CFG Bank Raises Annual Growth Forecast Following Strong First Half Performance

The first half of 2025 has shown excellent performance for CFG Bank, with stronger-than-expected growth across various financial indicators over the past 12 months. This includes notable increases in credit production and deposit collection. The investment banking sector also experienced double-digit growth, driven by strong capital markets performance in equities and bonds. As of June 30, 2025, the total credit portfolio reached 17.2 billion MAD, reflecting a 21% year-on-year growth, with net production nearing 3 billion MAD, primarily from the "Corporate" segment. Meanwhile, customer deposits grew by 27% over the same period, resulting in a net collection of 4 billion MAD, bringing the total to 18.9 billion MAD by the end of June 2025. Non-interest-bearing deposits surged nearly 40% year-on-year, maintaining nearly 50% of total deposits despite the rapid growth in credit. Consolidated net banking income (NBI) stood at 600 million MAD as of June 30, 2025, up from 424 million MAD during the same period in 2024, marking a 41% increase. The recurring NBI, which includes interest margin and commissions, reached 467 million MAD, a 29% rise. The interest margin was 245 million MAD (+34%), primarily driven by increased volumes, while commissions totaled 222 million MAD (+23%), encompassing both banking commissions and asset management fees. The less predictable NBI, derived from stock market intermediation, bond trading, and corporate finance, amounted to 133 million MAD (+115%), benefiting from favorable equity and bond markets in the first half of 2025. The consolidated operating profit (RBE) grew at a faster pace than NBI, increasing by 88% due to effective cost management, which saw a 13% rise, while NBI grew by 41%. CFG Bank has revised its 2025 annual guidance upward, now projecting RBE growth of over 40%, RAI growth exceeding 45%, and net profit attributable to shareholders (RNPG) growth above 25%. It is important to note that in 2025, CFG Bank will fully utilize its carryforward losses and begin to incur corporate tax. Consequently, the growth of RNPG will be less than that of RAI. Additionally, in May 2025, CFG Bank held its first "Capital Markets Day," where management shared the bank's business model with analysts and outlined medium-term growth prospects, aiming to double its size by 2028/2029 without additional equity, targeting an NBI of around 2 billion MAD, an RNPG of approximately 500 million MAD, and a return on equity (ROE) exceeding 16%. Furthermore, in June 2025, CFG Bank successfully completed a bond issuance of 500 million MAD to support the rapid growth of its credit and deposit portfolios.