Moroccan Banks See 25% Boost from International Subsidiaries Amid Domestic Slowdown

This contribution from the international subsidiaries of the three major Moroccan banks (Attjirawafa bank, Banque Centrale Populaire and Bank of Africa) reached 25% of the total volume of activity in the sector, according to the latest annual report on financial stability, published by Bank Al-Maghrib. In other words, a quarter of the revenues of the Moroccan banking sector come from activities outside Morocco.

The note points out that in terms of profits, the contribution of these subsidiaries to the RNPG of the three banking groups has increased from 29% at the end of 2019 to 42% at the end of 2020, to the detriment of that of Morocco, which has fallen from 71% to 58% at the end of 2020.

The Net Banking Income (NBI, equivalent to turnover in the banking sector) generated by the subsidiaries increased by 8% to reach an amount of 20.3 billion dirhams. This represents 36% of the consolidated NBI of the three banking groups.

In total, Moroccan banking groups have 51 subsidiaries and 22 branches present in 35 countries, including 27 in Africa, 7 in Europe and one in Asia.