Morocco Banks Profits Surge 22% - Lending Accelerates 2025

Morocco’s banking sector continues to gain momentum. At the end of December 2025, the consolidated net result of credit institutions reached 19.2 billion dirhams, up 22.2% compared to the previous year.

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This profit increase is notably explained by the improvement in net banking income, which corresponds to revenues from banks’ main activities, but also by the reduction in risk costs. Institutions thus had to allocate less money to cover potential repayment defaults.

According to the statement issued following the 23rd meeting of the Systemic Risk Coordination and Surveillance Committee, Moroccan banks are consolidating their performance for the third consecutive year.

This improvement comes in a context of renewed financing. Credit extended to the non-financial sector increased by 6.5% in 2025, supported by the dynamism of non-agricultural activities and the easing of Bank Al-Maghrib’s monetary policy.

Non-performing loans remain significant, however. They represent 8.3% of total credit, compared to 8.4% a year earlier. Provisions made by banks cover nearly 68% of them.

The financial strength of the sector continues to strengthen in parallel. The banks’ overall solvency ratio now reaches 16.1%, while the Tier 1 capital ratio stands at 13.5%. These levels remain well above the regulatory requirements imposed on institutions.

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Stress tests conducted by authorities also confirm that Morocco’s major banks would be capable of absorbing significant macroeconomic shocks. Their short-term liquidity level also remains above the regulatory minimum.