Attijariwafa bank: Always Buying, BKGR Raises Its Price Target to 900 DH

In the first half of 2025, Attijariwafa bank's credit volume increased by 0.9% to 417.4 billion DH, reflecting a 5% year-on-year growth. BKGR anticipates an acceleration in the 2025-2026 period, projecting an 8% increase in 2025 and 7% in 2026, driven by major projects related to the co-hosting of the 2030 World Cup and investments in sub-Saharan Africa. On the deposits side, growth reached 1.3%, totaling 486.8 billion DH in H1 2025, which is an 8% increase compared to the previous year. Forecasts indicate a 9% growth in 2025 and 8% in 2026, confirming the group's position as the leading savings collector in the country. The net banking income (NBI) stood at 17.7 billion DH in H1 2025, up by 4%, attributed to an increase in the interest margin (5%) and commission margin (6.5%). For the entire fiscal year, BKGR expects an NBI of 36.4 billion DH, representing a 5.4% increase, which is projected to rise to 38.1 billion DH in 2026. Cost management remains a strong point, with general expenses rising by 3.5% in the first half, improving the operating ratio to 35.3%. By 2026, this ratio is expected to remain around 36%, a competitive level. The cost of risk decreased by 36.8% to 1.39 billion DH in H1 2025, bringing the rate down to 0.78% for 2025 and an expected 0.75% in 2026. This improvement positively impacted the group's net profit (RNPG), which rose by 19.8% to 5.9 billion DH in the first half. BKGR anticipates an RNPG of 10.8 billion DH in 2025, a 13.3% increase, followed by 11.4 billion DH in 2026, a 6.1% rise. In the stock market, Attijariwafa bank's shares gained 45.7% year-on-year by early September, outperforming the MASI Banks index (31.5%) and the overall MASI index (45.1%). BKGR believes this momentum will continue due to improved results and the bank's strong profile. In terms of valuation, the price-to-earnings (P/E) ratio is expected to be 15.4x in 2025 and 14.5x in 2026, below the market average. The dividend yield (D/Y) is projected to be 3% in 2025 and 3.1% in 2026, with a net dividend per share of 23 DH in 2025 and 24 DH in 2026. Looking ahead, BKGR emphasizes that the bank is well-positioned to benefit from the investment cycle initiated in Morocco ahead of the 2030 World Cup and to strengthen its international operations, despite a more fragile environment in Egypt and Tunisia. The report also highlights the group's financial solidity, with consolidated equity increasing by 12% to 74.8 billion DH and solvency ratios exceeding regulatory requirements.