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The Moroccan Economy in Brief: Tuesday, August 2, 2022

Bancassurance generates 16 billion dirhams in Morocco in 2021:

The bancassurance activity recorded growth of 16.5% in 2021 with a premium volume of 16 billion dirhams (MMDH), indicates the Insurance and Social Welfare Supervisory Authority (ACAPS). "After an exceptional year marked by a slowdown in bancassurance activity, the year 2021 is on the rise again with a growth rate of 16.5%", notes the Authority in a document on the activity of the bancassurance in 2021. Thus, the volume of insurance premiums drained by the banking network, finance companies and micro-credit associations amounted to 16 billion dirhams, against 13.7 billion in 2020, specifies ACAPS . Life and capitalization insurance continue to dominate this activity with production of 15.3 billion dirhams, representing 95.3% of bank insurance inflows.

Banque Populaire: 1.8 billion dirhams in the 1st half of 2022:

Banque Centrale Populaire (BCP) net income Group share stood at 1.8 billion dirhams (MMDH) in the first half of 2022, up 16.6% from the same period a year earlier. Consolidated net income continued to recover, rising from 18.6% to almost 2.4 MMDH, BCP said in a statement, noting that despite the economic slowdown, the cost of consolidated risk has eased from nearly 18% to 1.8 MMDH. In terms of consolidated net banking income (NBI), it appreciated by 3% to almost 10.5 MMDH, mainly benefiting from developments in the interest margin and the margin on commissions, which strengthened by 5.9% and 6.7% respectively.

The “Forsa” program starts funding its first projects:

The “Forsa” entrepreneurship support programme has started financing its first projects, following meetings of funding committees held in several regions, said the Ministry of Tourism, Crafts and the Social and Solidarity Economy on Monday. “For several weeks now, the program has been speeding up its selection and support phases, which allowed the first funding commissions to be held as announced at the end of July,” the ministry said in a statement.

Crédit du Maroc significantly improved its profit capacity at the end of June:

Good growth for Crédit du Maroc (CDM) in the first half of 2022. The banking group earned consolidated net banking income (NBI) of 1.285 billion dirhams , an increase by 6.5% year-on-year. The net interest margin appreciated by 4.1% to 990.7 million dirhams and the net commission margin by 2.7% to 213.6 million dirhams. Net income Group share (RNPG) jumped 16.9% to 325 million dirhams. A performance that benefits from a good commercial dynamic and a favorable evolution of the cost of risk. The latter has signed a clear fall of 84.2% to reach 10 million dirhams. 'This change is explained by a controlled and anticipated loss, coupled with the statistical update of the calculation parameters generating a favourable impact on the cost of risk,' explains CDM in its financial communication.

Increasing Household Debt (BAM):

Overall household debt continues to soar. In 2021, its outstanding amount reached 386 billion dirhams, of which 13.3 billion comes from crowdfunding. Household debt increased by 4.8% year-on-year, bringing it closer to its average level of growth of 4.9% observed over the period 2013-2019. Composed of 65% of home loans and 35% of consumer loans granted by banks and finance companies, total household debt continues to represent more than a third of the loans portfolio of these institutions, indicates Bank Al-Maghrib (BAM) in its 2021 Financial Stability Report.