Moroccan Banks See 76% Profit Surge in 2021, Defying Global Trends
At the end of 2021, Moroccan banks continued their solid growth, despite the unfavorable international environment. They recorded a 76.4% increase in profits for this year, after a contraction observed in 2020, according to the Coordination and Monitoring Committee of Systemic Risks (CCSRS).
It thus appears that the Moroccan banking sector remains strong and resilient in terms of profitability, but also liquidity and solvency. The short-term liquidity ratio stands at comfortable levels, the experts said.
"In terms of capitalization, the solvency and Tier 1 capital ratios stood at 15.8% and 12% on a solo basis at the end of 2021, for regulatory minimums of 12% and 9%. On a consolidated basis, these ratios stood at 13.9% and 11.2% respectively. The solvency macro stress test exercise carried out by Bank Al-Maghrib in June 2022 shows the resilience of the banking sector to scenarios simulating the deterioration of macroeconomic conditions," says a statement from the body.
The same source points out that despite a difficult environment, bank credit to the non-financial sector also followed the same trend at the beginning of the 2022 financial year. At the end of April, the default rate stabilized at 11.2% for loans to non-financial companies and 9.8% for loans to households.
As a result, the non-performing loan rate of the banking sector is 8.7%, and the coverage rate of these loans by provisions has remained around 68%, the CCSRS specifies.
