Attijariwafa Bank Sa · CSEMA:ATW
Attijariwafa Bank Sa — FY2017 Earnings Presentation
47 slides from Attijariwafa Bank Sa's earnings presentation, March 2018
Slide 1: Financial Communication 2017
Attijariwafa bank As of 31 December 2017 Financial Communication 2017
Slide 2: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31, 2017 Regulatory ratios as of December 31, 2017 Attijariwafa bank share price performance 2
Slide 3: Improvement of macroeconomic environment in all African regions in 2017 and 2018
Improvement of macroeconomic environment in all African regions in 2017 and 2018 Real GDP growth in Africa Real GDP growth in North and Sub-Saharan Africa (%) 2016 2017 2018F North Africa 9.6 WAEMU1 Africa 2.2% 3.4% 4.3% EMCCA 2 North Africa 3.0% 3.4% 3.7% 6.3 6.3 6.2 6.3 6.4 West Africa 0.4% 3.5% 5
Slide 4: Macroeconomic environment in AWB's main African markets
Macroeconomic environment in AWB’s main African markets 2017 figures 1 3 2 4 Morocco Tunisia Mauritania Egypt Senegal Burkina-Faso North Africa GDP growth : 4.0% GDP growth : 2.3% GDP growth : 3.8% GDP growth : 4.1% GDP growth : 6.8% GDP growth : 6.4% GDP/cap (USD) : 3,176 GDP/cap (USD) : 3,517 GDP/
Slide 5: Continuous improvement of macroeconomic environment in Morocco in 2017
1 Continuous improvement of macroeconomic environment in Morocco in 2017 Main economic indicators Economic growth 2016 2017 2018F Pick up in economic growth from 1.2% in 2016 to 4.0% in 2017 thanks to the improvement of cereal harvest (95,6 Real GDP growth 1.2% 4.0% 2.8% million quintals vs 33 milli
Slide 6: Slight increase of government bond yields in 2017
1 Slight increase of government bond yields in 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 (Jun
Slide 7: Moroccan financial market in 2017
1 Moroccan financial market in 2017 Financial market trends in 2017 2015 2016 2017 Stock exchange market’s trend in 2017: MASI -7.2% 30.5% 6.4% - 6.4% YoY increase of MASI as of 31 December MADEX -7.5% 31.6% 5.8% 2017 Trading volume (MAD bn) 52.1 72.7 69.7 Market Cap. (MAD bn) 453.3 583.4 627.0 - 7.
Slide 8: Moroccan banking sector
AWB market 1 Moroccan banking sector shares in Morocco Pick up in loans in 2017… YoY growth X% CAGR X% +/- Deposits (MAD billion) Deposits: YoY growth +5% +4% +5% 25.95% 26.53% 25.47% 26.66% 26.29% 26.18% 26.01% 26.20% 25.95% 26.72% 26.64% 802 844 769 587 6.2% 6.5% 6.5% 5.3% 5.3% 5.0% 3.9% 4.3% 4.1%
Slide 9: Moroccan banking sector
AWB market 1 Moroccan banking sector shares in Morocco …driven by corporate loans YoY growth X% CAGR X% +/- Retail loans (1) (MAD billion) Retail loans: YoY growth +8% +5% +4% 240 249 229 146 24.25% 24.68% 24.23% 24.03% 23.42% 23.31% 23.02% 23.31% 23.44% 23.88% 24.03% 9.7% 7.2% 5.0% 6.3% 6.6% 3.5% 4
Slide 10: First drop of NPL ratio in Morocco since 2011
1 First drop of NPL ratio in Morocco since 2011 NPL ratio (Moroccan banking sector) P1 P2 P3 19.6% 8.61% 7.56% 7.91% 7.80% 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 P1 Significant improvement of the Moroccan Banking Se
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 (13.0% New Floating forecasted by IMF) 4.5% exchange rate regime Acceleration of 4.3% 4.1% in November 2016 economic 29% 21% growth and 12% decrease of inflati
Slide 12: Macroeconomic environment in 2017 Tunisia, Senegal and Ivory Coast
Macroeconomic environment in 2017 Tunisia, Senegal and Ivory Coast 3 Tunisia: main economic indicators 2016 2017 2018F GDP growth recovery to 2.3% in 2017 and 3.0% in 2018F Real GDP growth 1.0% 2.3% 3.0% Higher inflation rate in 2017 (4.5%) and slight decrease in 2018F Inflation rate 3.7% 4.5% 4.4%
Slide 13: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31, 2017 Regulatory ratios as of December 31, 2017 Attijariwafa bank share price performance 13
Slide 14: Attijariwafa bank Group key figures in 2017
Attijariwafa bank Group key figures in 2017 Total assets: MAD 476 bn NBI: MAD 21.6 bn 19,754 employees +10.9% +10.0% Total savings*: MAD 440 bn Gross operating MAD 11.7 bn 4,306 branches income: +8.8% +10.8% Total loans: MAD 286 bn Net consolidated MAD 6.6 bn Number of covered countries income: +5.3
Slide 15: Main changes in consolidation scope
Main changes in consolidation scope X% Var. In MAD million NIGS at a constant scope* NIGS based on AWB Egypt consolidation from January 1, 2017 +11.3% +13.3% +11.3% 534 -259 +16.2% -41 137 5,528 397 -259 5,294 397 5,294 -41 5,391 4,757 4,757 NIGS RNPG2016 2016 NIGS RNPG2017 at Consolidation 2017 Eff
Slide 16: Main drivers of NIGS's growth between 2016 and 2017
Main drivers of NIGS’s growth between 2016 and 2017 In MAD million (+2.9 pts) (+2.1 pts) (+2.0 pts) (+6.3 pts) MAD 633 million (+13.3%) increase in NIGS * (*) IRB: International Retail Banking 16 - 2017FY Results- Attijariwafa bank
Slide 17: IFRS consolidated financial statements in 2017
IFRS consolidated financial statements in 2017 Net banking income (in MAD billion) 2017 Weight (%) Increase of consolidated NBI by 10.0% (+6.3% at a NBI 21.6 100.0% +10.0% constant exchange rate and scope) driven by International 1 Net interest income 12.9 59.6% +11.2% Retail Banking’s NBI (+23.7%),
Slide 18: Growth of NBI by business lines
Growth of NBI by business lines X% +/- MAD billion BMET Specialized Financial Companies +4.4% +3.4% +6.3% at a constant exchange rate 10.6 11.1 NBI and scope 2.3 2.4 +10.0% 21.6 2016 2017 2016 2017 19.7 International Retail Banking Insurance +11.3% at a +23.7% constant +0.2% 2016 2017 exchange rate
Slide 19: Growth of Net Interest Income by business lines
1 Growth of Net Interest Income by business lines X% +/- MAD billion BMET Specialized Financial Companies +2.2% +2.0% +5.6% at a constant 6.8 6.9 exchange rate Net interest income and scope 1.1 1.1 +11.2% 2016 2017 2016 2017 12.9 11.6 +3.1% +5.2% +8.3% NA International Retail Banking Insurance +12.6
Slide 20: Focus on IRB's loans growth
1 Focus on IRB’s* loans growth X% +/- MAD billion North Africa1 +15.4% at a constant +0.9% exchange rate 22.4 22.6 +5.0% at a constant exchange rate and scope 2016 2017 IRB* WAEMU2 +1.7% at a constant +12.3% +6.7% 27.1 exchange rate 5.8 25.4 60.8 62.4 2016 2017 2016 2017 Attijariwafa bank Egypt (fir
Slide 21: NIMs: significant optimization of cost of funding in Morocco and improvement of yields
1 NIMs : significant optimization of cost of funding in Morocco and improvement of yields in Africa [Loans yield: received interests / average outstanding loans]- [cost of funding: paid interest / average outstanding deposits] Bank in Morocco NIMs* (pbs) IRB** NIMS* excluding Egypt and in a constant
Slide 22: Growth of fees by business lines
2 Growth of fees by business lines X% +/- MAD billion BMET Specialized Financial Companies +7.7% +4.3% +6.4% at a constant exchange 2.32 2.16 Net fee income rate and scope 0.91 0.95 +8.3% 4.79 2016 2017 2016 2017 4.42 International Retail Banking +7.0% at a +11.5% constant exchange rate and scope 20
Slide 23: Growth of income from market activities
3 Growth of income from market activities X% +/- BMET Specialized Financial Companies MAD billion +11.0% -32.0% 2.28 2.53 0.03 0.02 Income from market activities 2016 2017 2016 2017 +14.5% 3.91 3.41 International Retail Banking Insurance 2016 2017 +13.9% +27.6% 0.53 0.69 0.88 0.46 2016 2017 2016 201
Slide 24: IFRS consolidated financial statements in 2017
IFRS consolidated financial statements in 2017 X% +/- Operating income Cost-Income ratio (in MAD billion) 2017 (%) 46.5% -0.4pt 46.1% 4 General operating expenses* 10.0 +9.2% Gross operating income 11.7 +10.8% 5 Cost of risk 2.2 +8.3% Operating income 9.5 +11.3% (*) including depreciations, amortiza
Slide 25: Growth of expenses by business lines
4 Growth of expenses by business lines X% +/- X% Cost-Income ratio MAD million BMET Specialized Financial Companies 47.4% 47.5% 41.4% 42.9% +5.5% at a constant exchange rate, a constant scope and excluding non +4.5% +7.1% recurring expenses related to AWB Expenses Egypt acquisition 5,030 5,258 46.5%
Slide 26: 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 0.76% 0.67% 0.57% 0.59% -9.4% +8.6% +7.1% at a constant exchange rate and 1,426 Cost of Risk 1,293 scope 0.70% 0.72% 171 186 +8.3% 2,001 2,168 2016 2017 2016 2017 International Retail Ban
Slide 27: Customer Loans, NPL and Coverage ratio by business lines
+/- 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) +3.1% +5.2% +12.3% 271.6 +5.3% 286.0 Customer Loans 179.4 184.9 +5.0% +3.
Slide 28: Customer Loans, NPL and Coverage ratio: Focus on IRB
+/- at a constant scope 5 Growth of customer loans, NPL ratio and coverage ratio by x% and exchange rate business lines: Focus on IRB* X% +/- x.x% A périmètre constant International Retail North Africa WAEMU EMCCA (MAD bn) Banking 68.2 +26.9% +6.7% -2.1% 60.8 +12.3% Customer Loans +15.6% +5.0% 28.4
Slide 29: 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% 113 bps 6.8% 7.0% 83 bps 70 bps 72 bps 50 bps 2014 2015 2016 2017 Average 2014 2015 2016 2017 2007-2013 Proactive, conservative and anticipatory risk Coverage ratio management approach: - Early
Slide 30: IFRS consolidated financial statements in 2017
IFRS consolidated financial statements in 2017 Net Income Group Share (In MAD billion) 2017 (%) Net income up +16.5% (+10.3% at a constant 6 Net Income 6.6 +16.5% exchange rate and scope) 7 Net Income Group Share 5.4 +13.3% Net income group share up +13.3% (+11.8% at a constant exchange rate and sco
Slide 31: Growth of NI by business lines
6 Growth of NI by business lines X% +/- MAD million BMET Specialized Financial Companies +15.2% +0.5% 2,574 2,966 Net income +10.3% at a constant exchange 750 754 rate and scope +16.5% 6,584 2016 2017 2016 2017 5,653 International Retail Banking Insurance +12.6% at a +33.6% constant exchange -3.2% 2
Slide 32: Growth of NIGS by business lines
7 Growth of NIGS by business lines X% +/- MAD million BMET Specialized Financial Companies +14.7% +1.3% 2,549 2,924 Net income group share +11.8% at a constant scope 579 586 and exchange +13.3% rate 2016 2017 2016 2017 5,391 4,757 International Retail Banking Insurance +14.8% at a +45.2% constant sc
Slide 33: Main contributors to net income group share in 2017
7 Main contributors to net income group share in 2017 in MAD million Subsidiaries 2017 contributions Weight Growth Rate Attijariwafa bank (Morocco) 2,756 51.1% 12.1% 7.4% and 9.7% on a Attijariwafa bank Egypt (Egypt) 397*** - comparable basis**** +15.0% at a CBAO (Senegal) 281 5.2% 41.4% constant ex
Slide 34: RoA by business lines
8 RoA by business lines X% +/- BMET Specialized Financial Companies +0.06pt -0.13pt 2.34% 2.22% RoA 0.96% 1.02% 1.41%* +0.07 pt 1.32% 1.38% 2016 2017 2016 2017 International Retail Banking Insurance 2.03%* +0.18pt -0.18pt 2016 2017 1.91% 1.98% 1.73% 1.80% 2016 2017 2016 2017 (*) Ratios based on 12 m
Slide 35: RoA by business line between 2008 and 2017
8 RoA by business line between 2008 and 2017 xx% Contribution to total assets (end of period) 67% 67% 66% 68% 67% 66% 64% 62% 61% 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 2017 18% 18% 19% 18% 20% 20% 22% 22% 24% 1.7% 1.6% 1.9% 1.7% 1.9% 2.03%* 1.3% 1.
Slide 36: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31, 2017 Regulatory ratios as of December 31, 2017 Attijariwafa bank share price performance 36 - 2017FY Results- Attijariwafa bank
Slide 37: 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% 9.6% Minimum requirements Tier 1 : 9% (CET: 8% and AT1: 1%) Capital adequacy 2013 2014 2015 2016 2017F Capital Adequacy ratio Tier 1 CAR 14.2% 12.8% 1
Slide 38: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of December 31, 2017 Regulatory ratios as of December 31, 2017 Attijariwafa bank share price performance 38 - 2017FY Results- Attijariwafa bank
Slide 39: Attijariwafa bank share price performance
Attijariwafa bank share price performance Attijariwafa bank vs MASI from 12-31-11 to 03-02-18 Share price as of 31 December 2017: MAD 484 Share price as of March 2, 2018: MAD 509 - Largest market capitalization in the banking sector and 2nd largest in Morocco: MAD 103.7 billion as of March 2, 2018 -
Slide 40: Attijariwafa bank market indicators
Attijariwafa bank market indicators Attijariwafa bank 12/31/2015 12/31/2016 12/31/2017 03/02/2018 Share price 338 413 484 509 Year High 382 420 500 514 Year Low 325 327 396 481 P/B (*) 1.9x 2.1x 2.3x - P/E (*) 15.3x 17.7x 18.3x - DY 3.26% 2.91% 2.58% - Number of shares 203,527,226 203,527,226 203,52
Slide 41: Back up
Back up 41 - 2017FY Results- Attijariwafa bank
Slide 42: Main contributors to loans in 2017
1 Main contributors to loans in 2017 in MAD million Subsidiaries 2017 contributions Weight Growth Rate Attijariwafa bank (Morocco) 178,943 62.6% 2.9%* +15.4% at a Attijari bank Tunisie (Tunisia) 21,269 7.4% 0.4% constant exchange rate Wafasalaf (Morocco) 14,264 5.0% 10.2% Wafabail (Morocco) 12,339 4
Slide 43: Main contributors to net banking income in 2017
Main contributors to net banking income in 2017 in MAD million Subsidiaries 2017 Contributions Weight Growth Rate Attijariwafa bank (Morocco) 10,206 47.2% 5.2% +13.9% at a constant Attijari bank Tunisie (Tunisia) 1,497 6.9% 0% exchange rate Wafa Assurance (Morocco) 1,438 6.6% 0.2% CBAO (Senegal) 1,1
Slide 44: Net interest margin by business line between 2008 and 2017
Net interest margin by business line between 2008 and 2017 xx% Contribution to net 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% 3.7% BMET 2009 2010 2011 2012 2013 2014 2015 2016 2017 Net interest margin/ customer loans (end of period) 16%
Slide 45: Net fee income by business line between 2008 and 2017
Net fee income by business line between 2008 and 2017 xx% Contribution to net banking income 58% 56% 54% 55% 54% 56% 54% 53% 50% 21.0% 18.5% 19.6% 19.1% 18.7% 18.2% 16.2% 18.0% 20.3% BMET 2009 2010 2011 2012 2013 2014 2015 2016 2017 Net fee income/ Net banking income 16% 22% 24% 25% 26% 26% 28% 29%
Slide 46: Cost-Income ratio by business line between 2008 and 2017
Cost-Income ratio by business line Between 2008 and 2017 xx% Contribution to net banking income 58% 56% 54% 55% 54% 56% 54% 53% 50% 47.4% 47.5% 41.5% 41.9% 44.1% 43.1% 44.5% 42.0% 46.7% BMET 2009 2010 2011 2012 2013 2014 2015 2016 2017 16% 22% 24% 25% 26% 26% 28% 29% 33% 58.2% 60.1% 61.3% 57.2% 56.3
Slide 47: Cost of risk by business line between 2008 and 2017
Cost of risk by business line between 2008 and 2017 xx% Contribution to gross customer loans (end of period) 70% 71% 71% 71% 70% 69% 66% 66% 64% 1.15% 0.86% 0.76% 0.76% 0.67% BMET 0.37% 0.33% 0.37% 0.38% 2009 2010 2011 2012 2013 2014 2015 2016 2017 Cost of risk 1.13% 17% 17% 18% 17% 19% 19% 22% 23%