Consolidated Financial Statements and Explanatory Notes 2025

ir-bankofafrica.ma

31 DECEMBER 2025 COMMUNICATION

CONSOLIDATED FINANCIAL STATEMENTS AND EXPLANATORY NOTES

140, Avenue Hassan II

PO. BOX 20 039 Casa Principale

Phone: 05 22 20 04 92 / 96

Fax: 05 22 20 05 12

Capital: 2 202 818 810 MAD

Swift: bmce ma mc Telex: 21.931 - 24.004

Trade Register: casa 27.129 CCP: Rabat 1030

CNSS: 10.2808.5

Tax Identification Number: 01085112 Trading tax: 35502790

GOVERNANCE AND CSR GROUP-FINANCIAL COMMUNICATION

Phone: 05 22 49 28 10

Fax: 05 22 26 49 65

E-mail: relationsinvestisseurs@bankofafrica.ma

BANK OF AFRICA WEBSITES : https://www.bankofafrica.ma https://www.ir-bankofafrica.ma

INTERNATIONAL TRADE WEBSITE : https://www.btrade.ma

BMCE CAPITAL WEBSITE : https://www.bmcecapital.com

ir-bankofafrica.ma

Summary

1. CONSOLIDATED BALANCE SHEET, CONSOLIDATED INCOME STATEMENT, STATEMENT OF NET INCOME, STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY, STATEMENT OF CASH FLOWS AND SUMMARY OF ACCOUNTING POLICIES 5

   1. Consolidated balance sheet 5

   2. Consolidated income statement 6

   3. Statement of changes in shareholders' equity 7

   4. Statement of net income and gains and losses recognised directly in other comprehensive income 7

   5. Statement of cash flows at 31 December 2025 8

   6. Summary of accounting policies applied by the group 9

2. NOTES TO THE INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2025 18

   1. Net interest income 18

   2. Net fee income 18

   3. Net gains on financial instruments at fair value through profit or loss 19

   4. Remuneration from equity instruments through other comprehensive income (non-recyclable) 19

   5. Income and expenses from other activities 19

   6. General operating expenses 19

   7. Cost of risk 19

   8. Net gains and losses on other assets 20

   9. Corporate income tax 21

3. SEGMENT INFORMATION 22

   1. Earnings by business segment 22

   2. Assets and liabilities by business segment 23

4. NOTES TO THE BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2025 24

   1. Cash and balances at central banks, the public treasury and postal cheque centre 24

   2. Financial assets and liabilities at fair value through profit or loss 24

   3. Financial assets at fair value through other comprehensive income 25

   4. Securities at amortised cost 25

   5. Interbank transactions, amounts due to and from credit institutions 25

   6. Amounts due to and from customers 26

   7. Debt securities, subordinated debt and special guarantee funds 28

   8. Current and deferred tax 28

   9. Accrued income, other assets and liabilities 28

   10. Investments in companies accounted for using the equity method 29

   11. Property, plant and equipment and intangible assets used in operations, investment property 29

   12. Goodwill 30

   13. Provisions, contingent liabilities and contingent assets 30

   14. Fair value 31

5. FINANCING AND GUARANTEE COMMITMENTS 33

   1. Financial commitments 33

   2. Guarantee commitments 33

6. SALARY AND EMPLOYEE BENEFITS 33

   1. Description of calculation method 33

   2. Synthesis and description of provisions of existing schemes 33

7. ADDITIONAL INFORMATION 34

   1. Changes in share capital and earnings per share 34

   2. Scope of consolidation 34

   3. Directors' remuneration 34

   4. Related party 35

8. NOTE CONCERNING RISKS 36

Established in 1959 and privatised in 1995, BANK OF AFRICA is a universal bank which offers a diversified range of products and services through a domestic network of 595 branches. BANK OF AFRICA, Morocco's third largest bank in terms of market share for deposits and loans, currently has operations in about thirty countries in sub-Saharan Africa, Europe and Asia.

BANK OF AFRICA's activities primarily include commercial banking, specialised financial services, asset management, investment banking and international activities.

The Group's activities in Morocco

BANK OF AFRICA's activities in Morocco include:

• Retail Banking, sub-divided by market specialisation - retail customers, professional banking customers, private clients and Moroccans living abroad;

• Corporate Banking, including SMEs and large enterprises.

  It is worth noting that BANK OF AFRICA has embarked on a regional strategy aimed at moving the decision-making process closer to the customer and improving the Bank's impact from a commercial perspective. The Bank's distribution network, now organised on a regional basis and enjoying greater independence, encompasses both Retail Banking as well as Corporate Banking activities.

• BMCE Capital, the Bank's investment banking subsidiary, is organised by business line on an integrated basis which include asset management, wealth management, brokerage and capital markets activities as well as M&A and other corporate advisory services.

• Specialised financial services, whose products are primarily marketed via the branch network, the aim being to develop intra-Group commercial and operational synergies - consumer credit, leasing, bank-insurance, factoring and vehicle leasing. RM Experts, subsidiary specialising in recovery, was established in 2010.

BANK OF AFRICA's international activities

BANK OF AFRICA set up a new subsidiary in January 2019, covering a full range of banking and processing services, as part of its ambition to improve the quality of its services. The Bank rapidly turned to international markets by building a strong presence in Europe. In 1972, it became the first Moroccan bank to open a branch in Paris. The Group's European activities are conducted through BANK OF AFRICA UK and BANK OF AFRICA Europe, which constitute the Group's European platform for investing in Africa.

The Bank also has twenty or so representative offices providing banking services to Moroccans living abroad. The Bank recently established BOA Euroservices as a result of the recent re-organisation of its European business. This entity, which is responsible for banking for expatriates, will work closely with the domestic branch network.

BANK OF AFRICA has also developed, since the 1980s, siseable operations in the African market following the restructuring of Banque de Développement du Mali, the country's leading bank, in which it has a 32.4% stake.

BANK OF AFRICA's development accelerated in 2008 following the acquisition of a 35% stake in BOA Group which has operations in some fifteen countries. BANK OF AFRICA has since increased its stake in the pan-African bank to 72,4%.

7, Boulevard Driss Slaoui Casablanca

119 BdAbdelmoumen, 5ème Etage N° 39,

20360 Casablanca

GROUP BANK OF AFRICA BMCE GROUP

We have conducted a limited review of the interim financial statements of BANK OF AFRICA BMCE GROUP and of its subsidiaries (BANK OF AFRICA BMCE GROUP), comprising the consolidated balance sheet, the consolidated income statement, the consolidated statement of comprehensive income, the consolidated cash flow statement, the consolidated statement of changes in shareholders' equity and a selection of explanatory notes for the period from 1 January 2025 to 31 December 2025. These interim financial statements show consolidated shareholders' equity of MAD 40 426 437 K, including consolidated net income of MAD 5 514 079 K.

We conducted our limited review in accordance with the professional standards applicable in Morocco. These standards require that a limited review is planned and conducted to obtain moderate assurance that the interim consolidated financial statements are free from material misstatement. A limited review consists primarily of discussions with the company's staff and analytical checks of financial data; it therefore provides a lower level of assurance than an audit. We have not conducted an audit and, as a result, are not therefore able to express an audit opinion.

BANK OF AFRICA S.A. possesses non-operating real estate assets, acquired through dation-in-payment, totalling MAD 1 billion, with uncertainties regarding their net realisable value.

Based on our limited review and, except for the possible impact from the matter described above, we have not identified any aspects which lead us to believe that the attached consolidated financial statements do not give a true and fair view of the operational income and the consolidated financial position and assets of BANK OF AFRICA BMCE GROUP at 31 December 2025, in accordance with international accounting standards (IAS/IFRS).

Casablanca, 27 March 2026

The Statutory Auditors

1. CONSOLIDATED BALANCE SHEET, CONSOLIDATED INCOME STATEMENT, STATEMENT OF NET INCOME, STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY, STATEMENT OF CASH FLOWS AND SUMMARY OF ACCOUNTING POLICIES

   1.1. CONSOLIDATED BALANCE SHEET

   The consolidated financial statements at 31 December 2025 were approved by the board of directors on 27 March 2026.

   ASSETS UNDER IFRS	Note	31/12/2025	31/12/2024
   Cash and balances at central banks, the Public treasury and postal cheque centre	4.1	24.108.086	21.190.824
   Financial assets at fair value through profit or loss		-	-
   - Financial assets held for trading purposes	4.2	57.781.980	58.960.670
   - Financial assets at fair value through profit or loss	4.2	2.468.478	1.720.743
   Derivative hedging instruments		-	-
   Financial assets at fair value through other comprehensive income		-	-
   - Debt instruments at fair value through other comprehensive income (recyclable)	4.3	779.247	713.984
   - Equity instruments at fair value through other comprehensive income (non-recyclable)	4.3	7.179.503	6.949.970
   Securities at amortised cost	4.4	46.514.657	44.929.732
   Loans and advances to credit and similar institutions at amortised cost	4.5	34.836.085	35.151.660
   Loans and advances to customers at amortised cost	4.5	230.849.356	225.617.043
   Revaluation adjustment for portfolios hedged against interest rate risk		-	-
   Financial investments from insurance operations		-	-
   Current tax assets	4.8	1.759.973	1.406.755
   Deferred tax assets	4.8	2.669.784	2.610.179
   Prepayments, accrued income and other assets	4.9	12.462.536	8.395.221
   Non-current assets held for sale		-	-
   Investments in companies accounted for using the equity method	4.10	1.085.358	1.008.702
   Investment property	4.11	3.113.599	3.314.403
   Property, plant and equipment	4.11	9.294.030	8.693.686
   Intangible assets	4.11	1.757.020	1.597.149
   Goodwill	4.12	1.018.097	1.018.097
   TOTAL ASSETS UNDER IFRS		437.677.787	423.278.818
   			(In thousand MAD)
   LIABILITIES UNDER IFRS	Note	31/12/2025	31/12/2024
   Amounts due to central banks, the Public treasury and postal cheque centre
   Financial liabilities measured using the fair value option through profit or loss
   - Financial liabilities held for trading purposes		-	-
   - Financial liabilities at fair value through profit or loss		-	-
   Derivative hedging instruments
   Debt securities issued	4.7	12.333.680	11.723.938
   Amounts due to credit and similar institutions	4.5	71.016.843	80.247.308
   Amounts due to customers	4.6	275.841.273	257.627.725
   Revaluation adjustment on portfolios hedged against interest rate risk		-	-
   Current tax liabilities	4.8	2.423.616	2.036.293
   Deferred tax liabilities	4.8	1.292.471	1.226.720
   Accruals, deferred income and other liabilities	4.9	20.066.350	19.579.349
   Liabilities related to non-current assets held for sale		-	-
   Liabilities under insurance contracts		-	-
   Provisions	4.13	2.188.574	1.876.793
   Subsidies - public funds and special guarantee funds		-	-
   Subordinated debt	4.6	12.088.543	12.145.994
   TOTAL LIABILITIES		397.251.350	386.464.120
   Shareholders' equity
   Share capital and related reserves		22.177.528	21.375.867
   Consolidated reserves		-	-
   - Attributable to shareholders of the parent company		4.930.178	3.449.115
   - Non-controlling interests		6.428.490	5.642.190
   Gains and losses recognised directly in equity		-	-
   - Attributable to shareholders of the parent company		873.102	877.045
   - Non-controlling interests		503.060	494.375
   Net income for the period		-	-
   - Attributable to shareholders of the parent company		3.813.552	3.427.420
   - Non-controlling interests		1.700.527	1.548.686
   TOTAL CONSOLIDATED SHAREHOLDERS' EQUITY		40.426.437	36.814.698
   TOTAL LIABILITIES UNDER IFRS		437.677.787	423.278.818
   			(In thousand MAD)

   1.2. CONSOLIDATED INCOME STATEMENT
   	Note	dec.-25	dec.-24
   Interest and similar income		20.931.865	20.367.886
   Interest and similar expenses		-6.608.893	-7.184.574
   Net interest income	2,1	14.322.972	13.183.312
   Fees received		5.053.713	4.766.379
   Fees paid		-872.118	-850.427
   Fee income	2,2	4.181.595	3.915.952
   Net gains or losses resulting from net hedging positions		-	-
   Net gains or losses on financial instruments at fair value through profit or loss	2,3	1.010.858	827.800
   Net gains or losses on trading assets/liabilities		833.821	726.969
   Net gains or losses on other assets/liabilities at fair value through profit or loss		177.037	100.831
   Net gains or losses on financial instruments at fair value through other comprehensive income	2,4	265.672	234.465
   Net gains or losses on debt instruments through other comprehensive income		-
   Remuneration of equity instruments (dividends) through other comprehensive income (non-recyclable)		265.672	234.465
   Net gains or losses from the derecognition of financial assets at amortised cost
   Net gains or losses from reclassifying financial assets at amortised cost as financial assets at fair value though profit or loss
   Net gains or losses from reclassifying financial assets through other comprehensive income as financial assets at fair value though profit or loss
   Net income from insurance activities
   Net income from other activities	2,5	1.201.504	1.091.930
   Expenses from other activities	2,5	-643.854	-536.885
   Net banking income		20.338.747	18.716.574
   General operating expenses	2.6	-8.233.620	-7.760.566
   Depreciation, amortisation and impairment of intangible assets and property, plant and equipment	2.6	-1.071.889	-929.472
   Gross operating income		11.033.238	10.026.536
   Cost of risk	2,7	-3.287.621	-3.177.600
   Operating income		7.745.617	6.848.936
   Share of earnings of companies accounted for using the equity method		156.671	141.150
   Net gains or losses on other assets	2,8	-230	-9.809
   Changes in value of goodwill
   Pre-tax income		7.902.059	6.980.277
   Corporate income tax	2.9	-2.387.980	-2.004.171
   Income net of tax from discontinued operations
   Net income		5.514.079	4.976.106
   Non-controlling interests		1.700.527	1.548.686
   Net income attributable to shareholders of the parent company		3.813.552	3.427.420
   			(In thousand MAD)

   1. STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY

      	CHANGES IN EQUITY DEC 2025
      	Share Capital	Reserves related to stock	Treasury stock	Reserves & consolidated earnings	Unrealised or deferred gains or losses	Sharehol- der's Equity attributable to parent	Non-control-linginterests	Total

      Ending balance of adjusted Shareholder's 2.125.656	18.535.917	0	6.993.522	-906.509	26.748.586	7.145.231	33.893.817
      Change in the accounting methods
      Beginning Balance of Shareholder's Equity 2.125.656	18.535.917	0	6.993.522	-906.509	26.748.586	7.145.231	33.893.817
      Operations on capital 32.207	682.087		-714.294		0		0
      Share-based payment plans					0		0
      Operations on treasury stock					0		0
      Dividends			-850.569		-850.569	-765.381	-1.615.950
      Net Income			3.427.420		3.427.420	1.548.686	4.976.106
      Changes in assets and liabilities recognised directly in equity				157.495	157.495	2.422	159.917
      Transfer to earnings				-232.595	-232.595	-185.656	-418.251
      Unrealized or deferred gains or losses 0	0	0	0	-75.100	-75.100	-183.234	-258.334
      Change in the scope of consolidation			-29.707		-29.707	-1.219	-30.926
      Others			-91.183		-91.183	-58.832	-150.015
      Ending balance of Shareholder's Equity 2.157.863	19.218.004	0	8.735.189	-981.609	29.129.447	7.685.251	36.814.698
      Recognition of expected credit losses (on financial instruments)
      Beginning balance of Shareholder's Equity 2.157.863	19.218.004	0	8.735.189	-981.609	29.129.447	7.685.251	36.814.698
      Operations on capital 44.956	756.705		-801.661		0		0
      Share-based payment plans					0		0
      Operations on treasury stock					0		0
      Dividends			-1.085.682		-1.085.682	-903.636	-1.989.318
      Net Income			3.813.552		3.813.552	1.700.527	5.514.079
      Changes in assets and liabilities recognised directly in equity				-92.718	-92.718		-92.718
      Transfer to earnings				92.042	92.042	50.772	142.814
      Unrealized or deferred gains or losses 0	0	0	0	-676	-676	50.772	50.096
      Change in the scope of consolidation			0		0		0
      Others			-62.281		-62.281	99.164	36.883
      Ending balance of Shareholder's Equity 2.202.819	19.974.709	0	10.599.117	-982.285	31.794.360	8.632.078 40.426.438

      Equity 31.12.2023

      01.01.2024

      31.12.2024

      01.01.2025

      31.12.2025

      (In thousand MAD)

   2. STATEMENT OF NET INCOME AND GAINS AND LOSSES RECOGNISED DIRECTLY IN OTHER COMPREHENSIVE INCOME

      	Dec-25	Dec-24
      Net income	5.514.079	4.976.106
      Gains or losses recognised directly in other comprehensive income that will be subsequently reclassified under profit or loss	142.814	-418.251

      Exchange differences 142.814 -418.251

      Financial assets at fair value through other comprehensive income (recyclable)

      Revaluation adjustments

      Gains or losses recognised directly in other comprehensive income that will not be subsequently reclassified under profit or loss	-92.718	159.917
      Actuarial gains or losses on defined benefit plans
      Items recognised at fair value through other comprehensive income (non-recyclable)	-92.718	159.917
      Share of gains or losses recognised directly through other comprehensive income of companies accounted for using the equity method
      Total gains or losses recognised directly in other comprehensive income	50.096	-258.334
      Net income and gains or losses recognised directly through other comprehensive income	5.564.175	4.717.772
      Attributable to shareholders of the parent company	3.812.876	3.352.320
      Non-controlling interests	1.751.299	1.365.452
      		(In thousand MAD)

   3. STATEMENT OF CASH FLOWS AT 31 DECEMBER 2025

      NOTE Dec-25 Dec-24 Pre-tax income 7.902.058 6.980.278
      +/- Net depreciation, amortisation and impairment of intangible assets and property, plant and equipment	2,6	893.206	726.092
      +/- Net impairment of goodwill and other non-current assets		-	-
      +/- Net impairment of financial assets	2,7	-129.747	77.635
      +/- Net provisions	2,7	2.629.533	2.228.797
      +/- Share of earnings of companies accounted for using the equity method	4.10	-156.671	-140.597
      +/- Net gain/loss from investing activities		-574.252	378.610
      +/- Net gain/loss from financing activities		-	-
      +/- Other movements		43.068	-651.345
      Total non-cash items included in pre-tax income and other adjustments 2.705.137 2.619.192
      +/- Flows related to transactions with credit and similar institutions		-16.863.997	85.537
      +/- Flows related to transactions with customers		9.250.417	841.616
      +/- Flows related to other transactions affecting financial assets or liabilities		1.577.509	-4.460.297
      +/- Flows related to other transactions affecting non-financial assets or liabilities		-2.403.426	2.797.787
      +/- Taxes paid		-2.262.578	-1.855.381
      Net increase/decrease in assets and liabilities from operating activities		-10.702.075	-2.590.738
      Net cash flow generated by operating activities		-94.879	7.008.732
      +/- Flows related to financial assets at fair value through other comprehensive income		139.255	-58.700
      +/- Flows related to investment property		4.529	-2.352
      +/- Flows related to plant, property and equipment and intangible assets		-2.230.281	-1.001.711
      Net cash flow related to investing activities -2.086.497 -1.062.763
      +/- Cash flows from or to shareholders		-2.729.673	-1.928.905
      +/- Other net cash flows from financing activities		-861.194	1.373.517
      Net cash flow related to financing activities -3.590.867 -555.388
      Effect of exchange rate changes on cash and cash equivalents		123.147	-384.634
      Net increase/decrease in cash and cash equivalents		-5.649.096	5.005.947
      Cash and cash equivalents at beginning of year		24.023.722	19.017.775
      Cash and balances at central banks, the Public treasury and postal cheque centre (assets and liabilities)	4.1	21.190.824	18.474.878
      Sight deposits (assets and liabilities) and loans/borrowings with credit institutions		2.832.898	542.897
      Cash and cash equivalents at end of year 18.374.626 24.023.722
      Cash and balances at central banks, the Public treasury and postal cheque centre (assets and liabilities)	4.1	24.108.086	21.190.824
      Sight deposits (assets and liabilities) and loans/borrowings with credit institutions	-5.733.460		2.832.898
      Net change in cash and cash equivalents	-5.649.096		5.005.947
      			(In thousand MAD)

   4. SUMMARY OF ACCOUNTING POLICIES APPLIED BY THE GROUP

      1. Applicable accounting standards

         The Group's first consolidated financial statements to be prepared in accordance with international accounting standards (IFRS) were those for the period ended 30 June 2008 with an opening balance on 1st January 2007.

         The Group's consolidated financial statements have been prepared in accordance with international accounting standards (International Financial Reporting Standards - IFRS), as approved by the IASB.

         The Group has not opted for early adoption of the new standards, amendments and interpretations adopted by the IASB where retrospective application is permitted.

         1. Consolidation principles

            1. Scope of consolidation

               The scope of consolidation includes all Moroccan and foreign entities in which the Group directly or indirectly holds a stake.

               The Group includes within its scope of consolidation all entities, whatever their activity, in which it directly or indirectly holds 20% or more of existing or potential voting rights. In addition, it consolidates entities if they meet the following criteria:

               • The subsidiary's total assets exceed 0.5% of the parent company's;

               • The subsidiary's net assets exceed 0.5% of the parent company's;

               • The subsidiary's banking income exceeds 0.5% of the parent company's ;

               • "Cumulative" thresholds which ensure that the combined total of entities excluded from the scope of consolidation does not exceed 5% of the consolidated total.

            2. Consolidation methods

               The method of consolidation adopted (fully consolidated or accounted for under the equity method) will depend on whether the Group has full control, joint control or exercises significant influence.

               At 31 December 2025, no Group subsidiary was jointly controlled.

            3. Consolidation rules

               The consolidated financial statements are prepared using uniform accounting policies for reporting like transactions and other events in similar circumstances.

               Elimination of intragroup balances and transactions

               Intragroup balances arising from transactions between consolidated companies, and the transactions themselves, including income, expenses and dividends, are eliminated. Profits and losses arising from intragroup sales of assets are eliminated, except where there is an indication that the asset sold is impaired.

               Translation of financial statements prepared in foreign currencies

               The Group's consolidated financial statements are prepared in dirhams. The financial statements of companies whose functional currency is not the dirham are translated using the closing rate

               method. Under this method, all assets and liabilities, both monetary and non-monetary, are translated using the spot exchange rate at the balance sheet date. Income and expenditures are translated at the average rate for the period.

            4. Business combinations and measurement of goodwill Cost of a business combination

            The cost of a business combination is measured as the aggregate fair value of assets acquired, liabilities incurred or assumed and equity instruments issued by the acquirer in consideration for control of the acquired company. Costs attributable to the acquisition are recognised through income.

            Allocating the cost of a business combination to the assets acquired and liabilities incurred or assumed

            The Group allocates, at the date of acquisition, the cost of a business combination by recognising those identifiable assets, liabilities and contingent liabilities of the acquired company which meet the criteria for fair value recognition at that date.

            Any difference between the cost of the business combination and the Group's share of the net fair value of the identifiable assets, liabilities and contingent liabilities is recognised under goodwill.

            Goodwill

            At the date of acquisition, goodwill is recognised as an asset. It is initially measured at cost, that is, the difference between the cost of the business combination over the Group's share of the net fair value of the identifiable assets, liabilities and contingent liabilities.

            The Group has adopted from 2012 the "full goodwill" method for new acquisitions. This method consists of measuring goodwill based on the difference between the cost of the business combination and minority interests over the fair value of the identifiable assets, liabilities and contingent liabilities.

            It is worth noting that the Group has not restated business combinations occurring before 1 January 2008, the date of firsttime adoption of IFRS, in accordance with IFRS 3 and as permitted under IFRS 1.

            Measurement of goodwill

            Following initial recognition, goodwill is measured at cost less cumulative impairment.

            In accordance with IAS 36, impairment tests must be conducted whenever there is any indication of impairment that a unit may be impaired and at least once a year to ensure that the goodwill recognised for each CGU does not need to be written down.

            At 31 December 2025, the Group carried out impairment tests to ensure that cash-generating units' carrying amount did not exceed their recoverable amount.

            The recoverable amount of a cash-generating unit is the higher of the net fair value of the unit and its value in use. Fair value is the price that is likely to be obtained from selling the CGU in normal market conditions.

            Value in use is based on an estimate of the current value of future cash flows generated by the unit's activities as part of the Bank's market activities:

            • If the subsidiary's recoverable amount is more than the carrying amount, then there is no reason to book an impairment charge;

            • If the subsidiary's recoverable amount is less than the carrying amount, the difference is recognised as an impairment charge. It will be allocated to goodwill as a priority and subsequently to other assets on a pro-rata basis.

              The Bank has employed a variety of methods for measuring CGU value in use depending on the subsidiary. These methods are based on assumptions and estimates:

            • A revenue-based approach, commonly known as the "dividend discount model", is a standard method used by the banking industry. The use of this method depends on the subsidiary's business plan and will value the subsidiary based on the net present value of future dividend payments. These flows are discounted at the cost of equity.

            • The "discounted cash flow method" is a standard method for measuring firms in the services sector. It is based on discounting available cash flows at the weighted average cost of capital.

            Step acquisitions

            In accordance with revised IFRS 3, the Group does not calculate additional goodwill on step acquisitions once control has been obtained.

            In particular, in the event that the Group increases its percentage interest in an entity which is already fully consolidated, the difference at acquisition date between the cost of acquiring the additional share and share already acquired in the entity is recognised in the Group's consolidated reserves.

         2. Financial assets and liabilities

            1. Loans and receivables

               Loans and receivables include credit provided by the Group.

               Loans and receivables are initially measured at fair value or equivalent, which, as a general rule, is the net amount disbursed at inception including directly attributable origination costs and certain types of fees or commission (syndication commission, commitment fees and handling charges) that are regarded as an adjustment to the effective interest rate on the loan.

               Loans and receivables are subsequently measured at amortised cost. The income from the loan, representing interest plus transaction costs and fees and commission included in the initial value of the loan, is calculated using the effective interest method and taken to income over the life of the loan.

            2. Securities Classification of securities

               IFRS 9 replaces the classification and valuation models for financial assets provided for in IAS 39 by a model comprising only 3 accounting categories :

               • Depreciated cost;

               • Fair value through equity: changes in fair value of the financial instrument are impacted in «other items of the comprehensive income» («fair value by OCI»);

               • Fair value through profit or loss: changes in the fair value of the instrument are impacted in net income.

                 The classification of a financial asset in each category is based on:

               • business model defined by the company

               • and the characteristics of its contractual cash flows (the «cash flow» criterion) solely payments of principal and interest», or «SPPI»).

                 The management methods relate to the way the company manages its financial assets in order to generate cash flows and create cash flow and value. The business model is specified for an asset portfolio and does not constitute an intention on a case-by-case basis for an individual financial asset.

                 IFRS 9 distinguishes three management models:

               • The collection of contractual cash flows, the business model

                 «Collection»;

               • The collection of contractual flows and the sale of assets, the model of management « Collection and Sale »;

               • Other management intentions, i.e. the «Other / Sale» management model.

                 The second criterion («SPPI» criterion) is analysed at the contract level. The test is satisfied when the funding is only eligible for reimbursement of the principal and when the payment of interest received reflects the value of the time of money, credit risk associated with the instrument, other costs and risks of a traditional loan agreement as well as a reasonable margin, whether the interest rate is fixed or variable.

                 The criteria for classifying and measuring financial assets depend on the nature of the financial asset, as qualified:

               • debt instruments (i.e. loans and fixed or determinable income securities)

                 ; or

               • equity instruments (i.e. shares).

                 The classification of a debt instrument in one of the asset classes is a function of the management model applied to it by the company and the characteristics of the contractual cash flows of the instrument (SPPI criterion). Debt instruments that respond to the SPPI criterion and the «Collection» management model are classified as follows amortised cost. If the SPPI criterion is verified but the business model is the collection and sale, the debt instrument is classified at fair value by equity (with recycling). If the SPPI criterion is not verified and the business model is different, the debt instrument is classified as fair value value by result.

                 Under IFRS 9, equity instruments held by (stocks) are:

               • always measured at fair value through profit or loss,

               • except those not held for trading for which the standard allows the irrevocable election to be made at the time of recognition of each financial asset, to recognise it at fair value by counterpart of other comprehensive income (fair value through profit or loss OCI), with no possibility of recycling by result. Assets classified in this category will not be depreciated. In the event of a transfer, these changes are not recycled to the income statement, the gain or loss on disposal is recognised in shareholders' equity. Only dividends are recognised in result.

                 IFRS 9 provides for models for classifying and measuring financial liabilities according to 3 accounting categories:

               • financial liability at amortised cost;

               • financial liability at fair value through profit or loss;

               • financial liability at fair value through profit or loss on option.

                 On the initial recognition date, a financial liability may be designated, on irrevocable option, at fair value through profit or loss:

               • under certain conditions when the liability contains embedded derivatives

                 ; or

               • if this leads to more relevant information as a result of the elimination or the significant reduction of a distortion of accounting treatment (« mismatch»); or

               • whether the liabilities are managed with other financial instruments that are measured and managed at fair value in accordance with an investment policy or risk management and that information is communicated on this to key management personnel within the meaning of IAS 24.

                 In addition, for these liabilities, the standard allows for the recognition of the change in fair value attributable to the change in credit risk in other comprehensive income. However, this processing is only possible to the extent that it does not contribute to creating or aggravate an accounting mismatch

                 Dividends received on variable-income securities are presented in the aggregate "Remuneration of equity instruments recognised as non-recyclable equity instruments" when the Group's right to receive them is established.

                 Temporary acquisitions and sales Repurchase agreements

                 Securities subject to repurchase agreements are recorded in the Group's balance sheet in their original category.

                 The corresponding liability is recognised in the under "Borrowings" as a liability on the balance sheet.

                 Securities temporarily acquired under reverse repurchase agreements are not recognised in the Group's balance sheet. The corresponding receivable is recognised under "Loans and receivables".

                 Securities lending and borrowing transactions

                 Securities lending transactions do not result in de-recognition of the lent securities while securities borrowing transactions result in recognition of a debt on the liabilities side of the Group's balance sheet.

                 Date of recognition of securities transactions

                 Securities recognised at fair value through income or classified under held-to-maturity or available-for-sale financial assets are recognised at the trade date.

                 Regardless of their classification (recognised as loans and receivables or debt), temporary sales of securities as well as sales of borrowed securities are initially recognised at the settlement date.

                 These transactions are carried on the balance sheet until the Group's rights to receive the related cash flows expire or until

                 the Group has substantially transferred all the risks and rewards related to ownership of the securities.

            3. Foreign currency transactions

               Monetary assets and liabilities denominated in foreign currencies

               Monetary assets and liabilities denominated in foreign currencies are translated into the functional currency of the relevant Group entity at the closing rate. Translation differences are recognised in the income statement, except for those arising from financial instruments earmarked as a cash flow hedge or a net foreign currency investment hedge, which are recognised in shareholders' equity.

            4. Impairment and restructuring of financial assets

               IFRS 9 introduces a new model for the recognition of impairment of financial assets based on expected credit losses. This model represents a change from the IAS 39 model that is based on proven credit losses.

               Under IFRS 9, the portfolio is segmented into three Buckets in using the notion of significant degradation from the beginning:

               • Bucket 1» consists of all sound financial assets that do not are not significantly degraded since the beginning and for which it will be calculated an expected credit loss within 1 year.

               • Bucket 2» includes assets for which the credit risk has significantly increased since the beginning. A credit loss must then be calculated over the remaining useful life of the asset, or residual maturity.

               • «Bucket 3» corresponds to all assets in default or those for which credit quality will deteriorate to the point that the recoverability of the is threatened. Bucket 3 corresponds to the scope of the provision under IAS 39. The entity recognises a demonstrated credit loss at maturity. Thereafter, if the conditions for the classification of instruments financial instruments in bucket 3 are no longer respected, these instruments are reclassified as bucket 2 and then as bucket 1 depending on the improvement of credit risk quality.

                 The definition of default is consistent with the one outlined in Circular 19G with a rebuttable assumption of default occurring when amounts are no later than 90 days past due.

                 The definition of default is used consistently to assess whether there is an increase in credit risk and to measure expected credit losses.

                 The monitoring of risk degradation is based on the monitoring systems of the internal risks, including in particular the monitoring of receivables and unpaid bills.

                 The significant increase in credit risk may be assessed on an individual or collective basis (by grouping together financial instruments based on common credit risk characteristics), taking into account all reasonable and supportable information and comparing the risk of default of the financial instrument at the reporting date with the risk of default of the financial instrument at the date of initial recognition.

                 Each instrument is assessed to ascertain whether there has been a significant increase in credit risk based on indicators and thresholds that vary depending on the kind of exposure and counterparty type.

                 A financial asset is also considered to have undergone a significant increase in credit risk if one or more of the following criteria are met:

                 • Financial asset placed on the watchlist

                 • Reorganised due to payment difficulties, although not defaulting

                 • Past-due event

                 • There are material adverse changes in the borrower's economic, commercial or financial operating environment

                 • Risks of financial difficulties have been identified, etc.

                 In order to compensate for the fact that some factors or indicators may not be available at a financial instrument level, on an individual basis, the standard allows for the entity to carry out an assessment as to whether there has been a significant increase in credit risk on appropriate groups or portions of a portfolio of financial instruments.

                 Shared credit risk characteristics may be used to constitute portfolios for the purpose of carrying out an assessment as to whether there has been a significant increase in credit risk on a collective basis. Shared credit risk characteristics include instrument type, credit risk ratings, collateral type, date of initial recognition, remaining term to maturity, industry, the borrower's geographical location, the value of the collateral relative to the financial asset if it has an impact on the probability of default occurring (for example, non-recourse loans in some countries, or on loan-to-value ratios), the distribution channel, the reason for raising finance, etc..

                 Expected credit losses are defined as being an estimate of credit losses weighted by the probability of their occurring over the financial instrument's expected lifetime. They are measured on an individual basis, for each exposure.

                 The calculation of impairment losses is based on three main criteria:

                 Probabilities of Default (PD)

                 The Probability of Default (PD) is the likelihood of a borrower defaulting on its financial obligations over the subsequent 12 months (1-year PD) or over the contract's remaining maturity (lifetime PD). The PD is the probability of a borrower defaulting over a particular time horizon 't'. The PD used to estimate expected losses according to IFRS 9 is calculated for each homogeneous risk class.

                 For financial assets that are in 'Bucket 1' (i.e. healthy, non-sensitive), a 12-month PD is calculated i.e. the probability of default occurring in the 12 months following the reporting date.

                 For financial assets in 'Bucket 2' (i.e. healthy, sensitive), a PD to maturity is calculated. And, by definition, financial assets in 'Bucket 3' (i.e. defaulting) have a PD of 1.

                 In order to calculate the 1-year PD for a given loan, BANK OF AFRICA has divided the portfolios' loans into homogeneous risk classes that are segmented on the basis of external ratings or delinquency classes.

                 Lifetime PDs are calculated by applying rating migration matrices to 1-year PDs, the latter resulting from external credit rating systems or delinquency classes. Rating migration matrices are determined by modelling, for each portfolio, how defaults develop between the date of initial recognition and a contract's maturity. Rating migration matrices are developed on the basis of statistical observations.

                 Loss Given Default (LGD)

                 The Loss Given Default (LGD) is the expected credit loss as a percentage of the exposure at default. The Loss Given Default is expressed as a percentage of EAD and is calculated using Global Recovery Rates (GRRs). GRRs are assessed by homogeneous risk class for a certain type of collateral based on historical recovery rates.

                 For sizeable loans in difficulty, if statistical modelling is not possible (limited number of observations, special characteristics, etc.), the expected future recoverable flows are estimated by the Group's recovery subsidiary. The LGD is the difference between the contractual cash flows and the estimated expected cash flows (including principal and interest).

                 Exposure At Default (EAD)

                 It is based on the amount to which the Group expects to be actually exposed at the time of default, either over the subsequent 12 months or over the remaining period to maturity.

                 The Group draws on existing concepts and systems to set these parameters. Expected credit losses on financial instruments are measured as the product of these three parameters.

                 Under IFRS 9, recognition of expected credit losses is based on forward-looking macroeconomic conditions.

                 The parameters are adjusted after factoring in the prevailing economic conditions based on macroeconomic research provided by in-company industry experts. As a result of this research and the expert opinion provided, PDs may be revised (upwards or downwards depending on the outlook) over a three-year horizon. The inclusion of other macroeconomic indicators is currently being phased in.

                 The organisational and management approach used to determine these scenarios is the same as that adopted for the budgeting process. These are reviewed annually based on suggestions from the economic research team and are validated by the General Management Committee.

                 For securities (which are overwhelmingly sovereign securities), the calculation of the depreciation is determined according to the following principles:

                 - When acquiring shares: all shares are considered as part of Bucket 1 regardless of the issuer's rating,

               • In subsequent evaluations:

               • In the event of a downgrade of the issuer's rating, the security changes to bucket 2

               • On the basis of credit losses proven to be at maturity if the counterparty is in default - Bucket 3

                 Forbearance

                 The Bank complies with IFRS requirements in matters of forbearance agreements, particularly with regard to discounts applied to restructured loans.The amount deducted is recognised under cost of risk. If the restructured loan is subsequently reclassified as a performing loan, it is reinstatedunder net interest income over the remaining term of the loan.

                 Restructuring of assets classed as "Loans and receivables"

                 An asset classified in "Loans and receivables" is considered to be restructured due to the borrower's financial difficulty when the Group, for economic or legal reasons related to the borrower's financial difficulty, agrees to modify the terms of the original transaction that it would not otherwise consider, resulting in the borrower's contractual obligation to the Group, measured at present value, being reduced compared with the original terms.

                 At the time of restructuring, a discount is applied to the loan to reduce its carrying amount to the present value of the new expected future cash flows discounted at the original effective interest rate.

                 The Decrease in the asset value is recognised through income under "Cost of risk".

                 For each loan, the discount is recalculated at the renegotiation date using original repayment schedules and renegotiation terms.

                 The discount is calculated as the difference between :

               • The sum, at the renegotiation date, of the original contractual repayments discounted at the effective interest rate; and

               • The sum, at the renegotiation date, of the renegotiated contractual repayments discounted at the effective interest rate. The discount, net of amortisation, is recognised by reducing loan outstandings through income. Amortisation will be recognised under net banking income.

            5. Issues of debt securities

               Financial instruments issued by the Group are qualified as debt instruments if the Group company issuing the instruments has a contractual obligation to deliver cash or another financial asset to the holder of the instrument. The same applies if the Group is required to exchange financial assets or liabilities with another entity on terms that are potentially unfavourable to the Group, or to deliver a variable number of the Group's treasury shares.

               In the Group's case, this concerns certificates of deposit issued by Group banks such as BANK OF AFRICA SA, BOA Group as well as notes issued by finance companies MAGHREBAIL and SALAFIN.

            6. Treasury shares

               The term "treasury shares" refers to shares of the parent company, BANK OF AFRICA SA and its fully consolidated subsidiaries.

               "Treasury shares" refer to shares issued by the parent company, BANK OF AFRICA SA, or by its fully consolidated subsidiaries. Treasury shares held by the Group are deducted from consolidated shareholders' equity regardless of the purpose for which they are held. Gains and losses arising on such instruments are eliminated from the consolidated income statement.

               As of 31 December 2025, the Group does not hold any treasury shares.

            7. Derivative instruments

               All derivative instruments are recognised in the balance sheet on the trade date at the trade price and are re-measured to fair value on the balance sheet date.

               Derivatives held for trading purposes are recognised "Financial assets at fair value through income" when their fair value is positive and in "Financial liabilities at fair value through income" when their fair value is negative.

               Realised and unrealised gains and losses are recognised in the income statement under "Net gains or losses on financial instruments at fair value through income".

            8. Fair value measurement of own credit default risk (DVA) / counterparty risk (CVA)

               Since the value of derivative products has not been material until now, the Bank will continue to monitor the extent to which this factor is significant in order to take into consideration fair value adjustments relating to its own credit default risk (DVA) / counterparty risk (CVA).

            9. Determining the fair value of financial instruments

               Fair value is defined as the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's length transaction.

               Financial assets classified under "Financial assets at fair value through income" and "Available-for-sale financial assets" are measured at fair value.

               Fair value in the first instance relates to the quoted price if the financial instrument is traded on a liquid market.

               If no liquid market exists, fair value is determined by using valuation techniques (internal valuation models as outlined in Note 4.15 on fair value).

               Depending on the financial instrument, these involve the use of data taken from recent arm's length transactions, the fair value of substantially similar instruments, discounted cash flow models or adjusted book values.

               Characteristics of a liquid market include regularly available prices for financial instruments and the existence of real arm's length transactions.

               Characteristics of an illiquid market include factors such as a significant Decline in the volume and level of market activity, a significant variation in available prices between market participants or a lack of recent observed transaction prices.

            10. Income and expenses arising from financial assets and liabilities

                The effective interest rate method is used to recognise income and expenses arising from financial instruments, which are measured at amortised cost.

                The effective interest rate is the rate that exactly discounts estimated future cash flows through the expected life of the financial instrument or, when appropriate, a shorter period, to the net carrying amount of the asset or liability in the balance sheet. The effective interest rate calculation takes into account all fees received or paid that are an integral part of the effective interest rate of the contract, transaction costs, and premiums and discounts.

            11. Cost of risk

                "Cost of risk" includes impairment provisions net of write-backs and provisions for credit risk, losses on irrecoverable loans and amounts recovered on amortised loans as well as provisions and provision write-backs for other risks such as operating risks.

            12. Offsetting financial assets and liabilities

            A financial asset and a financial liability are offset and the net amount presented in the balance sheet if, and only if, the Group

            has a legally enforceable right to offset the recognised amounts and intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

         3. Property plant and equipment and intangible assets

            a. Property, plant and equipment

            The Group has opted for the cost model to measure property, plant and equipment and intangible assets.

            It is worth noting that, in application of the option provided under IFRS 1, the Group has chosen to measure certain items of property, plant and equipment at the transition date at their fair value and use this fair value as deemed cost at this date.

            In accordance with IAS 23, borrowing costs directly attributable to the acquisition are included in the acquisition cost of items of property, plant and equipment.

            As soon as they are available for use, items of property, plant and equipment are amortised over the asset's estimated useful life.

            Given the character of the Group's property, plant and equipment, it has not adopted any residual value except for transport equipment owned by LOCASOM, a subsidiary.

            In respect of the Group's other assets, there is neither a sufficiently liquid market nor a replacement policy over a period that is considerably shorter than the estimated useful life for any residual value to be adopted.

            This residual value is the amount remaining after deducting from the acquisition cost all allowable depreciable charges.

            Given the Group's activity, it has adopted a component-based approach for property. The option adopted by the Group is a component-based amortised cost method by applying using a component-based matrix established as a function of the specific characteristics of each of the Group's buildings.

            Component-based matrix adopted by BANK OF AFRICA

            Head office property

            Other property

            Period Share Period Share

            The Group qualifies investment property as any non-operating property.

            The Group has opted for the cost method to value its investment property. The method used to value investment property is identical to that for valuing operating property.

            In accordance with the requirements of paragraph 79(e) of IAS 40, the Group has investment properties whose acquisition cost is deemed to be substantially material valued by external surveyors at each balance sheet date (cf. 4.15 on fair value).

            c. Intangible assets

            Intangible assets are initially measured at cost which is equal to the amount of cash or cash equivalent paid or any other consideration given at fair value to acquire the asset at the time of its acquisition or construction.

            Subsequent to initial recognition, intangible assets are measured at cost less cumulative amortisation and impairment losses.

            The amortisation method adopted reflects the rate at which future economic benefits are consumed.

            Impairment is recognised when evidence (internal or external) of impairment exists. Evidence of impairment is assesses at each balance sheet date.

            Given the character of the intangible assets held, the Group considers that the concept of residual value is not relevant in respect of its intangible assets. As a result, residual value has not been adopted.

         4. Leases

            Group companies may either be the lessee or the lessor in a lease agreement.

            Leases contracted by the Group as lessor are categorised as either finance leases or operating leases.

            1. Lessor accounting Finance leases

               In a finance lease, the lessor transfers the substantial portion of the

               risks and rewards of ownership of an asset to the lessee. It is treated

               Structural works 80 55% 80 65%

               Façade 30 15%

               General & technical 20 20% 20 15% installations

               Fixtures and fittings 10 10% 10 20%

               Impairment

               The Group has deemed that impairment is only applicable to buildings and, as a result, the market price (independently-assessed valuation) will be used as evidence of impairment.

            2. Investment property

            IAS 40 defines investment property as property held to earn rentals or for capital appreciation or both. An investment property generates cash flows that are largely independent from the company's other assets in contrast to property primarily held for use in the production or supply of goods or services.

            as a loan made to the lessee to finance the purchase of the asset.

            The present value of the lease payments, plus any residual value, is recognised as a receivable.

            The net income earned from the lease by the lessor is equal to the amount of interest on the loan and is taken to the income statement under "Interest and other income". The lease payments are spread over the lease term and are allocated to reducing the principal and to interest such that the net income reflects a constant rate of return on the outstanding balance. The rate of interest used is the rate implicit in the lease.

            Individual and portfolio impairments of lease receivables are determined using the same principles as applied to other loans and receivables.

            Operating leases

            An operating lease is a lease under which the substantial portion of the risks and rewards of ownership of an asset are not transferred to the lessee.

            The asset is recognised under property, plant and equipment in the lessor's balance sheet and depreciated on a straight-line basis over the lease term. The depreciable amount excludes the asset's residual value. The lease payments are taken to the income statement in full on a straight-line basis over the lease term.

            Lease payments and depreciation expenses are taken to the income statement under "Income from other activities" and "Expenses from other activities".

            b. Lessee accounting

            Leases contracted by the Group as lessee are categorised as either finance leases or operating leases.

            Finance leases

            A finance lease is treated as an acquisition of an asset by the lessee, financed by a loan. The leased asset is recognised in the balance sheet of the lessee at the lower of fair value or the present value of the minimum lease payments calculated at the interest rate implicit in the lease.

            A matching liability, equal to the fair value of the leased asset or the present value of the minimum lease payments, is also recognised in the balance sheet of the lessee. The asset is depreciated using the same method as that applied to owned assets after deducting the residual value from the amount initially recognised over the useful life of the asset. The lease obligation is accounted for at amortised cost.

            The Operating leases

            IFRS 16 'Leases' will supersede IAS 17 from 1 January 2019. It will change the way in which leases are accounted for.

            For all lease agreements, the lessee will be required to recognise a right-ofuse asset on its balance sheet representing its right to use the underlying leased asset and a lease liability representing its obligation to make lease payments. In its income statement, the lessee will separately recognise the depreciation of the right-of-use asset and the interest expense on the lease liability. This treatment, which is currently applied by lessees to financelease

            Yes

            Does the customer control the use of the asset?

            a lease

            The contract is or contains

            Yes

            No

            The

            does not

            contract

            No lease

            contain a

            No

            Is there an identified asset? Explicitly or implicitly specified, physically distinct, the lessor not having the right to substitute the asset for an alternative one

The contract does not contain a lease

The Group has adopted two simplification measures provided for under IFRS 16 regarding short-term contracts (up to 12 months) and contracts whose underlying assets are of limited value. The IASB recommends a guideline threshold of USD 5.000 or less.

The lease period

The period during which the Group has previously used particular types of property (leased or owned) and the underlying economic reasons thereof have been used to determine whether the group is reasonably certain of exercising an option or not.

The lease periods applied therefore depend on the type of property:

• For commercial leases, a period of 9 years on average has been applied;

• For residential leases, a period of 3 years;

• For leased vehicles, the period applied is that of the contract.

transactions, will subsequently be extended to operating leases.

Lessor reasonably certain to exercise the renewal option

Lessor reasonably certain of not exercising the renewal option

Policies adopted

The transition method chosen by BANK OF AFRICA Group is the modified retrospective approach by which the lease liability is recognised at the present value of remaining lease payments at the time of firsttime application (01/01/2019) with a right-of-use asset of an equivalent amount recognised at the same time. Consequently, first-time application of IFRS 16 had no impact on shareholders' equity.

To identify leases that fall within the scope of this standard, the following criteria shall apply:

The liability related to the lease is equal to the present value of the lease payments and estimated payments at the end of the contract (early termination penalties if applicable and/or residual value guarantees if applicable).

The rate used to discount these payments is the incremental borrowing rate which is the rate of interest that a lessee would have to pay to borrow over a similar term to that of the lease liability.

Preparation of the financial statements requires managers of business lines and corporate functions to make assumptions and estimates that are reflected in the measurement of income and expense in the income statement and of assets and liabilities in the balance sheet and in the disclosure of information in the notes to the financial statements.

This requires the managers in question to exercise their judgement and to make use of information available at the time of preparation of the financial statements when making their estimates.

The actual future results from operations where managers have made use of estimates may in reality differ significantly from those estimates depending on market conditions. This may have a material impact on the financial statements.

Those estimates which have a material impact on the financial statements primarily relate to:

• Impairment (on an individual or collective basis) recognised to cover credit risks inherent in banking intermediation activities ;

  Other estimates made by the Group's management primarily relate to :

• Goodwill impairment tests ;

• Provisions for employee benefits;

• The measurement of provisions for risks and charges.

1. NOTES TO THE INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2025

   1. NET INTEREST INCOME

      includes net interest income (expense) related to customer and interbank transactions, debt securities issued by the Group, the trading portfolio (fixed income securities, repurchase agreements, loan / borrowing transactions and debts securities), and debt instruments.

      Dec-25 Dec-24
      	Income	Expense	Net	Income	Expense	Net
      Customer transactions	13.594.134	3.483.634	10.110.500	13.352.887	3.438.360	9.914.527
      Deposits, loans and borrowings	12.654.262	3.389.299	9.264.963	12.572.324	3.383.259	9.189.065
      Repurchase agreements	0	94.335	-94.335	0	55.101	-55.101
      Finance leases	939.872	0	939.872	780.563	0	780.563
      Interbank transactions	1.490.738	2.163.749	-673.011	1.589.570	2.728.011	-1.138.441
      Deposits, loans and borrowings	1.477.947	1.885.925	-407.978	1.576.387	2.044.598	-468.211
      Repurchase agreements	12.791	277.824	-265.033	13.182	683.412	-670.230
      Debt issued by the Group		961.510	-961.510	1.018.204		-1.018.204
      Financial instruments at fair value through other comprehensive income			0			0
      Debt instruments	5.846.993		5.846.993	5.425.429		5.425.429
      TOTAL INTEREST INCOME/(EXPENSE)	20.931.865	6.608.893	14.322.972	20.367.886	7.184.574	13.183.312

   2. NET FEE INCOME

      (In thousand MAD)

      Dec-25 Dec-24
      	Income	Expense	Net	Income	Expense	Net
      Net fees on transactions	3.793.730	254.889	3.538.841	3.527.091	264.666	3.262.425
      With credit institutions			-			-
      With customers	2.601.138		2.601.138	2.338.563		2.338.563
      In securities	350.222	89.056	261.166	249.267	97.947	151.320
      In foreign exchange	842.370	165.833	676.536	939.261	166.718	772.542
      In financial futures and off balance sheet transac- tions			-			-
      Provision of banking and financial services	1.259.983	617.229	642.754	1.239.288	585.762	653.526
      Net income from mutual fund management			-			-
      Net income from means of payment	761.916	185.339	576.577	640.688	171.456	469.232
      Insurance			-			-
      Other	498.067	431.890	66.177	598.600	414.306	184.294
      NET FEE INCOME	5.053.713	872.118	4.181.595	4.766.379	850.427	3.915.952
      						(In thousand MAD)

      Net fee income covers fees from interbank market and the money market, customer transactions, securities transactions, foreign exchange transactions, securities commitments, financial transactions derivatives and financial services.

   3. NET GAINS ON FINANCIAL INSTRUMENTS AT FAIR VALUE THROUGH PROFIT OR LOSS

      This entry includes all items of income (excluding interest income and expenses, classified under «Net interest income» as described above) relating to financial instruments managed within the trading book.

      This covers gains and losses on disposals, gains and losses related to mark-to-market, as well as dividends from variable-income securities.

      	Dec-25			Dec-24
      	Trading assets	Other assets at fair value through profit or loss	Total	Trading portfolio	Portfolio measured using the fair value option	Total
      Fixed income and variable income securities	848.083	177.037	1.025.120	672.375	100.831	773.206
      Derivative instruments	-14.262		-14.262	54.594		54.594
      Repurchase agreements
      Loans
      Borrowings
      Revaluation of interest rate risk hedged portfolios
      Revaluation of foreign exchange positions
      TOTAL	833.821	177.037	1.010.858	726.969	100.831	827.800

      (In thousand MAD)

   4. REMUNERATION FROM EQUITY INSTRUMENTS THROUGH OTHER COMPREHENSIVE INCOME (NON-RECYCLABLE)

      	Dec-25	Dec-24
      Remuneration from equity instruments (dividends) through other comprehensive income (non-recyclable)	265.672	234.465
      TOTAL	265.672	234.465

      (In thousand MAD)

   5. INCOME AND EXPENSES FROM OTHER ACTIVITIES

   	Income	Dec-25 Expense	Net	Income	Dec-24 Expense	Net
   Net income from insurance activities			0	0
   Net income from investment property	0	0	0	0	0	0
   Net income from assets held under operating leases	358.824	159.194	199.630	338.858	134.337	204.521
   Net income from real estate development activities	0	0	0	0	0	0
   Other banking income and expenses	617.525	442.290	175.235	590.369	383.207	207.162
   Other non-banking income from operations	225.156	42.370	182.786	162.702	19.341	143.361
   TOTAL NET INCOME FROM OTHER ACTIVITIES	1.201.504	643.854	557.651	1.091.930	536.885	555.045

   		(In thousand MAD)
   2.6. GENERAL OPERATING EXPENSES
   	Dec-25	Dec-24
   Employee expenses	4.520.984	4.296.569
   Taxes	336.864	298.619
   External expenses	3.167.719	2.972.968
   Other general operating expenses	208.053	192.410
   Impairment and provisions for intangible assets and property, plant and equipment	1.071.889	929.472
   General Operating Expenses	9.305.509	8.690.038
   		(In thousand MAD)

   Amounts recovered on loans and advances	164.525	166.793
   Losses on irrecoverable loans and advances	-834.326	-1.136.645
   Other	-363.850	-38.730
   Cost of risk	-3.287.621	-3.177.600
   		(In thousand MAD)
   2.8. NET GAINS AND LOSSES ON OTHER ASSETS
   	Dec-25	Dec-24
   Property, plant and equipment and intangible assets used in business operations		16.837
   Capital gains on disposal		18.037
   Capital losses on disposal		1.200
   Other	-230	-26.646
   Net gains or losses on other assets	-230	-9.809
   		(In thousand MAD)

   2.7. COST OF RISK

   Net impairment	31/12/2025 -2.253.970	31/12/2024 -2.169.018
   Bucket 1	-277.249	-216.252
   Including loans and advances to credit and similar institutions	-680	-8.647
   Including loans and advances to customers	-102.696	52.272
   Including off-balance sheet commitments	-20.812	-43.318
   Including debt instruments	-153.061	-216.560
   Including debt instruments at fair value through other comprehensive income (recyclable)
   Bucket 2	-99.786	-350.159
   Including loans and advances to credit and similar institutions	-	-
   Including loans and advances to customers	-99.687	-348.211
   Including off-balance sheet commitments	-99	-1.948
   Including debt instruments	-	-
   Including debt instruments at fair value through other comprehensive income (recyclable)
   Bucket 3	-1.876.935	-1.602.607
   Including loans and advances to credit and similar institutions	10.781	104
   Including loans and advances to customers	-1.842.532	-1.475.725
   Including off-balance sheet commitments	-45.184	-126.986
   Including debt instruments	-	-
   Including debt instruments at fair value through other comprehensive income (recyclable)

   2.9. CORPORATE INCOME TAX
   2.9.1. Current and deferred tax
   	Dec-25	Dec-24
   Current tax	1.759.973	1.406.755
   Deferred tax	2.669.784	2.610.179
   Current and deferred tax assets	4.429.757	4.016.934
   Current tax	2.423.616	2.036.293
   Deferred tax	1.292.471	1.226.720
   Current and deferred tax liabilities	3.716.088	3.263.012
   2.9.2. Net corporate income tax expense		(In thousand MAD)
   	Dec-25	Dec-24
   Current tax expense	-2.236.380	-1.995.842
   Net deferred tax expense for the year	-151.599	-8.329
   Net corporate income tax expense	-2.387.980	-2.004.171
   2.9.3. Effective tax rate		(In thousand MAD)
   	Dec-25	Dec-24
   Pre-tax income	7.902.057	6.980.277
   Corporate income tax expense	-2.387.980	-2.004.171
   Average effective tax rate	30,2%	28,7%
   		(In thousand MAD)

2. BUSINESS SEGMENT INFORMATION

   The Group is composed of four core business activities for accounting and financial information purposes:

   • Banking in Morocco : BANK OF AFRICA;

   • Asset management and Investment banking : BMCE Capital, BMCE Capital Bourse and BMCE Capital Gestion;

   • Specialised financial services : Salafin, Maghrébail, Maroc Factoring and Acmar;

   • International activities : BANK OF AFRICA Europe, BANK OF AFRICA UK, BOA Group, Banque de Développement du Mali.

   1. INCOME BY BUSINESS SEGMENT

      	BANKING IN MOROCCO	ASSET MANAGEMENT AND INVESTMENT BANKING	Dec-25 SPECIALISED OTHER FINANCIAL OPERATIONS SERVICES		INTERNATIONAL OPERATIONS	TOTAL
      Net interest income	6.759.245	79.865	750.115	42.023	6.691.724	14 322 972
      Fee income	1.559.375	296.555	45.524	1.247	2.278.893	4 181 595
      Net banking income	8.975.858	672.478	811.044	247.942	9.631.424	20 338 747
      General operating expenses and impairment	-3.780.317	-478.712	-300.670	-201.137	-4.544.672	-9 305 509
      Gross operating income	5.195.541	193.766	510.374	46.805	5.086.754	11 033 239
      Corporate income tax	-1.284.529	-118.791	-252.656	-229	-731.775	- 2 387 980
      Net income attributable to shareholders of the parent company	1.616.374	144.461	159.785	-11.756	1.904.688	3 813 552

      (In thousand MAD)

      	BANKING IN MOROCCO	ASSET MANAGEMENT AND INVESTMENT BANKING	Dec-24 SPECIALISED OTHER FINANCIAL OPERATIONS SERVICES		INTERNATIONAL OPERATIONS	TOTAL
      Net interest income	5.792.145	79.167	649.188	12.494	6.650.319	13 183 312
      Fee income	1.381.969	201.692	35.027	964	2.296.300	3 915 952
      Net banking income	7.959.750	457.482	699.470	222.722	9.377.151	18 716 574
      General operating expenses and impairment	-3.471.740	-341.990	-272.020	-159.724	-4.444.564	-8 690 038
      Gross operating income	4.488.010	115.491	427.450	62.998	4.932.588	10 026 536
      Corporate income tax	-948.382	-85.122	-193.960	-9.025	-767.683	-2 004 171
      Net income attributable to shareholders of the parent company	1.389.442	103.477	152.871	2.783	1.778.846	3 427 420

      (In thousand MAD)

   2. ASSETS AND LIABILITIES BY BUSINESS SEGMENT

   	BANKING IN MOROCCO	ASSET MANAGEMENT AND INVESTMENT BANKING	SPECIALISED FINANCIAL SERVICES	Dec-25 OTHER OPERATIONS	INTERNATIONAL OPERATIONS	TOTAL
   TOTAL ASSETS	275.524.795	1.749.252	18.369.367	3.254.894	138 779 480	437 677 787
   ASSETS
   Financial assets at fair value through other comprehensive income	5 440 268	60 044	33 215	5 305	2 419 918	7 958 751
   Loans and advances to customers at amortised cost	154 452 861	0	17 220 137	2 655 196	56 521 162	230 849 356
   Financial assets at fair value through profit or loss	57 759 758	177 584	861	0	2 312 254	60 250 457
   Securities at amortised cost	10 934 686	0	0	0	35 579 971	46 514 657
   LIABILITIES
   Amounts due to customers	175 354 439	0	610 393	356 939	99 519 502	275 841 273
   Shareholder's Equity	22 900 932	674 975	1 779 645	-168 642	15 239 527	40 426 437

   (In thousand MAD)

   	BANKING IN MOROCCO	ASSET MANAGEMENT AND INVESTMENT BANKING	Dec-24 SPECIALISED OTHER FINANCIAL OPERATIONS SERVICES		INTERNATIONAL OPERATIONS	TOTAL
   TOTAL ASSETS	269.901.053	1.434.232	17.259.124	1.241.680	133 442 729	423 278 818
   ASSETS
   Financial assets at fair value through other comprehensive income	5 276 652	17 481	33 215	5 305	2 331 300	7 663 954
   Loans and advances to customers at amortised cost	149 941 437	0	16 160 793	794 100	58 720 713	225 617 042
   Financial assets at fair value through profit or loss	58 949 548	112 188	861	0	1 618 816	60 681 413
   Securities at amortised cost	10 984 350	0	0	0	33 945 382	44 929 732
   LIABILITIES
   Amounts due to customers	162 928 923	0	521 881	289 404	93 887 516	257 627 724
   Shareholder's Equity	21 864 088	578 809	1 672 785	-131 620	12 830 635	36 814 698

   (In thousand MAD)

3. NOTES TO THE BALANCE SHEET FOR THE YEAR ENDED 31 DECEMBER 2025

   1. CASH AND BALANCES AT CENTRAL BANKS, THE PUBLIC TREASURY AND POSTAL CHEQUE CENTRE

      	Dec-25	Dec-24
      CASH AND BALANCES	5.945.385	6.705.309
      CENTRAL BANKS	18.151.411	14.460.341
      PUBLIC TREASURY	6.535	20.451
      POSTAL CHEQUE CENTRE	4.754	4.724
      CENTRAL BANKS, PUBLIC TREASURY, POSTAL CHEQUE CENTRE	18.162.700	14.485.515
      Cash and balances at central banks, the Public treasury and postal cheque centre	24.108.086	21.190.824
      		(In thousand MAD)

   2. FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS

      	Dec-25			Dec-24
      	Financial assets/liabilities held for trading purposes	Other assets/ liabilities at fair value through profit or loss	Total	Financial assets/liabilities held for trading purposes	Other assets/ liabilities at fair value through profit or loss	Total

      FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS

      Negotiable debt securities	42.342.210	- 42.342.210		45.397.648	- 45.397.648
      Treasury bills and other marketable assets mobilised with central banks	40.837.143	40.837.143		43.775.465	43.775.465
      Other negotiable debt securities	1.505.067		1.505.067	1.622.183		1.622.183
      Bonds	4.835.429	-	4.835.429	4.525.389	-	4.525.389
      Government bonds	1.915.312		1.915.312	2.195.938		2.195.938
      Other bonds	2.920.117		2.920.117	2.329.451		2.329.451
      Equities and other variable income securities	10.583.600	2.468.478	13.052.077	9.028.819	1.720.743	10.749.562
      Repurchase agreements	-		-	-		-
      Loans	-		-	-		-
      To credit institutions			0			0
      To corporate customers			0			0
      To retail customers			0			0
      Financial derivative instruments for trading purposes	20.741	0	20.741	8.814	0	8.814
      Currency derivative instruments	20.741		20.741	8.814		8.814
      Interest rate derivative instruments			0			0
      Equity derivative instruments			0			0
      Credit derivative instruments			0			0
      Other derivative instruments			0			0
      TOTAL FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS	57.781.980	2.468.478 60.250.458		58.960.670	1.720.743	60.681.413
      Of which securities on loan Excluding equities and other variable income securities

      FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS

      Borrowed securities and short selling Repurchase agreements

      Borrowings

      Credit institutions Corporate customers Debt securities

      Financial derivative instruments for trading purposes

      Currency derivative instruments Interest rate derivative instruments Equity derivative instruments Credit derivative instruments Other derivative instruments

      TOTAL FINANCIAL LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS

(In thousand MAD)

other comprehensive income

institutions

(In thousand MAD)

other comprehensive income

institutions

(In thousand MAD)

(In thousand MAD)

FINANCIAL DATA PUBLISHED IN ACCORDANCE WITH LOCAL ACCOUNTING STANDARDS BY THE MAIN COMPANIES ACCOUNTED FOR USING THE EQUITY METHOD

31-Dec-25 (in thousand MAD) Level 1 Level 2 Level 3 Total

- Financial assets at fair

57.781.980 57.781.980

ASSETS

value for trading purposes

Loans and advances

- Financial assets at fair val-

2.468.478 2.468.478

to credit and similar

34.908.498 34.908.498

ue through profit or loss Financial assets at fair value

through other comprehensive 1.362.124 6.596.626 7.958.751

institutions Loans and advances to

customers 230.826.548 230.826.548

income

Securities at amortised

46.159.490 46.159.490

- Debt instruments at fair

value through other compre-

779.247 779.247

cost

LIABILITIES

hensive income (recyclable)

- Equity instruments at fair

Amounts due to credit and similar

71.016.843 71.016.843

value through other compre-

582.877 6.596.626 7.179.503

institutions

hensive income (non-recy-

Amounts due to

275.841.273 275.841.273

clable) customers

FINANCIAL LIABILITIES

Debt securities

12.333.680 12.333.680

Financial instruments at

fair value through profit or loss held for trading

purposes Financial instruments

measured using the fair value option through

profit or loss

issued Subordinated debt 12.088.543 12.088.543

(In thousand MAD)

31-Dec-24 (in thousand MAD) Level 1 Level 2 Level 3 Total

ASSETS

Loans and advances

Derivative hedging

to credit and similar

35.104.343 35.104.343

instruments

(In thousand MAD)

institutions Loans and advances to

customers 225.400.817 225.400.817

Securities at amortised

44.473.985 44.473.985

cost

LIABILITIES

Amounts due to

credit and similar 80.247.308 80.247.308

institutions

Amounts due to

257.627.725 257.627.725

customers

Debt securities

11.723.938 11.723.938

issued Subordinated debt 12.145.994 12.145.994

(In thousand MAD)

Cash and balances Public treasury and

institutions at

and similar institutions customers

(In thousand MAD)

1. FINANCING ANG GUARANTEE COMMITMENTS

   21.544.178

   23.368.575

   Financing commitments given

   Dec-24

   Dec-25

   1. FINANCIAL COMMITMENTS

      To credit institutions 1.231.521 648.513

      To customers 22.137.054 20.895.664

      Credit lines opened

      Financing commitments received 2.890.579 1.643.375

Other commitments given to customers

From credit institutions 2.890.579 1.643.375

From customers - -

(In thousand MAD)

» Financing commitments given to credit and similar institutions

This entry relates to commitments to make liquidity facilities available to other credit institutions such as refinancing agreements and back-up commitments on securities issuance.

» Financing commitments given to customers

This entry relates to commitments to make liquidity facilities available to customers such as confirmed credit lines and commitments on securities issuance.

» Financing commitments received from credit and similar institutions

This entry relates to financing commitments received from credit and similar institutions such as refinancing agreements and backup commitments on securities issuance.

1. SALARY AND EMPLOYEE BENEFITS

   1. DESCRIPTION OF CALCULATION METHOD

      Employee benefits relate to long-service awards and end-of career bonuses.

      The method used for calculating the liability relating to both these benefits is the "projected unit credit" method as recommended by IAS 19.

      » Caisse Mutualiste Interprofessionnelle Marocaine (CMIM) scheme

      The Caisse Mutualiste Interprofessionnelle Marocaine (CMIM) is a private mutual insurance company. The company reimburses employees for a portion of their medical, pharmaceutical, hospital and surgical expenses. It is a post-employment scheme providing medical cover for retired employees.

      The CMIM is a multi-employer scheme. As BANK OF AFRICA is unable to determine its share of the overall liability (as is the case for all other CMIM members), under IFRS, expenses are recognised in the year in which they are incurred. No provision is recognised in respect of this scheme.

   2. SYNTHESIS AND DESCRIPTION OF PROVISIONS OF EXISTING SCHEMES

      Dec-25 Dec-24

      1. Provisions in respect of post-employment and other longterm benefits provided to employees

         1. GUARANTEE COMMITMENTS

         Provision for retirement and similar benefits

         Provision for special long service award

         444.833 433.602

         	Dec-25	Dec-24		Other provisions
         Guarantee commitments given	42.348.845	35.495.303		TOTAL 444.833 433.602
         To credit institutions	13.433.636	10.688.554		(In thousand MAD)
         To customers	28.915.209	24.806.749

         Sureties provided to administrative and tax

         authorities and other sureties

         Other guarantees given to customers

         Guarantee commitments received 137.429.042 114.457.451

         From credit institutions 133.599.573 110.367.054

         NB : the provision for employee benefits measured in accordance with IAS 19 is recognised in the «Provisions for contingencies and charges» caption of the liabilities item.

         From government and other guarantee institutions

         3.829.469 4.090.397

         (In thousand MAD)

      2. Basic assumptions underlying calculations

         The following table provides an analysis of sensitivity to the two main actuarial assumptions used to calculate the cost of benefit

         » Guarantee commitments given to credit and similar institutions

         This entry relates to commitments to assume responsibility for an obligation entered into by a credit institution if the latter is not satisfied with it. This includes guarantees, warranties and other guarantees given to credit and similar institutions.

         » Guarantee commitments given to customers

         This entry relates to commitments to assume responsibility for an obligation entered into by a customer if the latter is not satisfied with it. This includes guarantees given to government institutions and real estate guarantees, among others, real estate guarantees, etc.

         » Guarantee commitments received from credit and similar institutions

         This entry includes guarantees, warranties and other guarantees received from credit and similar institutions.

         » Guarantee commitments received from the State and other organisations

         This entry relates to guarantees received from the State and other organisations.

         schemes (post-employment benefits and long service awards) at 31 December 2025:

         End-of-career bonus

         Rate variation Rate variation

         -50 pb +50 pb

         Discount rate 8.626 -8.008

         Wage growth -9.518 10.224

         Long-service award Rate variation Rat -50 pb		e variation +50 pb
         Discount rate	9.966	-9.386
         Wage growth	-13.375	14.177
         Economic assumptions		Dec-25
         Discount rate		3,71%
         Long-term wage growth (inflation included)		2%
         Growth in employer's social security contributions		12,11%

         Demographic assumptions

         Retirement terms Voluntary resignation

         Retirement age 60

         Mortality table PM 60/64 - PF 60/64

         The discount rate is based on secondary market Treasury benchmark bond yields - Duration: about 22 years.

      3. COST OF POST-EMPLOYMENT BENEFIT SCHEMES

         Dec-25 Dec-24

Standard expense for the period 4.386 180 Interest expense -15.617 -14.209 Funds' expected rate of return Additional benefits

Other 36.961

Net cost for the period -11.231 22.932

Of which expense related to retirement and

similar benefits

Other

(In thousand MAD)