BCP: Profits Surge by 12.8% in the First Half of 2025

In a favorable national environment, the Moroccan economy continued its strong performance during the first half of 2025. This growth was supported by a rebound in agricultural value added as well as growth in non-agricultural value added. However, international economic conditions remain affected by trade and geopolitical tensions. In this context, the Central Popular Bank Group, committed to its values of performance and customer proximity, continued to support and guide its local and international clients across all its operational countries. By the end of the first half of 2025, the Group's consolidated resources had increased by 5.5% compared to the same period in 2024, reaching 393.9 billion Dirhams. Meanwhile, gross customer loans strengthened by 2.3% compared to the end of June 2024, totaling 319.2 billion Dirhams. Additionally, the consolidated Net Banking Income rose by 8.4%, reaching 13.9 billion Dirhams. This growth was driven by a 3.7% increase in Core Banking Business (Interest Margin + Commission Margin) to 9.5 billion Dirhams, alongside a positive performance in market activities, which improved by 20.2% to 3.9 billion Dirhams. The Group's operating expenses showed a slight increase of 1.8% by the end of June 2025, stabilizing at 5.7 billion Dirhams. Consequently, the operating ratio improved to 40.7%, reflecting a 2.7-point enhancement year-on-year. As a result of these achievements, the Group reported a consolidated net profit increase of 16.8% to 3.5 billion Dirhams. The Group's net profit also improved by 12.8% to 2.9 billion Dirhams, marking a semester of performance aligned with the Group's objectives. Following the Group's trend, deposit collection activity at the Bank in Morocco showed a year-on-year increase of 5.9%, reaching 315.8 billion Dirhams by the end of June 2025. This growth was driven by the strong development of resident individual resources and deposits from Moroccans abroad. The bank continues to optimize its resource structure, with the share of non-interest-bearing deposits reaching 78.4% by the end of June 2025, compared to 76.8% a year earlier. On the other hand, loans increased by 1.3%, influenced by improved equipment loans combined with a decline in cash loans, amid falling international commodity prices. The Net Banking Income of the Bank in Morocco recorded an 18% increase by the end of June 2025, supported by a 4% rise in the interest margin and a 34% improvement in market activity results, linked to the appreciation of the trading securities portfolio. Reflecting the BCP Group's diversification policy, over 47% of the consolidated Net Banking Income by the end of June 2025 was generated by its subsidiaries in Morocco and internationally. The international bank subsidiaries contributed 22.1% to the Group's overall Net Banking Income, in a context marked by rising financing costs. The contribution from business subsidiaries in Morocco was 25.2%, reflecting an 11.7% improvement in the aggregated Net Banking Income of these subsidiaries compared to the end of June 2024. This improvement is primarily linked to the strong dynamics of specialized financing companies' intermediation activities and the development of investment banking subsidiary activities. In the first half of 2025, the cost of risk showed a slight decrease of 0.2% to 2.7 billion Dirhams, reflecting the Group's sustained recovery efforts while maintaining its proactive provisioning policy. Furthermore, the Group maintains a solid financial base, illustrated by the specific support fund for the cooperative model of the BCP Group, which appreciated by 7.2% year-on-year to 4.2 billion Dirhams. Additionally, the General Risk Provision (GRP) stands at 7.1 billion Dirhams, reinforcing the bank's financial solidity.