HALF YEAR FINANCIAL REPORT
30 JUNE 2025
BANK OF AFRICA
HALF YEAR FINANCIAL REPORT
30 June 2025BANK OF AFRICA
140, Avenue Hassan II
PO. BOX 20 039 Casa Principale
Phone: 05 22 20 04 92 / 96
Fax: 05 22 20 05 12
Capital: 2 157 863 330 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.bmcetrade.com
BMCE CAPITAL WEBSITE: https://www.bmcecapital.com
Sommaire
HALF YEAR FINANCIAL STATEMENTS AS OF 30 JUNE 2025 3
BANK OF AFRICA INTRODUCTION 6
CONSOLIDATED STATEMENTS AUDITORS' REPORT 7
CONSOLIDATED STATEMENTS AND EXPLANATORY NOTES
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 8
Consolidated balance sheet
Consolidated income statement
Statement of changes in shareholders' equity
Statement of net income and gains and losses recognised directly in other comprehensive income
1 5. Statement of cash flows at 30 June 2025
1.6. Summary of accounting policies applied by the group
NOTES TO THE INCOME STATEMENT FOR THE HALF YEAR ENDED 30 JUNE 2025 21
Net interest income
Net fee income
Net gains on financial instruments at fair value through profit or loss
Remuneration from equity instruments through other comprehensive income (non-recyclable)
Income and expenses from other activities
General operating expenses
Cost of risk
Net gains and losses on other assets
Corporate income tax
BUSINESS SEGMENT INFORMATION 25
Earnings by business segment
Assets and liabilities by business segment
NOTES TO THE BALANCE SHEET FOR THE HALF YEAR ENDED 30 JUNE 2025 27
Cash and balances at central banks, the public treasury and postal cheque centre
Financial assets and liabilities at fair value through profit or loss
Financial assets at fair value through other comprehensive income
Securities at amortised cost
Interbank transactions, amounts due to and from credit institutions
Amounts due to and from customers
Debt securities, subordinated debt and special guarantee funds
Current and deferred tax
Accrued income, other assets and liabilities
Investments in companies accounted for using the equity method
Property, plant and equipment and intangible assets used in operations, investment property
Goodwill
Provisions, contingent liabilities and contingent assets
FINANCING AND GUARANTEE COMMITMENTS 34
Financial commitment
Guarantee commitments
SALARY AND EMPLOYEE BENEFITS 34
Description of calculation method
Synthesis and description of provisions of existing schemes
ADDITIONAL INFORMATION 35
Changes in share capital and earnings per share
Scope of consolidation
Directors' remuneration
Related party
NOTE CONCERNING RISKS 67
Risk management policy
Credit risk
Rating model
Credit risk control and monitoring procedure
Country risk
Description of the policy for managing liquidity and interest rate risks
Market risk
Operational risk
ICAAP system
Internal crisis recovery plan (PRCI)
Corporate and social responsibility
Measurement of capital adequacy
2
ir-bankofafrica.ma
RESULTS HALF-YEAR30 JU N E 2025
STEADY GROWTH IN FINANCIAL AND BUSINESS PERFORMANCE
BANK OF AFRICA - BMCE Group's Board of Directors, chaired by Mr Othman BENJELLOUN, met Friday 26 September 2025 at the Bank's head office in Casablanca. It reviewed the business activity of the Bank and of the Group for first half 2025 and drew up the financial statements for the period in question.
The first half 2025 financial report is published on the website https://www.ir-bankofafrica.ma
CONSOLIDATED ACTIVITY
-MAD MILLIONS-
PARENT ACTIVITY
-MAD MILLIONS-
NET INCOME
ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT COMPANY
+16%
1 942 2 251
NET BANKING INCOME
+8%
9 572 10 349
NET INCOME
+28%
1 400 1 789
NET BANKING INCOME
+20%
4 538 5 456
June 2024 June 2025
June 2024 June 2025
June 2024 June 2025
June 2024 June 2025
Net income attributable to shareholders of the parent company grew by 16% to MAD 2.3 billion as of 30 June 2025.
Consolidated net banking income increased by 8% to MAD 10.3 billion as of 30 June 2025.
BANK OF AFRICA S.A.'s net income increased by a notable 28% to MAD 1.8 billion as of 30 June 2025.
The Bank's net banking income reached MAD 5.5 billion, a sharp year-on-year increase of 20%.
CUSTOMER LOANS
-excluding resales-
+2%
223 291 226 746
CUSTOMER DEPOSITS
-excluding repos-
+2%
256 445 261 477
CUSTOMER LOANS
-excluding resales-
+2.3%
141 693 144 893
CUSTOMER DEPOSITS
-excluding repos-
+4%
159 350 165 291
Dec 2024 June 2025
Dec 2024 June 2025
Dec 2024 June 2025
Dec 2024 June 2025
Consolidated customer loans, excluding resales, rose by 2% to MAD 227 billion.
Consolidated customer deposits, excluding repos, increased by 2% to MAD 261 billion from MAD 256 billion as of 31 December 2024.
BANK OF AFRICA S.A.'s customer loans, excluding resales, rose by 2.3% to MAD 145 billion in first half 2025.
Customer deposits at the parent company level (excluding repos) rose by 4% to MAD 165 billion, as business momentum remained solid, with non-interest-bearing deposits up by 6% as of 30 June 2025.
BANK OF AFRICA's Board of Directors paid tribute to its Management and Human Capital for their dedication, under Chairman Othman Benjelloun's leadership, to ensuring that the pan-African group remains on a solid growth trajectory across all the countries in which it operates. The Board also extends its gratitude to shareholders, customers and stakeholders for their continued trust.
BANK OF AFRICA
Public limited company with a share capital of MAD 2,157,863,330 - Head office: 140, Avenue Hassan II
Approved credit institution by decree of the Minister of Finance and Investment No. 2348-94 of 23 August 1994 - Casablanca Trade Register No. 27129
ir-bankofafrica.ma
STRONG EARNINGS GROWTH DRIVEN BY SUSTAINED BUSINESS MOMENTUM
THE GROUP
Consolidated net banking income rose by 8% to MAD 10.3 billion, fuelled by growth at the core business (net interest income +8%, fee income +2.3%) as well as a very solid 54.2% increase in income from market operations.
Gross operating income grew by 12% to MAD 6.1 billion as of 30 June 2025.
Net income attributable to shareholders of the parent company grew by double digits, rising by 16% on a rolling year basis to MAD 2.3 billion at end-June 2025, with all components contributing improved performances.
The digital adoption rate among BANK OF AFRICA customers rose to 70.4% versus 63.7% as of 30 June 2024. In all, 93% of simple transactions (transfers, cash availability and bill payment) were conducted via this channel.
Overall transfers by Moroccan Global Citizens conducted through BANK OF AFRICA were up by 21% to MAD 2.8 billion as of 30 June 2025, versus MAD 2.3 billion a year earlier, with accounts opened by Moroccans living abroad growing by 17% relative to first half 2024.
New business relations with SMEs were up by 19.3% relative to the same period of 2024, with a net 114% increase in new financing packages granted.
IN AFRICA
Net banking income at BOA Holding rose by 9% to EUR 422 million in first half 2025, up from EUR 388 million in June 2024, notably thanks to a 13% increase in net interest income.
General operating expensesincreased by just 7% to EUR 189 million, allowing the BOA Holding cost-to-income ratio to improve to 44.7% as of 30 June 2025 from 45.5% in June 2024.
The cost of risk rose by 26% versus June 2024 to EUR 35 million, putting the cost-of-risk ratio at 1.3%.
Net income attributable to shareholders of the parent company grew by 16% to reach EUR 119 million as of 30 June 2025.
The consolidated cost-to-income ratio improved from 43.6% as of 30 June 2024 to 41.5% in June 2025, in keeping with a downward trend that has accelerated in the past six years.
Consolidated total assets held stable at MAD 423 billion, buoyed by a 2% rise in consolidated customer loans (excluding resales) to MAD 227 billion and a 2% increase in customer deposits (excluding repos) to MAD 261 billion.
Shareholders' equity, Group share rose by 4% to MAD 30.2 billion, with the issuance of a MAD 1 billion perpetual subordinated bond with a loss-absorption and coupon payment cancellation provision.
The consolidated cost of risk was down by 8% to MAD 1.6 billion as of 30 June 2025.
The Group coverage ratio increased to 69.7% as of 30 June 2025 from 68.5% in December 2024.
IN MOROCCO
Net banking income at BANK OF AFRICA S.A. rose by 20% to MAD 5.5 billion, driven by the core business, which saw an 18% jump in net interest income and a 13% rise in fee income, in addition to 17% growth in income from market operations.
GREATER PROXIMITY TO CUSTOMERS AND SOLID SUPPORT PROVIDED TO THE MOROCCAN AND AFRICAN ECONOMIES
Contribution to the financing of the Kenitra-Marrakech High-Speed Rail line, a MAD 48 billion strategic project that has mobilised a number of financial players in Morocco.
Launch by BANK OF AFRICA of 'Damane Mandat Express', a multichannel solution for making cash available quickly, intended to expand access to transfers across the country.
Adoption by BANK OF AFRICA of Kyriba's platform, Kyriba being a global leader in liquidity management, to digitalise and harmonise the financing of supply chains across the 20 African countries in which the Group operates.
Rollout of a new version of the platform dedicated to expatriate Moroccans featuring an optimised customer onboarding process.
In partnership with Mastercard, launch in July 2025 of the 'Elevator Pitch' programme offering those with projects in Morocco a space for visibility, valorisation and acceleration, in keeping with BANK OF AFRICA's commitment to supporting innovation and entrepreneurship.
Organisation by BANK OF AFRICA and its subsidiaries of a series of regional business meetings in Fez, Tangier and Agadir to help give SMEs easier access to credit and risk-sharing instruments as well as technical assistance adapted to the specific issues companies face in each region.
Organisation by BANK OF AFRICA, in coordination with the Fez Regional Investment Centre, of a forum specifically for customers who are Moroccan expatriates from the Saidia region, one of a series of events organised to promote 'MDM Invest' in different regions. This tour is part of a broader effort to make Moroccans living abroad more aware of local investment opportunities, to present the advantages of the new Investment Charter, and to provide financial support adapted to their projects.
Significant impact of BlueSpace incubators, a BANK OF AFRICA initiative designed to bring a variety of leading actors together through partnerships to promote entrepreneurship and create a point of convergence between academia, institutions and entrepreneurial undertakings. A total of 15,500 young people have been educated about the initiative and 150 projects incubated.
The Bank's net income saw double-digit growth of +28% to MAD 1.8 billion.
The Group continued its operational efficiency, with general operating expenses at BANK OF AFRICA S.A. rising by a relatively modest 5% to MAD 1.9 billion. The cost-to-income ratio improved considerably, from 40.1% as of 30 June 2024 to 35.1% as of 30 June 2025, with robust revenue growth also contributing to that result.
Customer loans in Morocco, excluding resales, were up 2.3% relative to 31 December 2024, reaching MAD 145 billion as of 30 June 2025, mainly on the back of equipment loans (+13%), at a time when financing granted to businesses was seeing dynamic growth.
4
The coverage ratio improved sharply to 65% as of 30 June 2025, compared with 64.1% as of 31 December 2024 and 63% in June 2024.
Wrap-up of BMCE Capital's 'Cap'AI by BK' programme with the announcement of the award winners supported through this initiative dedicated to innovation in the field of artificial intelligence.
Organisation by BMCE Capital of the 4th edition of its Annual Investor Conference, a flagship event designed to create connections between African markets and international institutional investors.
Signature by BOA Benin and BOA Madagascar of guarantee agreements with the African Development Bank, respectively: a EUR 15 million guarantee to strengthen trade finance activities and support Beninese enterprises, and a USD 25 million guarantee to bolster industrialisation and food security in Madagascar.
Organisation of the 3rd edition of the 'BOA x Femmes Entrepreneures' meetings by BOA Togo, highlighting women's contributions to the economy and the central role they play in African entrepreneurship.
Fee Income
13%
49%
Net Interest Income
23%
Income From Market Operations
15%
Miscellaneous
NET BANKING INCOME
AT 30 JUNE 2025 BY BUSINESS LINE
SubBsaharan Africa
43%
Morocco 54%
Europe
3%
NET INCOME ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT COMPANY
AT 30 JUNE 2025 BY GEOGRAPHICAL REGION
ONGOING COMMITMENT TO PROMOTING THE DEVELOPMENT OF COMMUNITIES AND EDUCATION
Tribute paid to the late Dr Leila Mezian Benjelloun at the Alhambra in Grenada during the inauguration of the Amazigh Space, a cultural centre devoted to preserving and showcasing Amazigh heritage in a venue dedicated to intercultural dialogue, keeping her work and influence alive. Dr Mezian Benjelloun was also honoured in Brussels by Belgian NGO Actions@Village at a ceremony that brought together emblematic figures from the worlds of culture and education.
Continued support from BMCE Bank Foundation for education through its Medersat.com programme, which benefited 11,559 students during the 2024-2025 school year. A total of 35,800 pupils across the Medersat.com network have benefited from the programme since it was launched, with a pass rate of 99.65%. Meanwhile, the 14th academic year of the Medersat.com baccalaureate (high school) programme was completed with a pass rate of 91%. Within this cohort, 65.65% were female.
Renewal of major BMCE Bank Foundation projects, particularly the 'Bibliotobiss' cultural caravan, a digital mobile library that has reached 14,867 students since it was launched, a feat that has drawn the attention of prestigious media outlets in Morocco and abroad, as well as the teaching of robotics programming and artificial intelligence, which remains a pillar of the Foundation's strategy for educational innovation.
Accreditation of two additional schools as 'Eco Ecoles' in 2024-2025, lifting the total number of schools that have earned the label to 42.
AWARDS AND CERTIFICATIONS
Double award for BANK OF AFRICA, which was named 'Morocco's Best Bank' and 'Morocco's Best Bank for SMEs' at the Euromoney Awards for Excellence.
BANK OF AFRICA recognised as the 'Most Active Partner Bank in Morocco' in 2024 by the European Bank for Reconstruction and Development (EBRD) in the context of the latter's Trade Facilitation Program.
ISO 9001:2015 certification awarded by Bureau Veritas to BANK OF AFRICA for its Global Transaction Banking services, a first for a Moroccan bank, covering the cash management, trade finance and digital operations conducted under the 'GTB-CIB by BOA' brand, which takes a proactive approach to offering large enterprises and SMEs a structured and digitalised transactional services offering.
Successful renewal of BANK OF AFRICA's ISO 37001 certification, 2025 version, for its Anti-Corruption Management System (ACMS), reflecting its ongoing commitment to making integrity, transparency and exemplarity central to all banking activities as well as to its trust-based relations with partners.
Double award for BMCE Capital Gestion in the 'MENA Markets Fund' and 'MENA Markets Domestic Funds' categories during the London Stock Exchange Group (LSEG) Lipper MENA Markets 2025 Fund Awards, recognising the quality of its asset management in markets in the MENA region.
BANK OF AFRICA UK recognised in July 2025, during the Business Chamber Awards 2025, as the African Business of the Year in recognition of the key role it plays in financing African economies, its commitment to operational excellence, and its growing influence beyond the United Kingdom.
GROUP PROFILE BANK OF AFRICA
~15,000
EMPLOYEES
32
COUNTRIES
~6.6
MILLION CUSTOMERS
~2,000
POINTS OF SALE
CLIMATE TRANSITION AND FINANCIAL INCLUSION AT THE HEART OF THE GROUP'S SUSTAINABILITY STRATEGY
Development of a robust climate strategy organised around major projects, notably the updating of the carbon footprint, the mapping of climate risksand their integration into credit management, which turns regulatory requirements into real levers of performance.
Implementation, through BANK OF AFRICA Academy and in partnership with Bureau Veritas, of a certification training programme designed for the sales team. This initiative is part of the broader strategy of building competences and operational excellence in order to better assist businesses, notably SMEs, with their low-carbon transition plans.
Expansion of financial inclusion to include new groups, notably persons with disabilities, in accordance with Bank Al-Maghrib guidelines. A total of 114 branches have been made accessible and a gradual integration of digital access functionalities is envisaged for the ATM network.
Series of strategic partnerships forged by BANK OF AFRICA Group subsidiary Damane Cash with Orange Maroc, Mastercard, Express Relais and a variety of Fintech specialists to expand access to payment services thanks to network interoperability and the development of an offering that is more inclusive and accessible, leveraging both Damane Cash's extensive network across the country and the expertise of these strategic partners. Such close cooperation with Fintech operators also furthers financial inclusion, supports the digital transition and improves customers' e-commerce experience in Morocco.
BANK OF AFRICA is a leading pan-African financial group with an extensive portfolio of brands and subsidiaries. The Group's universal banking business model encompasses a range of business lines including commercial banking, investment banking and specialised financial services such as leasing, factoring, consumer credit and participatory banking.
FINANCIAL COMMUNICATION website: ir-bankofafrica.ma - Tel: +212 522 462 810
BMCE BANK FOUNDATION KEY FIGURES
69
Medersat.com schools, including 6 in sub-Saharan Africa: 2 in Senegal, 1 in Congo Brazzaville, 1 in Mali, 1 in Rwanda and 1 in Djibouti
42
Schools awarded the 'Eco-Ecole' label
535
Teachers and educators, 52% of whom
are women
35,800
Benefiting pupils, 50% of whom are girls
17
Educational supervisors
3,780
Students benefiting from robotics teaching
4,179
High school graduates from Medersat.com network schools
14,867
Pupils who have benefited from the 'Bibliotobiss' cultural caravan
RATINGS
BA1, STABLE OUTLOOK
ESG SCORE B+
74/100
BB, STABLE OUTLOOK
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 632 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.
BANK OF AFRICA 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
In January 2019, BANK OF AFRICA created a new subsidiary covering all services and banking processing in order to improve the quality of its services.
BANK OF AFRICA's international vocation can be traced back to its origins as a bank specialising in foreign trade. 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 BMCE International in London, Paris and Madrid, 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 BMCE 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, sizeable 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 15 countries. BANK OF AFRICA has since increased its stake in the pan-African bank to 72.4%.
7, Boulevard Driss Slaoui Casablanca
119, Bd Abdelmoumen - Fth Floor, N°39 20360 - Casablanca - Morocco
BANK OF AFRICA BMCE GROUP STATUTORY AUDITORS' LIMITED REVIEW CERTIFICATE
REGARDING THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS AT 30 JUNE 2025
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 six-month period from 1 January 2025 to 30 June 2025. These interim financial statements show consolidated shareholders' equity of MAD 37.941.547 K, including consolidated net income of MAD 3.228.574 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 reasonable 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.
As of 30 June 2025, BANK OF AFRICA S.A. possesses non-operating real estate assets, acquired through dation-in-payment, totalling MAD 1 billion, with uncertainty over 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 30 June 2025, in accordance with international accounting standards (IAS/IFRS).
Casablanca, 26 September 2025
The Statutory Auditors
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
CONSOLIDATED BALANCE SHEET
The consolidated financial statements at 30 June 2025 were approved by the board of directors on 27 September 2025.
ASSETS UNDER IFRS
Note
30/06/2025
31/12/2024
Cash and balances at central banks, the Public treasury and postal cheque centre
4.1
22.235.375
21.190.824
Financial assets at fair value through profit or loss
-
-
- Financial assets held for trading purposes
4.2
63.227.375
58.960.670
- Financial assets at fair value through profit or loss
4.2
2.584.962
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
781.932
713.984
- Equity instruments at fair value through other comprehensive income (non-recyclable)
4.3
6.761.695
6.949.970
Securities at amortised cost
4.4
46.087.329
44.929.732
Loans and advances to credit and similar institutions at amortised cost
4.5
32.789.784
35.151.660
Loans and advances to customers at amortised cost
4.5
218.976.101
225.617.043
Revaluation adjustment for portfolios hedged against interest rate risk
-
-
Financial investments from insurance operations
-
-
Current tax assets
4.8
1.891.717
1.406.755
Deferred tax assets
4.8
2.623.746
2.610.179
Prepayments, accrued income and other assets
4.9
10.027.081
8.395.221
Non-current assets held for sale
-
-
Investments in companies accounted for using the equity method
4.10
1.029.914
1.008.702
Investment property
4.11
3.286.617
3.314.403
Property, plant and equipment
4.11
8.964.736
8.693.686
Intangible assets
4.11
1.711.215
1.597.149
Goodwill
4.12
1.018.097
1.018.097
TOTAL ASSETS UNDER IFRS
423.997.674
423.278.818
(In thousand MAD)
LIABILITIES UNDER IFRS
Note
30/06/2025
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
11.555.350
11.723.938
Amounts due to credit and similar institutions
4.5
74.326.919
80.247.308
Amounts due to customers
4.6
261.866.106
257.627.725
Revaluation adjustment on portfolios hedged against interest rate risk
-
-
Current tax liabilities
4.8
2.421.029
2.036.293
Deferred tax liabilities
4.8
1.295.233
1.226.720
Accruals, deferred income and other liabilities
4.9
21.599.273
19.579.349
Liabilities related to non-current assets held for sale
-
-
Liabilities under insurance contracts
-
-
Provisions
4.13
1.974.277
1.876.793
Subsidies - public funds and special guarantee funds
-
-
Subordinated debt
4.6
11.017.941
12.145.994
TOTAL LIABILITIES
386.056.127
386.464.120
Shareholders' equity
Share capital and related reserves
22.176.416
21.375.867
Consolidated reserves
-
-
- Attributable to shareholders of the parent company
4.927.587
3.449.115
- Non-controlling interests
6.238.010
5.642.190
Gains and losses recognised directly in equity
-
-
- Attributable to shareholders of the parent company
873.978
877.045
- Non-controlling interests
496.982
494.375
Net income for the period
-
-
- Attributable to shareholders of the parent company
2.251.235
3.427.420
- Non-controlling interests
977.339
1.548.686
TOTAL CONSOLIDATED SHAREHOLDERS' EQUITY
37.941.547
36.814.698
TOTAL LIABILITIES UNDER IFRS
423.997.674
423.278.818
(In thousand MAD)
1.2. CONSOLIDATED INCOME STATEMENT
Note
juin-25
juin-24
Interest and similar income
10.505.110
10.125.985
Interest and similar expenses
-3.544.288
-3.701.499
Net interest income
2,1
6.960.822
6.424.486
Fees received
2.365.033
2.290.113
Fees paid
-389.793
-359.911
Fee income
2,2
1.975.240
1.930.202
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
1.030.021
616.090
Net gains or losses on trading assets/liabilities
921.183
546.674
Net gains or losses on other assets/liabilities at fair value through profit or loss
108.838
69.416
Net gains or losses on financial instruments at fair value through other comprehensive income
2,4
212.125
189.252
Net gains or losses on debt instruments through other comprehensive income
-
Remuneration of equity instruments (dividends) through other comprehensive income (non-recyclable)
212.125
189.252
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
478.864
686.813
Expenses from other activities
2,5
-308.371
-275.237
Net banking income
10.348.702
9.571.606
General operating expenses
2.6
-3.757.660
-3.714.958
Depreciation, amortisation and impairment of intangible assets and property, plant and equipment
2.6
-540.135
-459.988
Gross operating income
6.050.907
5.396.660
Cost of risk
2,7
-1.642.489
-1.785.197
Operating income
4.408.418
3.611.463
Share of earnings of companies accounted for using the equity method
71.537
87.497
Net gains or losses on other assets
2,8
-3.025
-2.955
Changes in value of goodwill
Pre-tax income
4.476.930
3.696.005
Corporate income tax
2.9
-1.248.356
-965.540
Income net of tax from discontinued operations
Net income
3.228.574
2.730.465
Non-controlling interests
977.339
788.082
Net income attributable to shareholders of the parent company
2.251.235
1.942.383
(In thousand MAD)
STATEMENT OF CHANGES IN SHAREHOLDER'S EQUITY
CHANGES IN EQUITY 30/06/2025
Capital
Réserves liées au capital
Actions propres
Réserves et résultats consolidés
Total d'actifs
et passifs comptabilisés directement en capitaux propres
Capitaux propres part Groupe
Intérêts minoritaires
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
800.549
-800.549
0
0
Share-based payment plans
0
0
Operations on treasury stock
0
0
Dividends
-1.085.682
-1.085.682
-907.588
-1.993.270
Net Income
2.251.235
2.251.235
977.339
3.228.574
Changes in assets and liabilities recognised directly in equity
58.394
58.394
58.394
Transfer to earnings
-105.700
-105.700
-72.030
-177.730
Unrealized or deferred gains or losses 0
0
0
0
-47.306
-47.306
-72.030
-119.336
Change in the scope of consolidation
0
0
0
Others
-18.478
-18.478
29.358
10.880
Ending balance of Shareholder's Equity 2.157.863
20.018.553
0
9.081.715
-1.028.915
30.229.216
7.712.330
37.941.546
Equity 31.12.2023
01.01.2024
31.12.2024
01.01.2025
30.06.2025
juin-25 juin-24
STATEMENT OF NET INCOME AND GAINS AND LOSSES RECOGNISED DIRECTLY IN OTHER COMPREHENSIVE INCOME
Net income 3.228.574 2.730.465
Gains or losses recognised directly in other comprehensive income that will be subsequently reclassified
under profit or loss
-177.730 -258.428
Exchange differences -177.730 -258.428
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
58.394
141.517
Actuarial gains or losses on defined benefit plans
Items recognised at fair value through other comprehensive income (non-recyclable)
58.394
141.517
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
-119.336
-116.911
Net income and gains or losses recognised directly through other comprehensive income
3.109.238
2.613.554
Attributable to shareholders of the parent company
2.203.929
1.953.189
Non-controlling interests
905.309
660.365
(In thousand MAD)
1.5. STATEMENT OF CASH FLOWS AT 30 JUNE 2025
NOTE
30/06/2025
31/12/2024
Pre-tax income
4.476.930
6.980.278
+/- Net depreciation, amortisation and impairment of intangible assets and property, plant
and equipment
2,6
415.600
726.092
+/- Net impairment of goodwill and other non-current assets
-
-
+/- Net impairment of financial assets
2,7
-77.939
77.635
+/- Net provisions
2,7
1.523.565
2.228.797
+/- Share of earnings of companies accounted for using the equity method
4.10
-71.537
-140.597
+/- Net gain/loss from investing activities
-322.927
378.610
+/- Net gain/loss from financing activities
-
-
+/- Other movements
-1.295.851
-651.345
Total non-cash items included in pre-tax income and other adjustments
170.911
2.619.192
+/- Flows related to transactions with credit and similar institutions
-9.478.604
85.537
+/- Flows related to transactions with customers
10.630.043
841.616
+/- Flows related to other transactions affecting financial assets or liabilities
-6.507.518
-4.460.297
+/- Flows related to other transactions affecting non-financial assets or liabilities
2.277.704
2.797.787
+/- Taxes paid
-1.427.822
-1.855.381
Net increase/decrease in assets and liabilities from operating activities
-4.506.198
-2.590.738
Net cash flow generated by operating activities
141.643
7.008.732
+/- Flows related to financial assets at fair value through other comprehensive income
268.587
-58.700
+/- Flows related to investment property
4.529
-2.352
+/- Flows related to plant, property and equipment and intangible assets
-1.553.043
-1.001.711
Net cash flow related to investing activities
-1.279.927
-1.062.763
+/- Cash flows from or to shareholders
-2.683.626
-1.928.905
+/- Other net cash flows from financing activities
-1.396.567
1.373.517
Net cash flow related to financing activities
-4.080.193
-555.388
Effect of exchange rate changes on cash and cash equivalents
-209.218
-384.634
Net increase/decrease in cash and cash equivalents
-5.427.695
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
18.596.027
24.023.722
Cash and balances at central banks, the Public treasury and postal cheque centre (assets and
liabilities)
4.1
22.235.375
21.190.824
Sight deposits (assets and liabilities) and loans/borrowings with credit institutions
-3.639.348
2.832.898
Net change in cash and cash equivalents
-5.427.695
5.005.947
SUMMARY OF ACCOUNTING POLICIES APPLIED BY THE GROUP
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.
Consolidation principles
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.
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 30 June 2025, no Group subsidiary was jointly controlled.
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.
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.
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.
Financial assets and liabilities
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.
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.
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.
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.
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.
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 30 June 2025, the Group does not hold any treasury shares.
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".
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).
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.
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.
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.
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.
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.
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.
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%
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
General & technical installations
20 20% 20 15%
recognised as a receivable.
The net income earned from the lease by the lessor is equal to the
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.
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.
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-
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
Does the customer have the right to obtain substantially all of the economic benefits from the use of the asset over the contract period? | ||
Yes | ||
Does the customer have the right to direct the use of the asset? | ||
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.
Lease period under IFRS 16 | ||||||
Lease period | Non-cancellable period | Optional renewable periods | Optional periods subsequent to termination dates | |||
of-use asset and the interest expense on the lease liability. This treatment, which is currently applied by lessees to financelease
Lessor reasonably certain to exercise the renewal option
Lessor reasonably certain of not exercising the renewal option
transactions, will subsequently be extended to operating leases.
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.
non-current assets held for sale and discontinued activities
An asset is classified as held for sale if its carrying amount is obtained through the asset's sale rather than through its continuous use in the business.
At 30 June 2025, the Group did not recognise any assets as held for sale or discontinued activities
Employee benefits Classification of employee benefits
Short-term benefits
Short-term benefits are due within twelve months of the close of the financial year in which employees provided the corresponding services. They are recognised as expenses in the year in which they are earned.
Defined-contribution post-employment benefits
The employer pays a fixed amount in respect of contributions into an external fund and has no other liability. Benefits received are determined on the basis of cumulative contributions paid plus any interest and are recognised as expenses in the year in which they are earned.
Defined-benefit post-employment benefits
Defined-benefit post-employment benefits are those other than defined-contribution schemes. The employer undertakes to pay a certain level of benefits to former employees, whatever the liability's cover. This liability is recognised as a provision.
The Group accounts for end-of-career bonuses as defined-benefit post-employment benefits: these are bonuses paid on retirement and depend on employees' length of service.
Long-term benefits
These are benefits which are not settled in full within twelve after the employee rendering the related service. Provisions are recognised if the benefit depends on employees' length of service.
The Group accounts for long-service awards as long-term benefits: these are payments made to employees when they reach 6 different thresholds of length of service ranging from 15 to 40 years.
Termination benefits
Termination benefits are made as a result of a Decision by the Group to terminate a contract of employment or a Decision by an employee to accept voluntary redundancy. The company may set aside provisions if it is clearly committed to terminating an employee's contract of employment.
Principles for calculating and accounting for defined-benefit post-employment benefits and other long-term benefits
Calculation method
The recommended method for calculating the liability under IAS 19 is the "projected unit credit" method. The calculation is made on an individual basis. The employer's liability is equal to the sum of individual liabilities.
Under this method, the actuarial value of future benefits is determined by calculating the amount of benefits due on retirement based on salary projections and length of service at the retirement date. It takes into consideration variables such as discount rates, the probability of the employee remaining in service up until retirement as well as the likelihood of mortality.
The liability is equal to the actuarial value of future benefits in respect of past service within the company prior to the calculation date. This liability is determined by applying to the actuarial value of future benefits the ratio of length of service at the calculation date to length of service at the retirement date.
The annual cost of the scheme, attributable to the cost of an additional year of service for each participant, is determined by the ratio of the actuarial value of future benefits to the anticipated length of service on retirement.
Accounting principles
A provision is recognised under liabilities on the balance sheet to cover for all obligations.
Actuarial gains or losses arise on differences related to changes in assumptions underlying calculations (early retirement, discount rates etc.) or between actuarial assumptions and what actually occurs (rate of return on pension fund assets etc.) constitute.
They are amortised through income over the average anticipated remaining service lives of employees using the corridor method.
The past service cost is spread over the remaining period for acquiring rights.
The annual expense recognised in the income statement under "Salaries and employee benefits" in respect of defined-benefit schemes comprises:
The rights vested by each employee during the period (the cost of service rendered) ;
The interest cost relating to the effect of discounting the obligation ;
The expected income from the pension fund's investments (gross rate of return);
The effect of any plan curtailments or settlements.
Share-based payments
The Group offers its employees the possibility of participating in share issues in the form of share purchase plans.
New shares are offered at a discount on the condition that they retain the shares for a specified period.
The expense related to share purchase plans is spread over the vesting period if the benefit is conditional upon the beneficiary's continued employment.
This expense, booked under "Salaries and employee benefits", with a corresponding adjustment to shareholders' equity, is calculated on the basis of the plan's total value, determined at the allotment date by the Board of Directors.
In the absence of any market for these instruments, financial valuation models are used that take into account performance-based criteria relating to the Bank's share price. The plan's total expense is determined by multiplying the unit value per option or bonus share awarded by the estimated number of options or bonus shares acquired at the end of the vesting period, taking into account the conditions regarding the beneficiary's continued employment.
Provisions recorded under liabilities
Provisions recorded under liabilities on the Group's balance sheet, other than those relating to financial instruments and employee benefits mainly relate to restructuring, litigation, fines, penalties and tax risks.
A provision is recognised when it is probable that an outflow of resources providing economic benefits will be required to settle an obligation arising from a past event and a reliable estimate can be made about the obligation's amount. The amount of such obligations is discounted in order to determine the amount of the provision if the impact of discounting is material.
A provision for risks and charges is a liability of uncertain timing or amount.
The accounting standard provides for three conditions when an entity must recognise a provision for risks and charges:
A present obligation towards a third party ;
An outflow of resources is probable in order to settle the obligation;
The amount can be estimated reliably.
Current and deferred taxes
The current income tax charge is calculated on the basis of the tax laws and tax rates in force in each country in which the Group has operations.
Deferred taxes are recognised when temporary differences arise between the carrying amount of an asset or liability in the balance sheet and its tax base.
A deferred tax liability is a tax which is payable at a future date. Deferred tax liabilities are recognised for all taxable temporary differences other than those arising on initial recognition of goodwill or on initial recognition of an asset or liability for a transaction which is not a business combination and which, at the time of the transaction, has not impact on profit either for accounting or tax purposes.
A deferred tax asset is a tax which is recoverable at a future date. Deferred tax assets are recognised for all deductible temporary differences and unused carry-forwards of tax losses only to the extent that it is probable that the entity in question will generate future taxable profits against which these temporary differences and tax losses can be offset.
The Group has opted to assess the probability of recovering deferred tax assets.
Deferred taxes assets are not recognised if the probability of recovery is uncertain. Probability of recovery is ascertained by the business projections of the companies concerned.
IFRIC 23 interpretation:
This interpretation is intended to clarify IAS 12 'Income taxes', which contains measures relating to recognition and measurement of current or deferred tax assets or liabilities.
This interpretation deals with income tax-related risks. The interpretation is to be applied to determine income tax-related items when there is uncertainty over income tax treatments by an entity under the applicable tax provisions. Tax risk naturally arises from uncertainty regarding a tax position adopted by the entity that might be questioned by the tax authority.
The interpretation provides a choice of two transition methods as follows:
Full retrospective approach, provided that the company is in possession of the necessary information without taking into account circumstances that have occurred over time; or
Modified retrospective approach, by recognising the cumulative impact under opening shareholders' equity for the financial period in which the interpretation is first applied, in which case, the comparative information for the financial period in which the interpretation is first applied is not restated.
The Group opted for the modified retrospective approach in respect of this interpretation by recognising the cumulative impact under opening shareholders' equity at 1 January 2019.
Cash flow statement
The cash and cash equivalents balance is composed of the net balance of cash accounts and accounts with central banks and the net balances of sight loans and deposits with credit institutions.
Changes in cash and cash equivalents related to operating activities reflect cash flows generated by the Group's operations, including cash flows related to investment property, held-to-maturity financial assets and negotiable debt instruments.
Changes in cash and cash equivalents related to investing activities reflect cash flows resulting from acquisitions and disposals of subsidiaries, associates or joint ventures included in the consolidated group, as well as acquisitions and disposals of property, plant and equipment excluding investment property and property held under operating leases.
Changes in cash and cash equivalents related to financing activities reflect the cash inflows and outflows resulting from transactions with shareholders, cash flows related to subordinated debt, bonds and debt securities (excluding negotiable debt instruments).
Use of estimates in the preparation of the financial statements
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.
NOTES TO THE INCOME STATEMENT FOR THE HALF YEAR ENDED 30 JUNE 2025
2.1. NET INTEREST INCOME
30/06/2025
30/06/2024
Income
Expense
Net
Income
Expense
Net
Customer transactions
6.699.142
1.887.495
4.811.647
6.502.009
1.739.203
4.762.806
Deposits, loans and borrowings
6.236.424
1.848.244
4.388.180
6.106.813
1.712.367
4.394.446
Repurchase agreements
39.251
-39.251
0
26.836
-26.836
Finance leases
462.718
462.718
395.196
0
395.196
Interbank transactions
859.423
1.151.882
-292.459
780.231
1.473.501
-693.270
Deposits, loans and borrowings
853.403
998.246
-144.843
773.856
1.047.907
-274.051
Repurchase agreements
6.020
153.636
-147.616
6.375
425.594
-419.219
Debt issued by the Group
504.910
-504.910
488.795
-488.795
Financial instruments at fair value through other comprehensive income
0
0
Debt instruments
2.946.545
2.946.545
2.843.745
2.843.745
TOTAL INTEREST INCOME/(EXPENSE)
10.505.110
3.544.287
6.960.823
10.125.985
3.701.499
6.424.486
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.
(In thousand MAD)
2.2. NET FEE INCOME
30/06/2025
30/06/2024
Income
Expense
Net
Income
Expense
Net
Net fees on transactions
1.792.913
138.125
1.654.788
1.758.642
116.845
1.641.797
With credit institutions
-
-
With customers
1.231.323
1.231.323
1.164.711
1.164.711
In securities
154.614
30.191
124.423
101.404
40.993
60.411
In foreign exchange
406.977
107.934
299.043
492.527
75.852
416.676
In financial futures and off balance sheet transac-
tions
-
-
Provision of banking and financial services
572.120
251.668
320.452
531.471
243.066
288.405
Net income from mutual fund management
-
-
Net income from means of payment
365.574
74.832
290.742
320.761
81.401
239.360
Insurance
-
-
Other
206.546
176.836
29.710
210.710
161.665
49.045
NET FEE INCOME
2.365.033
389.793
1.975.240
2.290.113
359.911
1.930.202
(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.
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.
30/06/2025 30/06/2024
Other assets
Portfolio
Trading assets
at fair value
through profit
Total
Trading portfolio
measured using
the fair value
Total
or loss
option
Fixed income and variable income
securities
937.805
108.838
1.046.643
536.453
69.416
605.869
Derivative instruments
-16.622
-16.622
10.221
10.221
Repurchase agreements
Loans
Borrowings
Revaluation of interest rate risk hedged
portfolios
Revaluation of foreign exchange positions
TOTAL
921.183
108.838
1.030.021
546.674
69.416
616.090
(In thousand MAD)
REMUNERATION FROM EQUITY INSTRUMENTS THROUGH OTHER COMPREHENSIVE INCOME (NON-RECYCLABLE)
30/06/2025 3
0/06/2024
Remuneration from equity instruments (dividends) through other comprehensive income (non-recyclable)
212.125
189.252
TOTAL
212.125
189.252
INCOME AND EXPENSES FROM OTHER ACTIVITIES
(In thousand MAD)
Income
30/06/2025
Expense
Net
Income
30/06/2024
Expense
Net
Net income from insurance activities
Net income from investment property
Net income from assets held under operating leases
157.283
72.019
85.264
148.353
62.449
85.904
Net income from real estate development activities
Other banking income and expenses
215.784
211.763
4.021
199.242
182.668
16.574
Other non-banking income from operations
105.796
24.589
81.207
339.218
30.120
309.098
TOTAL NET INCOME FROM OTHER ACTIVITIES
478.863
308.371
170.492
686.813
275.237
411.576
2.6. GENERAL OPERATING EXPENSES
(In thousand MAD)
30/06/2025
30/06/2024
Employee expenses
2.164.471
2.104.544
Taxes
160.503
154.530
External expenses
1.357.544
1.370.299
Other general operating expenses
94.652
85.586
Impairment and provisions for intangible assets and property, plant and equipment
520.624
459.987
General Operating Expenses
4.297.795
4.174.946
(In thousand MAD)
2.7. COST OF RISK
30/06/2025
30/06/2024
Net impairment
-1.503.795
-1.546.900
Bucket 1
-13.006
-225.178
Including loans and advances to credit and similar institutions
-7.326
-11.167
Including loans and advances to customers
1.601
67.425
Including off-balance sheet commitments
-53.128
-31.158
Including debt instruments
45.846
-250.278
Including debt instruments at fair value through other comprehensive income (recyclable)
Bucket 2
5.275
-310.543
Including loans and advances to credit and similar institutions
-
-
Including loans and advances to customers
5.275
-308.277
Including off-balance sheet commitments
-
-2.266
Including debt instruments
-
-
Including debt instruments at fair value through other comprehensive income (recyclable)
Bucket 3
-1.496.064
-1.011.179
Including loans and advances to credit and similar institutions
-1
-
Including loans and advances to customers
-1.416.864
-910.106
Including off-balance sheet commitments
-79.199
-101.073
Including debt instruments
-
-
Including debt instruments at fair value through other comprehensive income (recyclable)
Amounts recovered on loans and advances
106.309
97.434
Losses on irrecoverable loans and advances
-236.659
-182.039
Other
-8.343
-153.692
Cost of risk
-1.642.488
-1.785.197
2.8. NET GAINS AND LOSSES ON OTHER ASSETS
30/06/2025
30/06/2024
Property, plant and equipment and intangible assets used in business operations
Capital gains on disposal
Capital losses on disposal
Other
-3.025
-2.955
Net gains or losses on other assets
-3.025
-2.955
2.9. CORPORATE INCOME TAX
2.9.1. Current and deferred tax
30/06/2025
31/12/2024
Current tax
1.891.717
1.406.755
Deferred tax
2.623.746
2.610.179
Current and deferred tax assets
4.515.463
4.016.934
Current tax
2.421.029
2.036.293
Deferred tax
1.295.233
1.226.720
Current and deferred tax liabilities
3.716.262
3.263.013
2.9.2. Net corporate income tax expense
(In thousand MAD)
30/06/2025
30/06/2024
Current tax expense
-1.191.255
-1.084.958
Net deferred tax expense for the year
-57.101
119.418
Net corporate income tax expense
-1.248.356
-965.540
2.9.3. Effective tax rate
(In thousand MAD)
30/06/2025
30/06/2024
Pre-tax income
4.476.930
3.696.003
Corporate income tax expense
-1.248.356
-965.540
Average effective tax rate
27,9%
26,1%
(In thousand MAD)
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 : Banque de Développement du Mali, BANK OF AFRICA Europe, BANK OF AFRICA UK, BOA Group.
30/06/2025
ASSET
BANKING IN MANAGEMENT SPECIALISED OTHER INTERNATIONAL
MOROCCO INV AND T FINANCIAL OPERATIONS OPERATIONS TOTAL ESTMEN SERVICES
BANKING
Net interest income
3.280.330
30.265
375.797
12.682
3.261.748
6 960 822
Fee income
741.399
134.694
16.694
473
1.081.980
1 975 240
Net banking income
4.881.219
291.636
400.382
101.854
4.673.611
10 348 702
General operating expenses and impairment
-1.815.309
-187.933
-136.621
-96.906
-2.061.026
(4 297 795)
Gross operating income
3.065.909
103.703
263.761
4.948
2.612.585
6 050 907
Corporate income tax
-725.875
-48.101
-111.729
3.582
-366.234
(1 248 356)
Net income attributable to shareholders of 1.077.706
89.592
74.095
-16.732
1.026.573
2 251 235
(In thousand MAD)
30/06/2024
ASSET
BANKING IN MANAGEMENT SPECIALISED OTHER INTERNATIONAL
MOROCCO INV AND T FINANCIAL OPERATIONS OPERATIONS TOTAL ESTMEN SERVICES
BANKING
Net interest income
2.761.416
62.840
321.162
6.021
3.273.047
6 424 486
Fee income
684.581
79.861
18.275
342
1.147.143
1 930 202
Net banking income
4.195.306
228.804
346.257
95.528
4.705.711
9 571 606
General operating expenses and impairment
-1.684.973
-176.990
-136.625
-65.720
-2.110.638
(4 174 947)
Gross operating income
2.510.333
51.814
209.632
29.808
2.595.072
5 396 659
Corporate income tax
-516.516
-31.779
-76.591
-2.468
-338.186
( 965 540)
Net income attributable to shareholders of
the parent company
902.574
57.244
58.424
886
923.254
1 942 381
INCOME BY BUSINESS SEGMENT
the parent company
(In thousand MAD)
30/06/2025
ASSET
BANKING IN MANAGEMENT SPECIALISED OTHER INTERNATIONAL
MOROCCO INV AND T FINANCIAL OPERATIONS OPERATIONS TOTAL ESTMEN SERVICES
BANKING
TOTAL ASSETS 272.810.618
1.580.746
17.364.942
2.035.215
130 206 153
423 997 674
ASSETS
Financial assets at fair value through other 5 079 488
19 105
33 215
5 305
2 406 515
7 543 628
Loans and advances to customers at 145 521 825
0
16 294 794
1 346 840
55 812 642
218 976 101
Financial assets at fair value through profit 63 197 219
170 554
861
0
2 443 702
65 812 336
Securities at amortised cost 10 877 103
0
0
0
35 210 226
46 087 329
LIABILITIES
Amounts due to customers 167 908 416
0
560 525
488 227
92 908 938
261 866 106
Shareholder's Equity 22 503 195
623 351
1 639 036
( 123 996)
13 299 961
37 941 547
(In thousand MAD)
31/12/2024
ASSET
BANKING IN MANAGEMENT SPECIALISED OTHER INTERNATIONAL
MOROCCO INV AND T FINANCIAL OPERATIONS OPERATIONS TOTAL ESTMEN SERVICES
BANKING
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 5 276 652
17 481
33 215
5 305
2 331 300
7 663 954
Loans and advances to customers at 149 941 437
0
16 160 793
794 100
58 720 713
225 617 042
Financial assets at fair value through profit 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)
ASSETS AND LIABILITIES BY BUSINESS SEGMENT
comprehensive income amortised cost
or loss
comprehensive income amortised cost
or loss
NOTES TO THE BALANCE SHEET FOR THE HALF YEAR ENDED 30 JUNE 2025
CASH AND BALANCES AT CENTRAL BANKS, THE PUBLIC TREASURY AND POSTAL CHEQUE CENTRE
30/06/2025
31/12/2024
CASH AND BALANCES
5.067.979
6.705.309
CENTRAL BANKS
17.138.327
14.460.341
PUBLIC TREASURY
24.300
20.451
POSTAL CHEQUE CENTRE
4.768
4.724
CENTRAL BANKS, PUBLIC TREASURY, POSTAL CHEQUE CENTRE
17.167.395
14.485.515
Cash and balances at central banks, the Public treasury and postal cheque centre
22.235.375
21.190.824
(In thousand MAD)
FINANCIAL ASSETS AND LIABILITIES AT FAIR VALUE THROUGH PROFIT OR LOSS
30/06/2025
31/12/2024
Financial
Other assets/
Financial
Other assets/
assets/lia-
liabilities at
assets/lia-
liabilities at
bilities held
fair value
Total
bilities held
fair value
Total
for trading
through prof-
for trading
through prof-
purposes
it or loss
purposes
it or loss
Negotiable debt securities
49.120.566
-
49.120.566
45.397.648
- 45.397.648
Treasury bills and other marketable assets mobilised with
central banks
47.896.052
47.896.052
43.775.465
43.775.465
Other negotiable debt securities
1.224.514
1.224.514
1.622.183
1.622.183
Bonds
4.535.958
-
4.535.958
4.525.389
-
4.525.389
Government bonds
2.133.794
2.133.794
2.195.938
2.195.938
Other bonds
2.402.165
2.402.165
2.329.451
2.329.451
Equities and other variable income securities
9.570.020
2.584.962
12.154.982
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
831
0
831
8.814
0
8.814
Currency derivative instruments
831
831
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 63.227.375
2.584.962
65.812.337
58.960.670
1.720.743
60.681.413
Of which securities on loan
Excluding equities and other variable income securities
FINANCIAL ASSETS AT FAIR VALUE THROUGH PROFIT OR LOSS
PROFIT OR LOSS
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
FINANCIAL ASSETS AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
30/06/2025 | 31/12/2024 | |||||
Balance sheet value | Unrealised gains | Unrealised losses | Balance sheet value | Unrealised gains | Unrealised losses | |
Debt instruments at fair value through other comprehensive income 781.932 | 9.723 | -9.020 | 713.984 | 5.187 | -29.572 |
Equity instruments at fair value through other comprehensive income 6.761.695 | 1.886.777 | -487.286 | 6.949.970 | 1.950.228 | -486.921 |
(recyclable) (non-recyclable)
(In thousand MAD)
4.4. SECURITIES AT AMORTISED COST | ||
30/06/2025 | 31/12/2024 | |
Treasury bills and other marketable assets mobilised with central banks | 15.014.500 | 15.777.666 |
Treasury bills and other marketable assets mobilised with central banks | 14.581.186 | 15.296.531 |
Other negotiable debt securities | 433.314 | 481.135 |
Bonds | 32.401.358 | 30.497.570 |
Government bonds | 29.059.434 | 26.833.277 |
Other bonds | 3.341.925 | 3.664.293 |
Impairment | -1.328.530 | -1.345.504 |
TOTAL DEBT INSTRUMENTS AT AMORTISED COST | 46.087.328 | 44.929.732 |
4.5. INTERBANK TRANSACTIONS, AMOUNTS DUE TO AND FROM CREDIT INSTITUTIONS | (In thousand MAD) | |
LOANS AND ADVANCES TO CREDIT INSTITUTIONS AT AMORTISED COST | ||
30/06/2025 | 31/12/2024 | |
Sight deposits | 10.889.350 | 12.226.612 |
Loans | 21.091.055 | 22.872.072 |
Of which overnight loans | 759.561 | 946.201 |
Repurchase agreements | 895.584 | 141.102 |
TOTAL LOANS AND ADVANCES TO CREDIT INSTITUTIONS BEFORE IMPAIRMENT | 32.875.989 | 35.239.785 |
Impairment of loans and advances to credit institutions | -86.204 | -88.126 |
TOTAL LOANS AND ADVANCES TO CREDIT INSTITUTIONS NET OF IMPAIRMENT | 32.789.784 | 35.151.660 |
(In thousand MAD) | ||
AMOUNTS DUE TO CREDIT INSTITUTIONS | ||
30/06/2025 | 31/12/2024 | |
Sight deposits | 8.151.851 | 8.884.278 |
Borrowings | 24.259.410 | 26.020.004 |
Of which overnight loans | 1.362.837 | 879.183 |
Repurchase agreements | 41.915.658 | 45.343.026 |
TOTAL | 74.326.919 | 80.247.308 |
(In thousand MAD) | ||
4.6. AMOUNTS DUE TO AND FROM CUSTOMERS
30/06/2025 31/12/2024
LOANS AND ADVANCES TO CUSTOMERS AT AMORTISED COST
Overdrawn accounts 23.908.591 22.012.931
Customer loans 187.753.511 186.197.367
Repurchase agreements 11.397.179 20.412.511
TOTAL LOANS AND ADVANCES TO CUSTOMERS BEFORE IMPAIRMENT 240.204.284 245.569.493
Finance leases 17.145.003 16.946.683
TOTAL LOANS AND ADVANCES TO CUSTOMERS NET OF IMPAIRMENT 218.976.101 225.617.042
Impairment of loans and advances to customers -21.228.183 -19.952.451
30/06/2025 31/12/2024
BREAKDOWN OF LOANS AND ADVANCES TO CUSTOMERS BY
(In thousand MAD)
Banking in Morocco 145.521.825 149.941.437
Specialised Financial Services 16.294.794 16.160.793
International Operations 55.812.642 58.720.713
Asset Management 0 0
Total - principal 218.976.101 225.617.042
Other Operations 1.346.840 794.100
Balance sheet value 218.976.101 225.617.042
Accrued interest
30/06/2025 31/12/2024
BREAKDOWN OF LOANS AND ADVANCES TO CUSTOMERS BY GEOGRAPHICAL REGION
(In thousand MAD)
Morocco 163.163.459 166.896.329
Africa 54.139.123 57.047.881
Total - principal 218.976.101 225.617.042
Europe 1.673.519 1.672.832
Balance sheet value 218.976.101 225.617.042
Accrued interest
BREAKDOWN OF LOANS AND ADVANCES AND IMPAIRMENT BY BUCKET
(In thousand MAD)
30/06/2025 | ||||||||
Receivables and commitments | Depreciation | |||||||
BUCKET 1 | BUCKET 2 | BUCKET 3 | TOTAL | BUCKET 1 | BUCKET 2 | BUCKET 3 | TOTAL | |
Financial assets at fair value through 673.623 | 126.100 | - | 799.723 | 155 | 17.635 | - | 17.790 |
Debt instruments at fair value through other comprehensive income 673.623 (recyclable) | 126.100 | 799.723 | 155 | 17.635 | 17.790 | ||
Financial assets at amortised cost 282.555.859 | 13.868.114 | 24.072.157 | 320.496.130 | 2.969.221 | 2.896.376 | 16.777.320 | 22.642.917 |
Loans and advances to credit 32.862.913 | - | 13.076 | 32.875.989 | 70.382 | 15.822 | 86.204 | |
Loans and advances to customers 202.277.088 | 13.868.114 | 24.059.081 | 240.204.283 | 1.570.309 | 2.896.376 | 16.761.498 | 21.228.183 |
Debt securities 47.415.858 | 47.415.858 | 1.328.530 | 1.328.530 | ||||
Total assets 283.229.482 | 13.994.214 | 24.072.157 | 321.295.853 | 2.969.376 | 2.914.011 | 16.777.320 | 22.660.707 |
Total off-balance sheet 59.675.379 | 245.175 | 393.588 | 60.314.142 | 280.894 | 2.573 | 377.812 | 661.279 |
other comprehensive income
institutions
31/12/2024 | ||||||||
Receivables and commitments | Depreciation | |||||||
BUCKET 1 | BUCKET 2 | BUCKET 3 | TOTAL | BUCKET 1 | BUCKET 2 | BUCKET 3 | TOTAL | |
Financial assets at fair value through 643.398 | 94.806 | - | 738.204 | 267 | 23.953 | - | 24.220 |
Debt instruments at fair value through other comprehensive income 643.398 (recyclable) | 94.806 | 738.204 | 267 | 23.953 | 24.220 | ||
Financial assets at amortised cost 288.248.291 | 16.204.335 | 22.631.889 | 327.084.515 | 2.973.261 | 2.901.641 | 15.511.179 | 21.386.081 |
Loans and advances to credit 35.202.968 | - | 36.817 | 35.239.785 | 55.855 | - | 32.271 | 88.126 |
Loans and advances to customers 206.770.087 | 16.204.335 | 22.595.072 | 245.569.494 | 1.571.902 | 2.901.641 | 15.478.908 | 19.952.451 |
Debt securities 46.275.236 | 46.275.236 | 1.345.504 | 1.345.504 | ||||
Total assets 288.891.689 | 16.299.141 | 22.631.889 | 327.822.719 | 2.973.528 | 2.925.594 | 15.511.179 | 21.410.301 |
Total off-balance sheet 56.387.940 | 272.423 | 379.118 | 57.039.480 | 238.666 | 2.573 | 284.484 | 525.722 |
other comprehensive income
institutions
AMOUNTS DUE TO CUSTOMERS | ||
30/06/2025 | 31/12/2024 | |
Accounts in credit | 172.452.055 | 165.819.447 |
Fixed term accounts | 28.930.578 | 30.266.349 |
Savings accounts | 47.509.667 | 47.102.989 |
Certificates of deposit | 3.022.704 | 3.297.279 |
Repurchase agreements | 389.444 | 1.183.108 |
Other accounts in credit | 9.561.658 | 9.958.551 |
TOTAL LOANS AND RECEIVABLES DUE TO CUSTOMERS | 261.866.106 | 257.627.724 |
BREAKDOWN OF AMOUNTS DUE TO CUSTOMERS BY BUSINESS SEGMENT | (In thousand MAD) | |
30/06/2025 | 31/12/2024 | |
Banking in Morocco | 167.908.416 | 162.928.923 |
Specialised Financial Services | 560.525 | 521.881 |
International Operations | 92.908.938 | 93.887.516 |
Asset Management | 0 | 0 |
Other Operations | 488.227 | 289.404 |
Total - principal | 261.866.106 | 257.627.724 |
Accrued interest | ||
Balance sheet value | 261.866.106 | 257.627.724 |
BREAKDOWN OF AMOUNTS DUE TO CUSTOMERS BY GEOGRAPHICAL REGION | (In thousand MAD) | |
30/06/2025 | 31/12/2024 | |
Morocco | 168.957.168 | 163.740.208 |
Africa | 92.304.653 | 92.779.245 |
Europe | 604.285 | 1.108.271 |
Total - principal | 261.866.106 | 257.627.724 |
Accrued interest | ||
Balance sheet value | 261.866.106 | 257.627.724 |
(In thousand MAD) | ||