Attijariwafa Bank Sa · CSEMA:ATW
Attijariwafa Bank Sa — H1 2023 Earnings Presentation
42 slides from Attijariwafa Bank Sa's earnings presentation, June 2023
Slide 1: Attijariwafa bank Financial Communication June 2023
Attijariwafa bank June 2023 Financial Communication 2023
Slide 2: Agenda
Agenda Overview of macroeconomic environment in AWB’s countries of presence IFRS consolidated financial statements as of June 30th, 2023 Liquidity, Capital Adequacy Ratio 2
Slide 3: Macroeconomic environment in Morocco: Outlook and main indicators
Macroeconomic environment in Morocco Outlook and main indicators YoY GDP growth (%) Main indicators 2019 2020 2021 2022 2023 F 2,2 1,7 3,5 2,3 0,5 0,7 YoY GDP growth (%) 2.9 -7.2 8.0 1.3 3.3 Q1 22 Q2 22 Q3 22 Q4 22 Q1 23 Q2 23 YoY Non-agricultural GDP growth (%) Non-agricultural GDP (%) 4.0 -6.9 6.6
Slide 4: Strong resilience of foreign currency reserves
Strong resilience of foreign currency reserves Change (%) Change (%) In MAD bn 2019 2020 2021 2022 H1 2022 H1 2023 21/22 H1 22/23 Imports 527.5 438.3 540.0 746.2 +38.2% 368.0 370.0 +0.5% Imports excl. Energy 451.2 388.4 464.2 592.7 +27.7% 298.6 293.9 +1.6% Exports 344.8 318.7 423.6 588.7 +39.0% 277.
Slide 5: New and traditional export-oriented sectors
% New and traditional export-oriented sectors % Change 2021-2022 Change H1 22-23 % CAGR 2013-2022 2013 2021 2022 H1 2022 H1 2023 (In MAD bn) 260 +15% 84 +33% 111 +34% 31 53 71 New export-oriented sectors Automotive 2013 2021 2022 H1 2022 H1 2023 -240 +12% +35% -4% Aeronautics 8 15 21 11 11 2013 2021
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
F Budget deficit of 5% between 2022 and 2023 • +4.3%*of tax • +16.9%* of non- • +21.6%* of public 2023/2022 revenues tax revenues investment 2022/2021 • +17.4% of tax • +28.9% of non- • +20.6% of public revenues tax revenues investment Budget deficit from 2011 to 2024 (in % GDP) -3,6% -4,0% -3,9% -4
Slide 8: Morocco: main economic, social and tax measures in 2023
Morocco : main economic, social and tax measures in 2023 (2023 Finance Law) • Progressive alignment towards a unified corporate income tax rate ( 20% for businesses with a net income under MAD 100 m; 35% net income above MAD 100 m and 40% for financial sector between 2023-2026) • Lowering of minimum
Slide 9: Al Haouz earthquake: main economic and social measures
Al Haouz earthquake : main economic and social measures Special fund for the management Reconstruction program Tourism promotional Pedagogical measures of the earthquake effects campaign • Creation of a special fund to • Allocation of an overall • Launch of « Let’s meet in • Guarantee continuity of
Slide 10: Macroeconomic environment in Morocco: Inflation
Macroeconomic environment in Morocco Outlook and main indicators Inflation annual average (%) 8,5 Inflation YoY (%) 7,9 8 7,5 10,1 7,2 8,3 8,3 8,9 8,2 7,8 5,9 5,5 4,9 5,0 3,1 7 6,6 6,5 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
Slide 11: Macroeconomic environment in Morocco: Inflation YoY 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 5,9 5,5 4,9 5,0 3,1 Jan-22 Feb-22 Mar-22 Apr-22 May-22 June-22 July-22 Aug-22 Sept-22 Oct-22 Nov-222 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 July-23 Aug-23 Consumer Price Index 11
Slide 12: 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 13: Moroccan banking sector YoY growth
Moroccan banking sector YoY growth X% YoY growth X% CAGR Annual change Deposits (MAD billion) Deposits: YoY growth CAGR 13-17 +6% CAGR 17-19 +3% +5% +5% +7% +5% +3% +5% +5% +7% +6% 1 136 1 053 1 126 1 069 925 950 1 000 718 Jul-23 2013 2018 2019 2020 2021 2022 Jul-22Jul-23 CAGR 13-17 +7% CAGR 17-19 +
Slide 14: Moroccan banking sector YoY growth: retail and corporate loans
Moroccan banking sector YoY growth X% YoY growth X% CAGR Annual change Retail loans (1) (MAD billion) Retail loans: YoY growth CAGR 13-16 +5% CAGR 16-19 +4% +0.2% +3% +2% +5% +3% +0.2% +2.8% +2.2% +1.2% 263 271 272 280 286 284 287 207 2013 2018 2019 2020 2021 2022 Jul-22 Jul-23 Jul-23 Corporate loan
Slide 15: Moroccan banking sector New loan yields
Moroccan banking sector New loan yields Change in bps (in %) Q2-22 Q3-22 Q4-22 Q1-23 Q2-23 Q2-23/ Q2-23/ Q3-22 Q1-23 Average debit rate 4.29 4.24 4.50 5.03 5.26 +102 +23 Loans for individuals 5.14 5.33 5.72 5.63 5.93 +60 +30 Mortgage loans 4.19 4.19 4.32 4.36 4.64 +45 +28 Consumer loans 6.32 6.39 6,
Slide 16: Macroeconomic environment in AWB's main countries: economic growth
Macroeconomic environment in AWB’s main countries of presence – Focus on economic growth Real GDP growth (%) 2020 2021 2022 2023F 2024F Egypt 3.6% 3.4% 6.6% 3.7% 5.0% Tunisia -9.3% 3.0% 2.5% 1.3% 1.9% Ivory coast 2.0% 7.0% 6.7% 6.2% 6.6% Senegal 1.3% 6.1% 4.7% 8.3% 10.6% Cameroon 0.5% 3.6% 3.4% 4.3%
Slide 17: Egypt: balance of payments and evolution of EGP
Egypt : Main components of the balance of payments and evolution of EGP Trade balance ( USD billion) Tourism receipts (USD billion) Imports Exports % Coverage ratio Tourism receipts 12,6 9,8 9,9 10,7 10,3 36% 33% 37% 41% 42% 41% 41% 50% 50% 59% 8,2 7,4 61 63 67 63 71 87 66 3,8 4,4 4,9 57 59 44 55 22
Slide 18: Tunisia: balance of payments and evolution of TND
Tunisia : Main components of the balance of payments and evolution of TND Trade balance (TND billion) Exports Imports Trade balance deficit 18 25 23 30 28 40 31 40 -7 -8 -12 -9 6 months 2020 6 months 2021 6 months 2022 6 months 2023 Current account deficit Foreign currency assets trend between 2018
Slide 19: Monetary policy in AWB's main regions of presence
Monetary policy in AWB’s main regions of presence Monetary policy Main countries of presence 2020-2021 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 December -150 bps to 6.25% +
Slide 20: Inflation rate in AWB's main regions of presence
Inflation rate in AWB’s main regions of presence EGYPT TUNISIA -4 pts -1 pt +4 pts +13 pts -1 pt +0.1pt +3 pts +2 pts 29,5 30 25 21,6 12 10,7 20 10 8,3 14,4 7,3 6,7 8 5,3 5,6 5,7 15 9,2 8,5 6 10 5,7 4 4,5 5 2 0 0 2017 2018 2019 2020 2021 2022 2023F 2017 2018 2019 2020 2021 2022 2023F WAEMU EMCCA +3
Slide 21: Agenda
Agenda Overview of macroeconomic environment in AWB’s countries of presence IFRS consolidated financial statements as of June 30th, 2023 Liquidity, Capital Adequacy Ratio 21
Slide 22: H1 2023 consolidated P&L
H1 2023 consolidated P&L Growth at constant (in MAD million) H1 2022* H1 2023 Growth Rate exchange rate Net banking income 12,793 14,605 +14.2% +17.3% Net interest income 7,937 9,154 +15.3% +19.7% Net fee income 2,729 3,152 +15.5% +16.4% Income from market activities 1,466 1,658 +13.1% +15.6% Others
Slide 23: H1 2023 key financial indicators
H1 2023 key financial indicators H1 2019 H1 2020 H1 2021 H1 2022 H1 2023 Net interest margin (bps)1 457 477 469 455 498 Net interest margin/Total assets (bps) 274 282 277 260 284 Cost income ratio 46.8% 44.6%* 44.7% 42.4% 38.8% (43.8%**) NPL ratio 6.8% 7.5% 7.4% 7.4% 7.1% Cost of risk 0.54% 1.70% 1.
Slide 24: NBI by business line
X% +/- NBI by business line X% Change at constant exchange rate BMET Specialized Financial Companies MAD million -0.1% +3.5% -2.9% +15.2% -0.3% +7.4% -0.6% +2.0% 6,197 6,189 6,407 6,222 7,170 NBI 1,267 1,264 1,357 1,349 1,376 +5.1% +0.7% +2.6% +14.2% H1 19 H1 20 H1 21 H1 22 H1 23 H1 19 H1 20 H1 21 H
Slide 25: Net Interest Income by business line
Net Interest Income by business line X% +/- X% Net interest income / Loans MAD million BMET Specialized Financial Companies +5.1% +3.0% +0.8% +16.3% +4.4% +4.8% -5.4% -0.1% Net interest income 3,869 4,066 4,189 4,221 4,910 587 613 643 608 607 +8.6% +1.8% +5.2% +15.3% H1 19 H1 20 H1 21 H1 22 H1 23 H1
Slide 26: Net interest margin by business line: BMET
Net interest margin by business line between 2012 and H1 2023 72% 71% 70% 66% 66% 65% 67% 67% 66% 65% 64% 66% 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% 24% 24% 18% 17% 19% 19% 22% 23% 24% 23% 23
Slide 27: Fees by business line
X% +/- Fees by business line X% Change at constant exchange rate MAD million BMET Specialized Financial Companies -6.6% +16.8% +7.1% +11.1% -7.9% +9.9% -5.0% +1.1% Net fee income 1,437 1,539 1,710 1,317 1,231 -9.4% +14.3% +7.2% +15.5% 485 446 491 466 471 3,152 H1 19 H1 20 H1 21 H1 22 H1 23 H1 19 H1
Slide 28: Income from market activities by business line
Income from market activities by business line X% +/- MAD million Income from Market activities -12.0% +10.0% -27.3% +13.1% 2,083 1,833 2,017 1,466 1,658 H1 19 H1 20 H1 21 H1 22 H1 23 BMET International Retail Banking -9.9% -0.2% -18.3% +19.3% -11.6% +14.6% +23.1% -6.7% 1,544 1,390 1,387 1,134 1,353
Slide 29: A rigorous cost control based on an ambitious saving plan
X% +/- excluding the contribution to COVID-19 A rigorous cost control based on an special fund in 2020 ambitious saving plan…. X% Cost-Income ratio excluding the contribution MAD million to COVID-19 special fund in 2020 Cost-Income ratio on a consolidated basis: BMET Specialized Financial Companies
Slide 30: Customer Loans and NPL ratio by business line
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% 24% 100% +2.1% +5.7% +0
Slide 31: Customer Loans and NPL ratio: Focus on IRB
Growth of customer loans and NPL ratio by business line: Focus on IRB* X% Annual change X% Change at constant exchange rate + + = International Retail North Africa(1) WAEMU(2) EMCCA(3) (MAD bn) Banking +16.2% -0.4% +11.4% -8.0% +2.9% +3.1% +8.4% +11.3% -7.9% -11.5% +34.5% +14.1% +7.0% -0.4% +12.9% +
Slide 32: Credit risk exposure, staging & coverage
Credit risk exposure*, staging & coverage % Coverage ratio % Annual change MAD billion ; figures as of June 2023 Bank in Morocco Exposure Group Exposure at Default at Default IRB** Exposure at Default 0.6% 0.6% 0.3% 0.4% 1.6% 1.6% 496 519 Stage 1 +4.6% 357 +2.8% 367 +4.5% 100 96 H1 2022 H1 2023 H1 2
Slide 33: Cost of risk by business line between 2012 and H1 2023
Cost of risk by business line between 2012 and H1 2023 xx% Contribution to net customer loans (end of period) 71% 71% 70% 69% 66% 66% 64% 66% 65% 65% 65% 64% 66% 65% +30 bps BMET Average 12-19: 0.66% Cost of risk 18% 17% 19% 19% 22% 23% 24% 23% 23% 23% 24% 25% 24% 24% +45 bps +73 bps IRB Average Ave
Slide 34: NIGS by business line
X% Annual change NIGS by business line x% Return on average assets MAD million BMET Specialized Financial Companies +1.12% +0.35% +0.87% +0.88% +1.01% +2.13% -0.39% +1.84% +2.00% +1.40% -68.0% +164.0% +4.0% +22.1% -93.0% NA +5.0% -20.1% Net income group share 1,779 1,910 1,503 1,564 +1.34% +0.58% +1
Slide 35: RoA by business line between 2012 and H1 2023
RoA by business line between 2012 and H1 2023 xx% Contribution to total assets (end of period) 68% 67% 66% 64% 62% 61% 62% 60% 61% 60% 59% 59% 59% BMET ** 18% 20% 20% 22% 22% 24% 23% 24% 22% 25% 26% 26% 25% RoA IRB 8% 7% 7% 7% 7% 7% 7% 8% 7% 7% 7% 7% 7% SFS ** 7% 6% 6% 7% 8% 8% 8% 8% 8% 9% 9% 8% 9%
Slide 36: RoA below normative level due to a still non-normative CoR
RoA below normative level due to a still non-normative CoR Net banking income / Total average assets X% +/- between H1 2019 and H1 2023 +6 bps Gross Operating Income / Total average assets 4,54% 4,54% 4,34% 4,25% 4,60% +40 bps 2,42% 2,10% 2,40% 2,45% 2,81% RoA* H1 19 H1 20 H1 21 H1 22 H1 23 Expenses
Slide 37: IRB main figures
IRB main figures Growth at a constant (in MAD million) H1 2022 H1 2023 Growth Rate rate Net banking income 4,663 5,387 +15.5% +24.5% General operating expenses -2,165 -2,275 +5.1% +12.3% Gross operating income 2,498 3,112 +24.6% +35.1% Cost of risk -476 -686 +43.9% +53.2% Net income 1,457 1,708 +17.
Slide 38: Agenda
Agenda Overview of macroeconomic environment in AWB’s countries of presence IFRS consolidated financial statements as of June 30th, 2023 Liquidity, Capital Adequacy Ratio 38 Attijariwafa bank presentation – H1 2023 Results
Slide 39: Solid liquidity position
Solid liquidity position Liquid and free assets (HQLA) in MAD billion Bank in Morocco 74 78 74 69 67 57 43 43 35 Dec 31, 2018 Dec 31, 2019 March 31, 2020 Dec 31, 2020 June 30, 2021 Dec 31, 2021 June 30, 2022 Dec 31, 2022 June 30,2023 104% 127% 115% 202% 175% 184% 169% 163% 137% Consolidated basis 11
Slide 40: Solid capital position
Solid capital position X% Buffer above Tier 1 regulatory minimum ~x2 Tier 1 CAR COVID19 crisis 110bps 110bps 180bps 70bps 120bps 130bps 170bps 230bps 204bps 216bps 229bps Capital Adequacy ratio Consolidated basis 12.6% 12.5% 13.3% 12.3% 13.0% 13.1% 13.4% 13.6% 13.0% 12.7% 12.6% Minimum 11.3% 11.0% 1
Slide 41: A solid, resilient and diversified business model (1/2)
A solid, resilient and diversified business model (1/2) Main indicators H1 2023 vs H1 2022 H1 2023 vs H1 2019 Net banking +14.2% Satisfactory growth of the top line NIM (%)* +44 bps +42 bps and resilient margins Fees +15.5% Cost-income ratio Group -3.6 pts -7.9 pts Cost-income ratio BMET -4.5 pts
Slide 42: 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 15.64% Tier1 13.81% Buffer above Tier1 min +481 bps (x2 since 2018) Sound liquidity and capital position On a consolidated basis LCR 157% (+57 pts over minimum) CAR 12.58% Ti