Annual results: Bank of Africa improves its profits

The banking group will achieve a good harvest in 2023. It will record a profit of around 2.7 billion dirhams, an increase of 16% compared to 2022. GDP also increased by 9%, to 16.9 billion dirhams.

The year 2023 has been good for the Bank Of Africa group, to say the least. The bank shows remarkable growth in its key financial aggregates. Starting with the core business, net banking income (NBI), which increased by 9% to 16.9 billion dirhams. According to the bank’s announcement, it benefits from the growth of Core Business (+14% for the margin on commissions and +4% for the interest margin) and the recovery of market activities in Morocco.

It must be recognized that BOA’s activity has increased with an increase in the provision of credits to consolidated customers – with the exception of resale. They amounted to 201.5 billion dirhams, an increase of 3%. Consolidated deposits – excluding repos – decreased by 1.8% to MAD 237 billion, “due to a controlled development of term deposits in Morocco and an unfavorable exchange rate effect in sub-Saharan Africa”.

On the operational side, we should note the significant improvement in the consolidated operating coefficient to 50.6% in 2023, driven by “a sustained increase in group costs of +4%”. Gross operating income in turn rose by 14% to 8.4 billion dirhams.

Ultimately, the group’s net profit (RNPG) in 2023 amounted to 2.7 billion dirhams, an increase of 16% compared to 2022. Revised for the earthquake-related donation, profits recorded an increase of 22% to 2.8 billion dirham. These were largely driven by activities in Africa which contributed significantly to the group’s profits in 2023, with a share of 56%, compared to 42% for the activities in Morocco.

Under these circumstances, the bank would have to pay a dividend of Dh4 per share. The group’s share of equity amounted to 26.8 billion dirhams, an increase of 6%. In addition, BOA must implement a capital increase by incorporation of reserves giving rise to the granting of free shares, for a maximum amount of MDH 632.

Sami Nemli / ECO inspirations