CFG Bank: Profits Up 66% in the First Half of 2025

As of June 30, 2025, CFG Bank's loan portfolio reached 17.2 billion dirhams, marking a 21% increase over the past year. This growth was primarily driven by the corporate segment, resulting in a net production of nearly 3 billion dirhams. Customer deposits grew by 27% year-on-year, totaling 18.9 billion dirhams by the end of June 2025. This included a net collection of 4 billion dirhams. Notably, non-interest-bearing deposits surged by nearly 40%, maintaining a share of almost 50% of total deposits, despite the strong growth in loans. Consolidated net banking income (NBI) stood at 600 million dirhams, up 41% from 424 million dirhams in the same period in 2024. The recurring NBI, which includes interest margin and fees, reached 467 million dirhams, reflecting a 29% increase. The interest margin was 244 million dirhams, up 34%, largely due to the rise in loan volumes. Fees amounted to 222 million dirhams, a 23% increase, encompassing both banking commissions and asset management fees. Less predictable NBI, derived from stock market intermediation, bond trading, and corporate finance, reached 133 million dirhams, a significant 115% increase, benefiting from favorable equity and bond markets in the first half of 2025. The gross operating profit (GOP) rose at a faster pace than NBI, increasing by 88% to 301 million dirhams, driven by effective cost management, which saw expenses rise by only 13% while NBI grew by 41%. Profit Before Tax (PBT) reached 268 million dirhams in June 2025, compared to 138 million dirhams in June 2024, representing a 95% increase. The PBT accounted for a risk cost of 23 million dirhams, or 0.29% of the loan portfolio. The bank's risk cost remains moderate due to its specific positioning and strong collateral coverage for loans. The group's net profit attributable to shareholders (NPAT) was 181 million dirhams as of June 30, 2025, a 66% increase compared to the same date in 2024. The growth in NPAT was lower than that of PBT due to the impact of corporate tax following the exhaustion of carryforward losses. The effective corporate tax rate was 30% in the first half of 2025, up from 15% in the same period in 2024. For 2025, CFG Bank has revised its guidance upwards, now projecting a GOP growth of over 40%, PBT growth of over 45%, and NPAT growth of over 25%. It is important to note that in 2025, CFG Bank will fully utilize its carryforward losses and will begin to incur corporate tax, resulting in NPAT growth being lower than PBT growth.