.1% 3.6% quintals in 2015) Agricultural GDP 13.0% -9.8% 9.7% - N
Slide 5: Focus on government bond yields between 2012 and 2016
Focus on government bond yields between 2012 and 2016 Monetary policy Successive cuts in key interest rate : in 2012 (-25 bps) and in 2014 (-25 bps in September and -25 bps in December) Additional cut of 25 bps in key interest rate in March 2016 to 2.25% Increase of mandatory reserves requirements f
Slide 6: Moroccan financial market in 2016
Moroccan financial market in 2016 Financial market trends in 2016 Pick up of stock market activities in 2016 2014 2015 2016 Upward trend of the market in 2016: MASI 5.6% -7.2% 30.5% - 30.5% YoY increase of MASI as of 31 MADEX 5.7% -7.5% 31.6% December 2016 Trading volume (MAD bn) 49.8 52.1 72.7 - 28
Slide 7: Macroeconomic environment in Africa in 2016
Macroeconomic environment in Africa in 2016 2016F figures North Africa Morocco Tunisia Mauritania Egypt** Senegal Burkina-Faso GDP growth : 1.1% GDP growth : 1.5% GDP growth : 3.2% GDP growth : 3.8% GDP growth : 6.6% GDP growth : 5.2% West Africa GDP/cap (USD) : 3,101 GDP/cap (USD) : 3,777 GDP/cap (
Slide 8: Macroeconomic environment in 2016 Tunisia, Senegal and Ivory Coast
Macroeconomic environment in 2016 Tunisia, Senegal and Ivory Coast Tunisia: main economic indicators 2015 2016E 2017F GDP growth recovery to 1.5% in 2016E and 2.8% in 2017F Real GDP growth 0.8% 1.5% 2.8% 3.7% inflation rate in 2016E (vs. 3.9% in 2017F) Inflation rate 4.9% 3.7% 3.9% TND/MAD down 8.1%
Slide 9: Moroccan banking sector
AWB market Moroccan banking sector shares in Morocco Focus on loans and deposits growth between 2009 and 2016 YoY growth X% CAGR X% +/- Deposits (MAD billion) Deposits: YoY growth +4% +6% +4% 25.95% 26.53% 25.47% 26.66% 26.29% 26.18% 26.01% 26.20% 25.95% 769 802 722 587 6.2% 6.5% 6.5% 5.3% 5.0% 3.9%
Slide 10: Moroccan banking sector
AWB market Moroccan banking sector shares in Morocco Focus on loans growth between 2009 and 2016 YoY growth X% CAGR X% +/- Retail loans (1) (MAD billion) Retail loans: YoY growth +8% +5% +5% 229 240 219 146 24.25% 24.68% 24.23% 24.03% 23.42% 23.31% 23.02% 23.31% 23.44% 9.7% 7.2% 5.0% 6.3% 6.6% 3.5%
Slide 11: 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% 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 P1 Significant improvement of the Moroccan Banking Sector NPL ratio between 2004 and 2011 thanks to a f
Slide 12: A more flexible FX rate regime in 2017
A more flexible FX rate regime in 2017 Context FX rate regime in Morocco The Moroccan authorities announced their intention to Currently : The Morrocan MAD is pegged to EUR and move gradually to a more flexible exchange rate regime USD (60% EUR; 40% USD) The new regime will help preserve competitive
Slide 13: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31, 2016 Regulatory ratios as of December 31, 2016 Attijariwafa bank share price performance 13
Slide 14: Attijariwafa bank Group key figures in 2016
Attijariwafa bank Group key figures in 2016 BMET: +6.8% SFC: +5.2% IRB: +10.5% (16.3% at a constant exchange rate) Total assets: MAD 429 bn NBI: MAD 19.7 bn 17,696 employees +4.3% +3.6% +2.7% Total savings*: MAD 404 bn Operating income: MAD 8.5 bn 3,972 branches +6.7% +7.0% +12.4% Total loans: MAD 2
Slide 15: IFRS consolidated financial statements in 2016
IFRS consolidated financial statements in 2016 Net banking income (in MAD billion) 2016 Weight Increase of consolidated NBI by 3.6% driven by NBI 19.7 100.0% 3.6% International Retail Banking’s NBI (+8.0%), Specialized 1 Net interest income 11.6 59.0% 1.9% Financial Companies (+3.8%) and Wafa Assura
Slide 16: Growth of NBI by business lines
Growth of NBI by business lines X% +/- MAD billion BMET Specialized Financial Companies +0.9% +3.8% 10.5 10.6 NBI 2.2 2.3 +3.6% 19.0 19.7 2015 2016 2015 2016 International Retail Banking Insurance +10.5% at a +8.0% constant +2.5% 2015 2016 exchange rate 5.4 5.8 1.4 1.4 2015 2016 2015 2016 16 - 2016
Slide 17: Growth of NIM by business lines
1 Growth of NIM by business lines X% +/- MAD billion BMET Specialized Financial Companies +0.3% +1.2% 6.8 6.8 Net interest income 1.04 1.06 +1.9% 2015 2016 2015 2016 11.4 11.6 +6.8% +1.0pt market share gain in +5.2% Morocco +4.3% ₋ Retail loans: +0.4pt NA ₋ Corporate loans : +1.4pt International Ret
Slide 18: Main contributors to loans in 2016
1 Main contributors to loans in 2016 in MAD million Subsidiaries 2016 contributions Weight Growth Rate Attijariwafa bank (Morocco) 173,975 64.0% 6.2%* +16.5% at a Attijari bank Tunisie (Tunisia) 21,189 7.8% 3.4% constant exchange rate Wafasalaf (Morocco) 12,940 4.8% 9.5% Wafabail (Morocco) 11,802 4.
Slide 19: Growth of fees by business lines
2 Growth of fees by business lines X% +/- MAD billion BMET Specialized Financial Companies +13.8% +5.6% 1.90 2.16 Net fee income 0.87 0.91 +9.4% 2015 2016 2015 2016 4.42 4.04 International Retail Banking +7.5% at a +5.4% constant exchange rate 2015 2016 1.75 1.84 2015 2016 Tunisia : +12.4% (+22.4% a
Slide 20: IFRS consolidated financial statements in 2016
IFRS consolidated financial statements in 2016 X% +/- Operating income Cost-Income ratio (in MAD billion) 2016 (%) 46.4% +0.1pt 46.5% 3 General operating expenses* 9.1 +3.8% Gross operating income 10.5 +3.4% 4 Cost of risk 2.0 -9.7% Operating income 8.5 +7.0% (*) including depreciations, amortizatio
Slide 21: Growth of expenses by business lines
3 Growth of expenses by business lines X% +/- X% Cost-Income ratio MAD million BMET Specialized Financial Companies 46.7% 47.4% 38.9% 41.4% +2.5% +10.6% Expenses 4,907 5,030 46.4% 46.5% 8,811 9,143 870 963 +3.8% 2015 2016 2015 2016 International Retail Banking Insurance 56.5% 52.8% 37.2% 40.3% 2015
Slide 22: Growth of Cost of Risk by business lines
4 Growth of Cost of Risk by business lines X% +/- X% CoR (%) MAD million BMET Specialized Financial Companies 0.76% 0.76% 0.61% 0.57% +6.7% -1.7% Cost of Risk 1,337 1,426 0.83% 0.70% 2,217 174 171 -9.7% 2,001 2015 2016 2015 2016 International Retail Banking Insurance 1.07% 0.56% 2.10% 1.06% 2015 201
Slide 23: Customer Loans Coverage ratio
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) +6.8% 179 +5.2% +10.5% 253 +7.4% 272 Customer Loans 168 61 55 27 29 2015 2016 2015 2016 2015 2016 2015 2016 +0.1pt +0.
Slide 24: NPLs, coverage and cost of risk
4 IFRS consolidated financial statements NPLs, coverage and cost of risk NPL ratio Cost of risk 7.1% 7.0% 113 bps 6.8% 83 bps 70 bps 50 bps 2014 2015 2016 Average 2007- 2014 2015 2016 2013 Coverage ratio Proactive, conservative and anticipatory risk management approach: - Early identification of ris
Slide 25: IFRS consolidated financial statements in 2016
IFRS consolidated financial statements in 2016 Net Income Group Share (In MAD billion) 2016 (%) Net income up +6.7% 6 Net Income 5.7 +6.7% Net income group share up +5.7% 7 Net Income Group Share 4.8 +5.7% Good profitability in line with best standards : RoE of 8 RoE 13.5% -1.2 pt 13.5% and RoA of 1
Slide 26: Growth of NI by business lines
6 Growth of NI by business lines X% +/- MAD million BMET Specialized Financial Companies +1.0% +1.2% 2,549 2,574 Net income 741 750 +6.7% 5,653 5,300 2015 2016 2015 2016 International Retail Banking Insurance +27.7% at a +23.8% constant +0.1% 2015 2016 exchange rate 1,336 1,655 674 675 2015 2016 201
Slide 27: Growth of NIGS by business lines
7 Growth of NIGS by business lines X% +/- MAD million BMET Specialized Financial Companies +1.0% +4.0% 2,525 2,549 Net income group share 556 579 4,502 +5.7% 4,757 2015 2016 2015 2016 International Retail Banking Insurance +29.5% at a +26.0% constant scope -4.0% 2015 2016 and constant exchange rate
Slide 28: Main contributors to net income group share in 2016
7 Main contributors to net income group share in 2016 in MAD million Subsidiaries 2016 contributions Weight Growth Rate Attijariwafa bank (Morocco) 2,458 51.7% 0.9% +0.2% at a constant scope Wafa Assurance (Morocco) 513 10.8% -4.0% +15.1% at a Attijari bank Tunisie (Tunisia) 264 5.5% -5.7% constant
Slide 29: RoA by business lines
8 RoA by business lines X% +/- BMET Specialized Financial Companies -0.0pt 2.5% -0,2pt 2.3% RoA 0.98% 0.96 +0.03 pt 1.29% 1.32% 2015 2016 2015 2016 International Retail Banking Insurance +0.2pt -0.2pt 2015 2016 2.2% 2.0% 1.7% 1.5% 2015 2016 2015 2016 29 - 2016 FY Results- Attijariwafa bank
Slide 30: RoA by business line between 2008 and 2016
RoA by business line between 2008 and 2016 xx% Contribution to total assets (end of period) 72% 67% 67% 66% 68% 67% 66% 64% 62% 1.3% 1.4% 1.2% 1.1% 1.1% 0.9% 1.0% 1.0% 1.0% BMET 2008 2009 2010 2011 2012 2013 2014 2015 2016 13% 18% 18% 19% 18% 20% 20% 22% 22% 1.6% 1.7% 1.6% 1.9% 1.7% 1.3% 1.4% 1.5% R
Slide 31: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31, 2016 Regulatory ratios as of December 31, 2016 Attijariwafa bank share price performance 31 - 2016 FY Results- Attijariwafa bank
Slide 32: Regulatory ratios
Regulatory ratios Capital Adequacy ratio Tier 1 CAR Consolidated basis Minimum 12.7% 12.6% 12.5% 12.5% requirements: 12% 9.9% 10.1% 10.1% 10.1% Minimum requirements Tier 1 : 9% (CET: 8% and AT1: 1%) Capital adequacy 2013 2014 2015 1H16 Capital Adequacy ratio Tier 1 CAR 12.8% 12.7% Parent company 12.
Slide 33: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31, 2016 Regulatory ratios as of December 31, 2016 Attijariwafa bank share price performance 33 - 2016 FY Results- Attijariwafa bank
Slide 34: Attijariwafa bank share price performance
Attijariwafa bank share price performance Attijariwafa bank vs MASI from 12-31-11 to 03-06-17 145 MASI ATTIJARIWAFA BANK Base 100 Dec 11 2017 Share price as of 31 December AWB :+3.6% MASI: +2.9% 2016: MAD 413 2013 2016 2012 AWB : -2.6% 2014 Share price as of 06 March MASI: -2.6% AWB :+22.2% 120 AWB
Slide 35: Attijariwafa bank market indicators
Attijariwafa bank market indicators Attijariwafa bank 12/31/2014 12/31/2015 12/31/2016 Share price 344 338 413 Year High 349 382 420 Year Low 303.3 325 327 P/B 1.97x 1.86x 2.06x P/E (*) 16.08x 15.28x 17.67x DY 2.91% 3.26% 2.91% Number of shares 203,527,226 203,527,226 203,527,226 Market capitalizati
Slide 36: Back up
Back up 36 - 2016 FY Results- Attijariwafa bank
Slide 37: Main contributors to net banking income in 2016
Main contributors to net banking income in 2016 in MAD million Subsidiaries 2016 Contributions Weight Growth Rate Attijariwafa bank (Morocco) 9,701 48.1% -0.3% +15.0% at a Attijari bank Tunisie (Tunisia) 1,497 7.4% 5.6% constant exchange rate Wafa Assurance (Morocco) 1,436 7.1% 2.5% CBAO (Senegal) 1
Slide 38: Net interest margin by business line between 2008 and 2016
Net interest margin by business line between 2008 and 2016 xx% Contribution to customer loans (end of period) 74% 72% 72% 72% 72% 71% 70% 66% 66% 4.2% 3.8% 3.9% 3.8% 3.6% 3.7% 3.7% 4.0% 3.8% BMET 2008 2009 2010 2011 2012 2013 2014 2015 2016 Net interest margin/ customer loans (end of period) 4.5% 4.
Slide 39: Net fee income by business line between 2008 and 2016
Net fee income by business line between 2008 and 2016 xx% Contribution to net banking income 60% 58% 56% 54% 55% 54% 56% 54% 53% 22.9% 18.5% 19.6% 19.1% 18.7% 18.2% 20.3% 16.2% 18.0% BMET 2008 2009 2010 2011 2012 2013 2014 2015 2016 Net fee income/ Net banking income 15% 16% 22% 24% 25% 26% 26% 28%
Slide 40: Cost-Income ratio by business line between 2008 and 2016
Cost-Income ratio by business line Between 2008 and 2016 xx% Contribution to net banking income 60% 58% 56% 54% 55% 54% 56% 54% 53% 47.4% 47.0% 41.5% 41.9% 44.1% 43.1% 44.5% 42.0% 46.7% BMET 2008 2009 2010 2011 2012 2013 2014 2015 2016 15% 16% 22% 24% 25% 26% 26% 28% 29% 53.7% 58.2% 60.1% 61.3% 57.2
Slide 41: Cost of risk by business line between 2008 and 2016
Cost of risk by business line between 2008 and 2016 xx% Contribution to gross customer loans (end of period) 73% 70% 71% 71% 71% 70% 69% 66% 66% 1.15% 0.86% 0.76% 0.76% BMET 0.37% 0.33% 0.37% 0.38% 0.17% 2008 2009 2010 2011 2012 2013 2014 2015 2016 Cost of risk 1.13% 14% 17% 17% 18% 17% 19% 19% 22%