Attijariwafa Bank Sa · CSEMA:ATW
Attijariwafa Bank Sa — H1 2016 Earnings Presentation
41 slides from Attijariwafa Bank Sa's earnings presentation, June 2016
Slide 1: Financial Communication
Attijariwafa bank As of 30 June 2016 Financial Communication 2016
Slide 2: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2016 Regulatory ratios as of June 30, 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 2016F 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% 6.5 6.4 6.4 6.5 6.6 5.9 Incl. WAEMU1 6.4% 6.5% 6.6%
Slide 4: Macroeconomic environment in Morocco in 2016
Macroeconomic environment in Morocco in 2016 Main economic indicators Economic growth 2014 2015 2016F GDP growth rate of 1.5% in 2016F mainly due to a lower cereal harvest (33.5 million quintals vs 115 million of Real GDP 2.6% 4.5% 1.5% quintals in 2015) Agricultural GDP -2.3% 13.0% -9.7% - Non-agri
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 2016 to 2.25% Increase of mandatory reserves requirements from 2%
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 19 August Upward trend of the market in 2016: 2014 2015 2016 - 11.5% YoY increase of MASI as of 19 August MASI 5.6% -7.2% 11.5% 2016 MADEX 5.7% -7.5% 12.5% - 11.3% YoY growth in market capita
Slide 7: Macroeconomic environment in Africa in 2016
Macroeconomic environment in Africa in 2016 2016F figures Morocco Tunisia Mauritania Senegal Burkina-Faso North Africa GDP growth : 1.5% GDP growth : 2.0% GDP growth : 4.1% GDP growth : 6.6% GDP growth : 5.0% GDP/cap (USD) : 3,196 GDP/cap (USD) : 3,919 GDP/cap (USD) : 1,197 GDP/cap (USD) : 946 GDP/c
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 2016F 2017F GDP growth recovery to 2.0% in 2016F and 3.0% in 2016F Real GDP growth 0.8% 2.0% 3.0% 4.0% inflation rate in 2016F (vs. 4.9% in 2015) Inflation rate 4.9% 4.0% 3.9% TND/MAD down 4.9%
Slide 9: Moroccan banking sector
AWB market Moroccan banking sector shares in Morocco Focus on loans and deposits growth between 2009 and June 2016 YoY growth X% CAGR X% +/- Deposits (MAD billion) Deposits: YoY growth +4% +6% +5% 25.93% 25.95% 26.53% 25.47% 26.66% 26.29% 26.18% 26.01% 26.20% 769 743 782 722 587 6.2% 6.5% 6.5% 5.3%
Slide 10: Moroccan banking sector
AWB market Moroccan banking sector shares in Morocco Focus on loans growth between 2009 and June 2016 YoY growth X% CAGR X% +/- Retail loans (1) (MAD billion) Retail loans: YoY growth +8% +5% +5% 229 225 236 219 146 24.73% 24.25% 24.68% 24.23% 24.03% 23.42% 23.31% 23.02% 23.31% 11.2% 9.7% 7.2% 5.0%
Slide 11: Focus on NPL ratio in Morocco (2/2)
Focus on NPL ratio in Morocco (2/2) +x bn/sem in MAD bn per semester NPLs in Morocco (MAD bn) In MAD bn +2.4 +0.2 +1.6 +0.5 +3.5 +5.2 +3.6 +4.0 +3.6 +2.4 +1.5 55.3 57.7 59.2 47.7 51.7 44.1 34.9 35.4 38.9 30.8 33.2 33.4 +1.5 bn/sem +3.8 bn/sem +1,2 bn/sem Dec-10 June-11 Dec-11 June-12 Dec-12 June-13
Slide 12: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2016 Regulatory ratios as of June 30, 2016 Attijariwafa bank share price performance 12
Slide 13: Attijariwafa bank Group key figures in June 2016
Attijariwafa bank Group key figures in June 2016* BMET: +2.0% SFS: +5.4% IRB: +9.4% Total assets: MAD 416 bn NBI: MAD 10.1 bn 17,367 employees +3.1% +3.5% +2,3% Total savings**: MAD 394 bn Operating income: MAD 4.4 bn 3,844 branches +5.1% +3.8% +13.9% Total loans: MAD 264 bn Net consolidated MAD 3.0
Slide 14: IFRS consolidated financial statements in June 2016
IFRS consolidated financial statements in June 2016 Net banking income (in MAD billion) June 2016 Weight Increase of consolidated NBI by 3.5% benefiting from International Retail Banking’s NBI (+9.4%) and Specialized NBI 10.1 100.0% 3.5% Financial Companies (+4.4%) 1 Net interest income 5.8 57.1% 0.
Slide 15: Growth of NBI by business lines
Growth of NBI by business lines X% +/- MAD billion BMET Specialized Financial Companies +1.4% +4.4% 5.4 5.5 NBI 1.1 1.1 +3.5% 9.8 10.1 June-15 June-16 June-15 June-16 International Retail Banking Insurance +10.8% at a +9.4% constant -4.5% June-15 June-16 exchange rate 2.6 2.9 0.9 0.8 June-15 June-16
Slide 16: Growth of NIM by business lines
1 Growth of NIM by business lines X% +/- MAD billion BMET Specialized Financial Companies -2.3% +2.7% 3.5 3.4 Net interest income 0.52 0.53 +0.2% 5.8 5.8 June-15 June-16 June-15 June-16 +2.0% +5.4% +5.0% NA International Retail Banking Insurance +8.6% at a +7.3% constant +7.9% June-15 June-16 exchan
Slide 17: Main contributors to loans in 2016
1 Main contributors to loans in 2016 in MAD million Subsidiaries 1H2016 contributions Weight Growth Rate Attijariwafa bank (Morocco) 172,295 65.2% 2.5% +14.0% at a Attijari bank Tunisie (Tunisia) 20,434 7.7% 1.8% constant exchange rate Wafasalaf (Morocco) 12,088 4.6% 11.0% Wafabail (Morocco) 11,558
Slide 18: Loan growth in Morocco Focus on 1H16
X% CAGR (annualized growth 1 Loan growth in Morocco between Dec-15 and June-16) Focus on 1H16 Market share – Total loans MAD billion +0.9pt 24.86% 25.74% • Retail loans : +8.5% • Corporate loans : +10.5% Loans Dec-15 June-16 +9.7% Market share – Retail loans 190 199 +0.3pt 23.02% 23.31% Dec-15 June-
Slide 19: Growth of fees by business lines
2 Growth of fees by business lines X% +/- MAD billion BMET Specialized Financial Companies +13.9% +6.7% 0.89 1.01 Net fee income 0.42 0.45 +11.6% June-15 June-16 June-15 June-16 2.17 1.94 International Retail Banking +9.9% at a +8.6% constant exchange rate June-15 June-16 0.88 0.95 June-15 June-16 T
Slide 20: IFRS consolidated financial statements in June 2016
IFRS consolidated financial statements in June 2016 X% +/- Operating income Cost-Income ratio (in MAD billion) June 2016 (%) 44.5% +0.8pt 45.3% 3 General operating expenses* 4.6 +5.4% Gross operating income 5.5 +1.9% 4 Cost of risk 1.1 -5.0% Operating income 4.4 +3.8% (*) including depreciations, am
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 43.4% 45.1% 42.1% 42.5% +5.4% +5.2% Expenses 2,346 2,472 44.5% 45.3% 461 485 +5.4% 4,341 4,577 June-15 June-16 June-15 June-16 International Retail Banking Insurance 56.1% 54.5% 35.9%
Slide 22: NPLs, coverage and cost of risk
4 IFRS consolidated financial statements NPLs, coverage and cost of risk NPL ratio Cost of risk 7.1% 7.1% 7.1% 113 bps 6.8% 83 bps 79 bps 50 bps Dec-14 June-15 Dec-15 June-16 Average 2007- 2014 2015 June-16 2013 Coverage ratio Proactive, conservative and anticipatory risk management approach: +0.3 p
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) 173 +2.0% 176 +5.4% +9.4% 254 +3.8% 264 Customer Loans 52 57 26 28 June-15 June-16 June-15 June-16 June-15 June-16 Jun
Slide 24: 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 0.82% 0.93% 0.66% 0.61% +15.6% -3.4% Cost of Risk 856 740 0.87% 0.79% 92 88 -5.0% 1,163 1,104 June-15 June-16 June-15 June-16 International Retail Banking Insurance 0.98% 0.36% 2.77% 2.39% J
Slide 25: IFRS consolidated financial statements in June 2016
IFRS consolidated financial statements in June 2016 Net Income Group Share (In MAD billion) June-2016 (%)* Net income up +7.1% 6 Net Income 3.0 +7.1% Net income group share up +7.9% 7 Net Income Group Share 2.5 +7.9% Main scope changes: 8 RoE 15.5% +0.9 pt - SIB (Ivory Coast) : increase of the equit
Slide 26: Growth of NI by business lines
6 Growth of NI by business lines X% +/- MAD million BMET Specialized Financial Companies -3.6% +5.1% 1 389 1 339 Net income 340 357 2 956 2 760 +7.1% June-15 June-16 June-15 June-16 International Retail Banking Insurance +36.9% at a +34.9% constant +0.7% June-15 June-16 exchange rate 876 649 382 384
Slide 27: Main contributors to net banking income in June 2016
6 Main contributors to net banking income in June 2016 in MAD million Subsidiaries 1H2016 Contributions Weight Growth Rate Attijariwafa bank (Morocco) 5,057 48.9% 0.3% Wafa Assurance (Morocco) 838 8.1% -4.5% Attijari bank Tunisie (Tunisia) 761 7.4% 4.7% Wafasalaf (Morocco) 491 4.7% 2.1% CBAO (Senega
Slide 28: Growth of NIGS by business lines
7 Growth of NIGS by business lines X% +/- MAD million BMET Specialized Financial Companies -3.5% +4.9% 1 378 1 329 Net income group share 260 273 +7.9% 2 495 June-15 June-16 June-15 June-16 2 312 International Retail Banking Insurance +39.4% at a +58.6% constant scope +0.7% June-15 June-16 and const
Slide 29: Main contributors to net income group share in June 2016
7 Main contributors to net income group share in June 2016 in MAD million Subsidiaries 1H2016 contributions Weight Growth Rate Attijariwafa bank (Morocco) 1,266 50.7% -6.7% Wafa Assurance (Morocco) 305 12.2% +0.7% Attijari bank Tunisie (Tunisia) 143 5.7% 13.2% CBAO (Senegal) 117 4.7% NA SIB (Ivory-C
Slide 30: RoA by business lines
8 RoA by business lines X% +/- BMET Specialized Financial Companies -0.1pt - 2.3% 2.3% 1.1% 1.0% RoA - 1.4% 1.4% June-15 June-16 June-15 June-16 International Retail Banking Insurance +0.4pt -0.2pt June-15 June-16 2.5% 2.3% 1.9% 1.5% June-15 June-16 June-15 June-16 30 - Results June 2016- Attijariwa
Slide 31: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2016 Regulatory ratios as of June 30, 2016 Attijariwafa bank share price performance 31 - Results June 2016- Attijariwafa bank
Slide 32: Regulatory ratios in June 2016
Regulatory ratios in June 2016 Capital Adequacy ratio Tier 1 CAR Consolidated basis 12.7% 12.6% 12.5% 12.5% Minimum requirements: 12% 9.9% 10.1% 10.1% 10.1% Minimum requirements Tier 1 : 9% Capital adequacy 2013 2014 2015 June-16F Capital Adequacy ratio Tier 1 CAR 12.8% 12.7% 12.4% Parent company 12
Slide 33: Agenda
Agenda Overview of the economic environment IFRS consolidated financial statements as of June 30, 2016 Regulatory ratios as of June 30, 2016 Attijariwafa bank share price performance 33 - Results June 2016- Attijariwafa bank
Slide 34: Attijariwafa bank share price performance
Attijariwafa bank share price performance Attijariwafa bank vs MASI from 12-31-10 to 09-19-16 Base 100 MASI ATTIJARIWAFA BANK Dec 10 Share price as of 30 June 2016: 120 2011 MAD 344 AWB : -14.0% MASI : -12.9% 2013 Share price as of 19 September 2014 105 2012 AWB : -2.6% 2016: 357.8 DH MASI: -2.6% AW
Slide 35: Attijariwafa bank market indicators
Attijariwafa bank market indicators Attijariwafa bank 12/31/2014 12/31/2015 06/30/2016 Share price 344 338 344 Year High 349 345 362 Year Low 303.3 325 327 P/B 1.97x 1.86x 1.88x P/E (*) 16.08x 15.28x 14.03x DY 2.91% 3.26% - Number of shares 203,527,226 203,527,226 203,527,226 Market capitalization(*
Slide 36: Back up
Back up 36 - Results June 2016- Attijariwafa bank
Slide 37: RoA by business line between 2008 and June 2016
RoA by business line between 2008 and June 2016 xx% Contribution to total assets (end of period) 72% 67% 67% 66% 68% 67% 66% 64% 63% 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 June-16 13% 18% 18% 19% 18% 20% 20% 22% 22% 1.7% 1.6% 1.9% 1.9% 1.6% 1.4% 1.5
Slide 38: Net interest margin by business line between 2008 and June 2016
Net interest margin by business line between 2008 and June 2016 xx% Contribution to customer loans (end of period) 74% 72% 72% 72% 72% 71% 70% 66% 67% 4.2% 3.8% 3.9% 3.8% 3.6% 3.7% 3.7% 4.0% 3.9% BMET 2008 2009 2010 2011 2012 2013 2014 2015 June-16 Net interest margin/ customer loans (end of period)
Slide 39: Net fee income by business line between 2008 and June 2016
Net fee income by business line between 2008 and June 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% 16.2% 18.0% 18.4% BMET 2008 2009 2010 2011 2012 2013 2014 2015 June-16 Net fee income/ Net banking income 15% 16% 22% 24% 25% 26%
Slide 40: Cost-Income ratio by business line
Cost-Income ratio by business line Between 2008 and June 2016 xx% Contribution to net banking income 60% 58% 56% 54% 55% 54% 56% 54% 53% 47.0% 41.5% 41.9% 44.1% 43.1% 44.5% 42.0% 46.7% 45.1% BMET 2008 2009 2010 2011 2012 2013 2014 2015 June-16 15% 16% 22% 24% 25% 26% 26% 28% 28% 53.7% 58.2% 60.1% 61
Slide 41: Cost of risk by business line between 2008 and June 2016
Cost of risk by business line between 2008 and June 2016 xx% Contribution to gross customer loans (end of period) 73% 70% 71% 71% 71% 70% 69% 66% 66% 1.15% 0.86% 0.93% 0.76% BMET 0.37% 0.33% 0.37% 0.38% 0.17% 2008 2009 2010 2011 2012 2013 2014 2015 June-16 Cost of risk 1.13% 14% 17% 17% 18% 17% 19%