Attijariwafa Bank Sa · CSEMA:ATW
Attijariwafa Bank Sa — FY2023 Earnings Presentation
41 slides from Attijariwafa Bank Sa's earnings presentation, 2024
Slide 1: Financial Communication
Attijariwafa bank December 2023 Financial Communication 2024
Slide 2: Agenda
Agenda Overview of macroeconomic environment in AWB’s countries of presence IFRS consolidated financial statements as of Dec 31st, 2023 Liquidity, Capital Adequacy Ratio 2
Slide 3: Macroeconomic environment in Morocco: Outlook and main indicators
Macroeconomic environment in Morocco Outlook and main indicators Main indicators 2019 2020 2021 2022 2023 2024F YoY GDP growth (%) 2.9 -7.2 8.0 1.3 2.9 3.2 Non-agricultural GDP (%) 4.0 -6.9 6.6 3.1 2.7 3.2 Agricultural GDP (%) -5.0 -8.1 17.8 -12.7 6.7 2.7 YoY Domestic consumption Growth (%) 2.2 -5.6
Slide 4: Strong resilience of foreign currency reserves
Strong resilience of foreign currency reserves Change (%) Change (%) In MAD bn 2019 2020 2021 2022 2023 21/22 22/23 Imports 527.5 438.3 540.0 749.4 +38.8% 748.6 -0.1% Imports excl. Energy 451.2 388.4 464.2 596.2 +28.4% 626.6 +5.1% Exports 344.8 318.7 423.6 596.0 +40.7% 627.8 +5.3% Exports excl. Ener
Slide 5: New and traditional export-oriented sectors
New and traditional export-oriented sectors % CAGR 2013-2021 % Change 2021-2022 % Change 2022-2023 (In MAD bn) 2013 2021 2022 2023 +13% +33% +27% New export-oriented sectors 111 142 Automotive 31 84 2013 2021 2022 2023 +8% +38% +3% Aeronautics 8 15 21 22 2013 2021 2022 2023 +8% +40% +29% Electronic
Slide 6: Exchange rates trend in 2017 and 2023
Exchange rates trend in 2017 and 2023 January 2018 : Implementation of a flexible exchange rate regime with an adjustable horizontal band (+/- 2.5%) within which MAD can fluctuate freely based on the interbank market supply and demand law March 2020: Widening of the fluctuation band of the dirha
Slide 7: Budget deficit of 5% between 2022 and 2023
Budget deficit of 5% between 2022 and 2023 • +5.4% of tax • +41.1% of non-tax • +24.2% of public 2023/2022 revenues revenues investment 2024/2023F • +4.2% of tax • +20.5% of non-tax • +11.4% of public (Law of Finance 2024) revenues revenues investment Budget deficit from 2011 to 2024 (in % GDP) -3,6
Slide 8: Macroeconomic environment in Morocco: Inflation
Macroeconomic environment in Morocco Outlook and main indicators Inflation annual average (%) 7,5 7 Inflation YoY (%) 7,7 8,1 10,1 6,6 5,9 5,5 4,9 3,1 3,6 2,3 6,5 6,1 Jan-22 Feb-22 Mar-22 Apr-22 May-22 June-22 Aug-22 Sept-22 Nov-222 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Aug-23 Sept-23 Nov
Slide 9: Macroeconomic environment in Morocco: Inflation and CPI
Macroeconomic environment in Morocco Outlook and main indicators Inflation YoY (%) 10,1 8,2 7,8 8,3 8,3 8,9 7,2 7,1 5,9 5,5 4,9 5,0 4,9 4,3 3,1 3,6 3,4 2,3 Consumer Price Index 119 118 118 119 119 118 118 117,5 117 117 117 117 114 114 115 113 114 112 112 110 110 111 108 106 106 9 HCP Attijariwafa ba
Slide 10: Sovereign bond yields curve trend between 2018 and 2023
Sovereign bond yields curve trend between 2018 and 2023 -75 bps in key interest rate in 2020 + 150 bps in key interest rate to 3.00% (between September and March 2023) Mandatory cash reserve at 0% of deposits since Covid-19 crisis in 2020 vs. 2% before 2018 2019 Mar-20 June-20 2020 June-21 202
Slide 11: Moroccan banking sector YoY growth: deposits and loans
YoY growth Moroccan banking sector X% CAGR YoY growth X% Annual change Deposits (MAD billion) Deposits: YoY growth CAGR 13-17 +6% CAGR 17-19 +3% +5% +5% +7% +3% +5% +3% +5% +5% +7% +3% 1 053 1 126 1 165 925 950 1 000 718 2013 2018 2019 2020 2021 2022 2023 CAGR 13-17 +7% CAGR 17-19 +4% +10% +8% +9% +
Slide 12: Moroccan banking sector YoY growth: retail and corporate loans
YoY growth Moroccan banking sector X% CAGR YoY growth X% Annual change Retail loans (1) (MAD billion) Retail loans: YoY growth CAGR 13-16 +5% CAGR 16-19 +4% +0.2% +3% +2% +0.8% +5% +3% +0.2% +2.8% +2.2% +0.8% 271 272 280 286 288 263 207 2013 2018 2019 2020 2021 2022 2023 Corporate loans(2) (MAD bill
Slide 13: Moroccan banking sector YoY growth: working capital and investment loans
YoY growth Moroccan banking sector X% CAGR YoY growth X% Annual change Working capital loans (MAD billion) Working capital loans: YoY growth CAGR 13-16 -1% CAGR 16-19 +3% +8% +11% +17% -0.1% -0.2% +7% +8% +11% +17% - 255 255 218 183 197 172 170 2013 2018 2019 2020 2021 2022 2023 Investment loans (MA
Slide 14: Attijariwafa bank loans and deposits market share
Moroccan banking sector Attijariwafa bank’ loans and deposits market share YoY growth of loans (%) AWB’ loans market share 7,7% 5,9% 26,59% +37bps 26,97% 7,5% Loans 2,4% 4,8% Banking sector 1,6% AWB 0,2% 2,0% 2020 2021 2022 2023 2022 2023 YoY growth of free-interest deposits (%) AWB’ deposits market
Slide 15: Moroccan banking sector: New loan yields
Moroccan banking sector New loan yields (in %) 2022 2023 Change in bps New loans yields 4.33 5.25 +92 Loans for individuals 5.36 5.86 +51 Consumer loans 6.40 7.16 +76 Corporate loans 4.09 5.21 +111 SMEs & VSMEs 4.91 5.68 +76 Large corporate 3.88 5.03 +115 15 Attijariwafa bank presentation – FY 2023
Slide 16: Main drivers of loan growth between 2024-2030
Main drivers of loan growth between 2024-2030 Total investment of MAD 900-1,300 bn African & World cup Construction of a large stadium in Benslimane between 2025-2028 organization Modernization of the 6 existing stadiums between 2024-2028 2025-2030 Reinforcement of the transport, accommodation
Slide 17: Macroeconomic environment in AWB's main countries of presence
Macroeconomic environment in AWB’s main countries of presence Net international reserves Real GDP growth (%) Key Interest rate Inflation rate (%) (USD Billion) Egypt 21,75% 7 6 6 6,7 16,75% 33,7 25,9 3,8 8,75% 8,75% 21,3 41 34 35 3,3 3,0 5,9 2021 2022 2023 2024 F 2020 2021 2022 2023 2021 2022 2023 2
Slide 18: Monetary policy in AWB's main regions of presence
Monetary policy in AWB’s main regions of presence Monetary policy Change Main countries between of presence 2020-2021 2022 2023 2022-2023 -75 bps to 1.50% +100 bps to 2.50% +50pbs to 3.00% Morocco • -25bps in March 2020 • +50 bps in September • +50bps in March • -50 bps in June 2020 • +50 bps in Dec
Slide 19: Agenda
Agenda Overview of macroeconomic environment in AWB’s countries of presence IFRS consolidated financial statements as of Dec 31st, 2023 Liquidity, Capital Adequacy Ratio 19
Slide 20: 2023 consolidated P&L
2023 consolidated P&L Growth at constant (in MAD million) FY 2022* FY 2023 Growth Rate exchange rate Net banking income 25,935 29,943 +15.5% +19.0% Net interest income 16,319 18,433 +13.0% +17.5% Net fee income 5,776 6,421 +11.2% +13.3% Income from market activities 2,659 4,178 +57.1% +59.0% Others
Slide 21: 2023 key financial indicators
2023 key financial indicators FY 2019 FY 2020 FY 2021 FY 2022* FY 2023 461 473 469 439 469 Net interest margin (bps)1 (463 **) (483 **) Net interest margin/Total assets (bps) 280 278 271 261 280 47.8% 46.5%*** 46.3% 42.9% 40.7% Cost income ratio (39.4%****) NPL ratio 6.6% 7.8% 8.1% 7.0% 7.2% Cost of
Slide 22: NBI by business line
X% +/- NBI by business line X% Change at constant exchange rate BMET Specialized Financial Companies MAD million +21.9% +4.6% 14,930 12,250 NBI 2,723 2,849 +15.5% 2022 2023 2022 2023 +19.0% 29,943 • North Africa : 7% +35% • EMCCA : 15% • WAEMU : 16% 25,935 International Retail Banking Insurance 2022
Slide 23: Net Interest Income by business line
Net Interest Income by business line X% +/- X% Net interest income / Loans MAD million BMET Specialized Financial Companies +12.9% +13.6% 8,669 9,792 Net interest income 1,129 1,282 +13.0% 2022 2023 2022 2023 18,433 3.6% 3.8% 3.0% 3.3% 16,319 International Retail Banking 2022 * 2023 +12.5% 4.4% 4.7%
Slide 24: Net interest margin by business line: BMET
Net interest margin by business line between 2012 and 2023 72% 71% 70% 66% 66% 65% 67% 67% 66% 65% 65% 65% xx% Contribution to net customer loans (end of period) BMET Net interest margin/ customer loans 18% 17% 19% 19% 22% 23% 24% 23% 23% 23% 24% 25% 25% 4.6%** 4.8%** IRBIRB * 10% 10% 10% 10% 11% 11
Slide 25: Fees by business line
X% +/- Fees by business line X% Change at constant exchange rate MAD million BMET Specialized Financial Companies +9.7% +6.5% Net fee income 3,161 3,469 1,027 1,094 +11.2% 6,421 2022 2023 2022 2023 5,776 International Retail Banking 2022 * 2023 +10.9% +15.9% 2,545 2,822 2022 2023 (*) Amounts for 202
Slide 26: Income from market activities by business line
Income from market activities by business line X% +/- MAD million Income from Market activities +57.1% 4,178 2,659 2022 * 2023 BMET International Retail Banking +78.0% +3.1% 3,416 1,919 756 779 2022 2023 2022 2023 (*) Amounts for 2022 have been restated following the first retrospective application
Slide 27: A rigorous cost control based on an ambitious saving plan
Cost-Income ratio excluding the contribution A rigorous cost control based on an X% to COVID-19 special fund in 2020 ambitious saving plan…. X% Cost-Income ratio excluding the contribution to AL-Haouz earthquake fund MAD million Cost-Income ratio on a consolidated basis: Excl. the contribution to Al
Slide 28: Customer Loans
Growth of customer loans and NPL ratio by business line X% Annual change X% Contribution to net customer loans (end of period) X% Change at constant exchange rate + + = Specialized Financial International Retail BMET AWB (Consolidated loans) Companies Banking (MAD bn) 65% 10% 25% 100% +3.8% +2.7% +6
Slide 29: Customer Loans: Focus on IRB
Growth of customer loans and NPL ratio by X% Annual change business line: Focus on IRB* X% Change at constant rates + + = International Retail North Africa(1) WAEMU(2) EMCCA(3) (MAD bn) Banking +7.7% +6.5% +5.6% +1.1% +6.7% +4.2% +17.8% +6.9% -9.5% +5.5% +26.0% +16.3% +4.7% +5.4% +13.3% +5.8% Custom
Slide 30: Credit risk exposure, staging & coverage
Credit risk exposure*, staging & coverage % Coverage ratio % Annual change MAD billion ; figures as of Dec 2023 Bank in Morocco Exposure Group Exposure at Default at Default IRB** Exposure at Default 0.6% 0.6% 0.4% 0.4% 1.5% 1.4% 529 568 Stage 1 +7.4% 373 +10.1% 411 +2.1% 109 107 2022 2023 2022 2023
Slide 31: AWB's African sovereign exposures
AWB’s African sovereign exposures % Coverage ratio Exposures, credit expected loss and coverage % Change between 2022-2023 (MAD billion) 2.0% -7.7% 4.6% 35 32 0,7 1,5 2022 2023 EAD ECL Note : Insurance sovereign exposures are not included in the charts above. African Sovereign exposures held by insu
Slide 32: Cost of risk by business line
Cost of risk by business line between 2012 and 2023 xx% Contribution to net customer loans (end of period) 72% 71% 70% 66% 66% 65% 67% 67% 66% 65% 65% 65% BMET +20 bps Average 12-19: 0.66% * Cost of risk 18% 17% 19% 19% 22% 23% 24% 23% 23% 23% 24% 25% 25% +25 bps IRB Average +34 bps 12-19: 0.70% Ave
Slide 33: NIGS by business line
X% Annual change NIGS by business line x% Return on average assets MAD million BMET Specialized Financial Companies 1.11% 0.46% 0.84% 0.81% 1.07% 1.73% 0.28% 1.84% 1.80% 1.52% -57.1% +95.4% -0.6% + 39.0% -66.8% NA +1.6% -7.5% Net income group share 4,049 3,495 2,929 2,912 1.33% 0.67% 1.06% 1.24% 1.4
Slide 34: RoaA by business line between 2012 and 2023
RoaA by business line between 2012 and 2023 xx% Contribution to total assets (end of period) 68% 67% 66% 64% 62% 61% 62% 60% 61% 60% 59% 59% BMET ** * 18% 20% 20% 22% 22% 24% 23% 24% 22% 25% 26% 26% RoaA IRB * 8% 7% 7% 7% 7% 7% 7% 8% 7% 7% 7% 7% * SFS ** * 7% 6% 6% 7% 8% 8% 8% 8% 8% 9% 8% 8% INSURAN
Slide 35: RoaA below normative level due to a still non-normative CoR
RoaA below normative level due to a still non-normative CoR Net banking income / Total average assets X% +/- between 2019 and 2023 Gross Operating Income / Total average assets 4,50% 4,34% 4,19% 4,26% 4,66% 2,35% 2,11% 2,25% 2,43% 2,76% RoaA* 2019 2020 2021 2022 ** 2023 Expenses / Total average asse
Slide 36: IRB main figures
IRB main figures Growth at a constant (in MAD million) 2022 2023 Growth Rate rate Net banking income 9,791 10,986 +12.2% +21.7% General operating expenses -4,422 -4,694 +6.1% +13.5% Gross operating income 5,369 6,292 +17.2% +28.5% Cost of risk -830 -1,098 +32.3% +85.9% Net income 3,181 3,692 +16.1%
Slide 37: Agenda
Agenda Overview of macroeconomic environment in AWB’s countries of presence IFRS consolidated financial statements as of Dec 31st, 2023 Liquidity, Capital Adequacy Ratio 37 Attijariwafa bank presentation – FY 2023 Results
Slide 38: Solid liquidity position
Solid liquidity position Liquid and free assets (HQLA) in MAD billion Bank in Morocco 74 78 74 69 67 67 57 43 43 Dec 31, 2018 Dec 31, 2019 Dec 31, 2020 June 30, 2021 Dec 31, 2021 June 30, 2022 Dec 31, 2022 June 30,2023 Dec 31, 2023 104% 127% 202% 175% 184% 169% 163% 137% 137% Consolidated basis 113
Slide 39: Solid capital position
Solid capital position Tier 1 X% Buffer above Tier 1 regulatory minimum Capital Adequacy ratio Consolidated basis 11.3% 11.2% 11.5% 11.5% 10.2% 10.3% 10.7% +250bps +120bps Minimum requirements Capital adequacy Tier 1 : 9% 2018 2019 2020 2021 2022 2023 2024 X% Buffer above Tier 1 regulatory minimum T
Slide 40: A solid, resilient and diversified business model (1/2)
A solid, resilient and diversified business model (1/2) Main indicators 2023 vs 2022 2023 vs 2019 Net banking +15.5% Satisfactory growth of the top line NIM (%)* +30 bps +8 bps and resilient margins Fees +11.2% Cost-income ratio Group -2 pts -7 pts Cost-income ratio BMET -5 pts -6 pts Strong ope
Slide 41: A solid, resilient and diversified business model (2/2)
A solid, resilient and diversified business model (2/2) Main indicators Bank in Morocco LCR 137% (+37 pts over minimum) CAR 15.07% Tier1 13.63% Buffer above Tier1 min +463 bps (x2 since 2018) Sound liquidity and capital position On a consolidated basis LCR 151% (+51 pts over minimum) CAR 12.50% Ti