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Morocco’s listed banks have entered a virtuous cycle, recording 91.6 billion dirhams in net banking income for 2024, up 12.8 percent year-on-year, significantly exceeding five-year averages and signaling robust sector recovery.
Attijari Global Research’s latest report reveals comprehensive performance improvements across all revenue streams. Interest margins grew 6.3 percent driven by credit volume recovery, particularly equipment loans. Commission margins increased 5.6 percent, supported by digital services expansion and specialized subsidiaries. Market activities surged 48.3 percent, benefiting from favorable interest rate environments.
Listed banks achieved net profits of 19.3 billion dirhams, advancing 27 percent with average return on equity reaching 12.7 percent—the highest level in a decade. Individual performances varied, with Attijariwafa Bank posting 15.8 percent ROE, while CFG Bank achieved 15.1 percent despite its smaller size.
Operational efficiency gains complement revenue growth. The sector’s cost-to-income ratio dropped to 42.8 percent in 2024, the lowest in over ten years, reflecting successful digital transformation and network optimization efforts. AGR projects average annual profit growth of 11.6 percent through 2027, potentially reaching 47.7 billion dirhams.
Credit dynamics support this trajectory, with loans expanding 4.4 percent by May 2025. Equipment loans surged 19.5 percent to 253.6 billion dirhams, hitting historical highs amid Morocco’s investment super-cycle. Customer deposits grew 9.6 percent in 2024—the strongest growth since 2009—reaching 1,279 billion dirhams.
Despite solid fundamentals, bank valuations remain attractive with price-to-earnings ratios at 9.9x for 2024, below the 13.0x historical average, suggesting 18 percent upside potential according to AGR’s 379 billion dirham target capitalization.
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