Attijariwafa Bank Sa · CSEMA:ATW
Attijariwafa Bank Sa — H1 2018 Earnings Presentation
51 slides from Attijariwafa Bank Sa's earnings presentation, Jun 30, 2018
Slide 1: Financial Communication
Attijariwafa bank As of 30 June 2018 Financial Communication 2018
Slide 2: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2018 IFRS 9 main impacts Regulatory ratios as of June 30, 2018 Attijariwafa bank share price performance 2
Slide 3: Improvement of macroeconomic environment in all African regions in 2018
Improvement of macroeconomic environment in all African regions in 2018 GDP growth in Africa GDP growth in North and Sub-Saharan Africa (%) 2016 2017 2018F North Africa 9.6 WAEMU1 Africa 2.2% 3.6% 4.1% EMCCA 2 North Africa 3.3% 5.0% 5.1% 6.3 6.2 6.6 6.6 West Africa 0.5% 2.5% 3.6% 6.1 6.3 6.4 5.0 WAE
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 : 3.6% GDP growth : 2.4% GDP growth : 2.7% GDP growth : 5.2% GDP growth : 7.0% GDP growth : 6.0% GDP/cap (USD) : 3,435 GDP/cap (USD) : 3,463 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 2016 2017 2018F GDP growth rate of 3.6% in 2018F Real GDP growth 1.1% 4.1% 3.6% Improvement of non-agricultural growth from 2.7% in 2017 to 3.2% in 2018F Agricultural GDP -12.5% 15.4% 5.
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 1H2018 2016 2017 June 2018 Stock exchange market’s trend in 1H2018: MASI 30.5% 6.4% -4.1% - -4.1% Ytd decrease of MASI as of 30 June 2018 MADEX 31.6% 5.8% -4.8% (-10,0% Ytd as of 19 September 2018) Trading volume (MAD bn) 72.7 69.7 24.9
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 +5% +5% +3% 25.95% 26.3% 25.47% 26.66% 26.29% 26.18% 26.01% 26.20% 25.95% 26.72% 26.69% 26.49% 802 842 814 840 587 6.2% 6.5% 6.5% 5.3% 5.0% 3.9% 4.3% 4.1% 5.0% 3.2% 2.0% 3.2%
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% 249 246 255 240 146 24.25% 24.68% 24.23% 24.03% 23.42% 23.31% 23.02% 23.31% 23.48% 23.88% 24.06% 24.29% 9.7% 7.2% 5.0% 6.3% 6.6% 3.5% 4.5% 4.7% 4.5% 4.
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% 7.80% 7.57% 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 1H2018 P1 Significant improvement o
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) exchange rate regime Acceleration of 5.2% in November 2016 economic 4.3% 4.2% 16% growth and 12% 29% 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 2016 2017 2018F GDP growth recovery to 2.4% in 2018F and 2.9% in 2019F Real GDP growth 1.0% 1.9% 2.4% Higher inflation rate in 2017 (5.3%) and 7.0% in 2018F Inflation rate 3.7% 5.3% 7.0% Low level
Slide 13: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2018 IFRS 9 main impacts Regulatory ratios as of June 30, 2018 Attijariwafa bank share price performance 13
Slide 14: H1 2018 consolidated P&L
H1 2018 consolidated P&L Growth Rate (in MAD million) H1 2017 H1 2018 Growth Rate* at a constant scope** and exchange rate Net banking income 10,502 11,294 7.5% 3.8% 1 Net interest income 6,183 6,848 10.8% 5.7% 2 Net fee income 2,245 2,514 12.0% 8.5% Income from market activities 1,927 2,137 10.9% 9
Slide 15: H1 2018 key indicators
H1 2018 key indicators H1 2017 H1 2018 Net interest margin (%)* 4.4% 4.7% Cost income ratio 45.7% 46.4% NPL ratio 7.1% 6.9% Cost of risk 0.61% 0.65% ROA 1.40% 1.41% ROE 14.72% 16.36% (*) Net interest income / net customer loans 15 - 1H2018 Results- Attijariwafa bank
Slide 16: Growth of NBI by business lines
Growth of NBI by business lines X% +/- MAD billion BMET Specialized Financial Companies +3.3% +6.8% +3.8% at a constant 5.4 5.6 exchange rate NBI and scope 1.2 1.3 +7.5% 11.3 10.5 H1 2017 H1 2018 H1 2017 H1 2018 International Retail Banking Insurance +8.9% at a +21.3% constant -17.7% H1 2017 H1 2018
Slide 17: Growth of Net Interest Income by business lines
1 Growth of Net Interest Income by business lines X% +/- MAD billion +2.0% at a BMET Specialized Financial Companies constant exchange rate +2.1% and scope +6.9% +5.7% at a constant 3.5 3.5 exchange rate Net interest income and scope 0.5 0.6 +10.8% 6.8 H1 2017 H1 2018 H1 2017 H1 2018 6.2 Internation
Slide 18: Growth of gross loans by business lines
1 Growth of gross loans by business lines X% +/- MAD billion BMET Specialized Financial Companies +6.2% +3.4% +6.1% at a 192 204 constant exchange rate Gross loans and scope 30 31 +5.5% 314 H1 2017 H1 2018 H1 2017 H1 2018 297 International Retail Banking Insurance +7.4% at a +4.5% constant +1.1% H1
Slide 19: Focus on IRB's loans growth
1 Focus on IRB’s* loans growth X% +/- MAD billion North Africa1 +15.9% at a constant +7.7% exchange rate 29.4 31.6 +7.4% at a constant exchange rate H1 2017 H1 2018 IRB* WAEMU2 +6.0% at a constant +4.5% +6.8% exchange rate 27.8 29.7 71.3 74.5 H1 2017 H1 2018 H1 2017 H1 2018 EMCCA3 -7.5% at a constan
Slide 20: Growth of fees by business lines
2 Growth of fees by business lines X% +/- MAD billion BMET Specialized Financial Companies +7.8% +7.9% +8.5% at a constant exchange 1.08 1.17 Net fee income rate and scope 0.47 0.50 +12.0% 2.51 2.25 H1 2017 H1 2018 H1 2017 H1 2018 International Retail Banking +6.8% at a +14.4% constant exchange rate
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 47.1% 48.6% 43.5% 43.6% +6.7% +7.1% +5.4% at a constant exchange rate, Expenses a constant scope 2,534 2,704 45.7% 46.4% 5,246 512 549 4,796 +9.4% H1 2017 H1 2018 H1 2017 H1 2018 Inter
Slide 22: 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 0.53% 0.54% 0.57% 0.98% +8.4% +76.3% +11.0% at a constant exchange rate and Cost of Risk 553 scope 510 0.61% 0.65% 154 87 +12.5% H1 2017 H1 2018 H1 2017 H1 2018 1,027 913 International Re
Slide 23: 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 65 50 6.8% 7.1% 7.0% 7.0% 6.9% Average 2014 2015 2016 2017 H1 2018 2014 2015 2016 2017 H1 2018 2007-2013 Proactive, conservative and anticipatory risk Coverage ratio* management appr
Slide 24: Customer loans, NPL ratio and coverage ratio by business lines
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) 297.3 313.6 +6.2% +3.4% +4.5% +5.5% Customer Loans 191.7 203.7 71.3 74.5 30.4 31.4 H1 2017 H1 2018 H1 2017 H1 2018 H1
Slide 25: Focus on IRB: loans, NPL ratio and coverage ratio
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 71.3 74.5 +7.7% +6.8% -6.7% +4.5% Customer Loans 29.4 31.6 27.8 29.7 14.1 13.2 H1 2017 H1 2018 H1 2017 H1 2018 H1 2017 H1 2018 H1 2017 H1 20
Slide 26: Growth of NI by business lines
5 Growth of NI by business lines X% +/- MAD million BMET Specialized Financial Companies +0.3% -4.1% +1.6% at a constant 1,494 1,498 Net income exchange rate and scope 368 352 +5.6% 3,446 3,264 H1 2017 H1 2018 H1 2017 H1 2018 International Retail Banking Insurance +11.6% at a +25.9% constant exchang
Slide 27: Growth of NIGS by business lines
6 Growth of NIGS by business lines X% +/- MAD million BMET Specialized Financial Companies +0.3% -2.5% +1.0% at a 1,483 1,487 constant scope Net income group share and exchange rate 289 282 2,630 +6.3% 2,797 H1 2017 H1 2018 H1 2017 H1 2018 International Retail Banking Insurance +6.9% at a H1 2017 H1
Slide 28: Main contributors to net income group share in H1 2018
6 Main contributors to net income group share in H1 2018 in MAD million H1 2018 RAROC (beginning Subsidiaries Weight Growth Rate contributions of period) Attijariwafa bank (Morocco) 1,449 51.8% 2.1% 10.6% -23.9% at a constant exchange Attijariwafa bank Egypt (Egypt) 180 6.5% 63.2%* 25.3% rate and sc
Slide 29: Evolution of Attijariwafa bank Egypt key indicators
Evolution of Attijariwafa bank Egypt key indicators Key figures 2018 outlook H1 18 (% YoY) Improving economic conditions Growth Net loans 11.7% Deposits 37.4% - GDP growth of 5.2% in 2018F and 5.5% in 2019F - High level of inflation rate : ~13.0% in 2018F and 2019F H1 18 (% YoY) - Improvement of For
Slide 30: Evolution of Attijari bank Tunisie key indicators
Evolution of Attijari bank Tunisie key indicators xx% in MAD Key figures (yy%) at a constant exchange rate 2018 outlook CAGR 14-17 H1 18 (% YoY) Challenging economic conditions Growth Net loans 3.6% (12.5%) 5.8% (16.9%) Deposits 1.3% (9.9%) +3.0% (13.9%) - GDP growth of 2.4% in 2018F and 2.9% in 201
Slide 31: Evolution of CBAO key indicators
Evolution of CBAO key indicators Key figures 2018 outlook CAGR 14-17 H1 18 (% YoY) Positive economic outlook Growth Net loans 11.3% 8.5% - Confirmation in 2018 and 2019 of the past Deposits 9.2% 11.4% years strong economic growth (7.0% in 2018F and 2019F ) H1 18 CAGR 14-17 (%YoY) - Low inflation at
Slide 32: Evolution of SIB key indicators
Evolution of SIB key indicators Key figures 2018 outlook CAGR 14-17 H1 18 (% YoY) Positive outlook of the economy Growth Net loans 21.8% 13.0% - High GDP growth of ~7.4% per year between Deposits 19.0% 9.7% 2017 and 2019 - Low inflation rate of 1.7% in 2018F and 2.0% H1 18 (% CAGR 14-17 in 2019F YoY
Slide 33: RoA by business lines
8 RoA by business lines X% +/- BMET Specialized Financial Companies -0.07pt 2.30% -0.11pt 2.19% RoA 1.03% 0.96% +0.01 pt H1 2017 H1 2018 H1 2017 H1 2018 1.40% 1.41% International Retail Banking Insurance +0.57pt -0.59pt H1 2017 H1 2018 2.40% 2.21% 1.83% 1.62% H1 2017 H1 2018 H1 2017 H1 2018 33 - 1H
Slide 34: RoA by business line between 2008 and H1 2018
8 RoA by business line between 2008 and H1 2018 xx% Contribution to total assets (end of period) 67% 67% 66% 68% 67% 66% 64% 62% 61% 64% 1.3% 1.4% 1.2% 1.1% 0.9% 1.0% 1.0% 1.0% 1.0% 1.0% BMET 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1 2018 18% 18% 19% 18% 20% 20% 22% 22% 24% 22% 2.4% 1.7% 1.6%
Slide 35: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2018 IFRS 9 main impacts Regulatory ratios as of June 30, 2018 Attijariwafa bank share price performance 35 - 1H 2018 Results- Attijariwafa bank
Slide 36: 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 37: 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 38: Impact 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 39: Impact 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
Slide 40: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2018 IFRS 9 main impacts Regulatory ratios as of June 30, 2018 Attijariwafa bank share price performance 40 - 1H 2018 Results- Attijariwafa bank
Slide 41: Regulatory ratios
Regulatory ratios Capital Adequacy ratio Tier 1 CAR Consolidated basis 12.7% 12.6% 12.5% 13.3% 12.4% 12.5% Minimum requirements: 12% 9.9% 10.1% 10.1% 10.8% 9.7% 9.9% Minimum requirements Tier 1 : 9% (CET: 8% and AT1: 1%) Capital adequacy 2013 2014 2015 2016 2017 2018F Capital Adequacy ratio Tier 1 C
Slide 42: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2018 IFRS 9 main impacts Regulatory ratios as of June 30, 2018 Attijariwafa bank share price performance 42 - 1H 2018 Results- Attijariwafa bank
Slide 43: Attijariwafa bank share price performance
Attijariwafa bank share price performance Attijariwafa bank vs MASI from 12-31-11 to 09-19-18 Share price as of 30 June 2018: MAD 470 Share price as of September 19, 2018: MAD 448 Largest market capitalization in the banking sector and 2nd largest in Morocco: MAD 95.7 billion as of June 30, 2018 Att
Slide 44: Attijariwafa bank market indicators
Attijariwafa bank market indicators Attijariwafa bank 12/31/2015 12/31/2016 12/31/2017 09/19/2018 Share price 338 413 484 448 Year High 382 420 500 514 Year Low 325 327 396 440 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 45: Back up
Back up 45 - 1H 2018 Results- Attijariwafa bank
Slide 46: Main contributors to loans in H1 2018
1 Main contributors to loans in H1 2018 in MAD million Subsidiaries H1 2018 contributions Weight Growth Rate Attijariwafa bank (Morocco) 63.3% 4.8% 198,558 +16.7% at a Attijari bank Tunisie (Tunisia) 7.3% 5.8% constant 22,816 exchange rate Wafasalaf (Morocco) 5.1% 9.3% 16,068 Wafabail (Morocco) 4.0%
Slide 47: Main contributors to net banking income in H1 2018
Main contributors to net banking income in H1 2018 in MAD million Subsidiaries H1 2018 Contributions Weight Growth Rate Attijariwafa bank (Morocco) 5,154 45.6% 3.3% +22.3% at a constant Attijari bank Tunisie (Tunisia) 798 7.1% 9.7% exchange rate Wafa Assurance (Morocco) 751 6.7% -17.7% SIB (Ivory Co
Slide 48: BMET: Net interest margin by business line
Net interest margin by business line between 2008 and H1 2018 xx% Contribution to net customer loans (end of period) 72% 72% 72% 72% 71% 70% 66% 66% 65% 66% 3.8% 3.9% 3.8% 3.6% 3.7% 3.7% 4.0% 3.8% 3.8% 3.7% BMET 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1 2018 Net interest margin/ customer loans
Slide 49: BMET: Net fee income by business line
Net fee income by business line between 2008 and H1 2018 xx% Contribution to net banking income 58% 56% 54% 55% 54% 56% 54% 53% 50% 48% 21.0% 20.7% 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 H1 2018 Net fee income/ Net banking income 16% 22% 24%
Slide 50: Cost-Income ratio by business line
Cost-Income ratio by business line Between 2008 and H1 2018 xx% Contribution to net banking income 58% 56% 54% 55% 54% 56% 54% 53% 50% 48% 41.5%41.9% 44.1% 43.1% 44.5% 42.0% 46.7% 47.4%47.5% 48.6% BMET 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1 2018 16% 22% 24% 25% 26% 26% 28% 29% 33% 34% 58.2%
Slide 51: Cost of risk by business line
Cost of risk by business line between 2008 and H1 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 0,54% 0.37% 0.33% 0.37%0.38% 2009 2010 2011 2012 2013 2014 2015 2016 2017 H1 2018 Cost of risk 1.13% 17% 17% 18% 1