The Crédit du Maroc Group (CDM) announced that its net income share (RNPG) stood at the end of September, at MAD 104.1 million (MDH), down 76.1% compared to the same period from 2019.
In a press release published on Monday, the group explains this decrease by the increase in the provisioning of credit risks from the second quarter of 2020 and the exceptional contribution to the Covid-19 solidarity fund.
Regarding CDM’s consolidated net banking income (NBI), it amounted to more than 1.77 billion dirhams (billion dirhams) at the end of September 2020, a limited decline of 0.6% compared to the previous year .
The decline in NBI was contained thanks to the good performance of the net interest margin, which rose by 1.7% to MAD 1.4 billion, benefiting from the continued optimization of the cost of resources.
The margin on commissions fell by 7.8% to MAD 292.5 billion, in connection with the decrease in activity linked to the health crisis and the slowdown in the activity of specialized businesses, adds the bank. The market result fell by 2.3% to 157.1 million dirhams, despite the development of foreign exchange activities, notes CDM.
The Group’s subsidiaries, he adds, posted an overall NBI of MAD 138.3 million, an improvement of 4.4% compared to the end of September 2019, reports CDM. This performance is due to the good performance of almost all of the subsidiaries, particularly Crédit du Maroc Banque Offshore (25.5%) and Crédit du Maroc Patrimoine (15.7%).
In addition, CDM reports that customer employment increased by 4.9% compared to the end of September 2019, driven by business loans. They stand at 44.5 billion dirhams, despite the negative effects of the Covid-19 health crisis. Business loans have indeed maintained good momentum over the first nine months of 2020, resulting in an increase in outstandings of 7.7% to 21.1 billion dirhams, specifies CDM, noting that this dynamism is mainly carried through cash loans (+ 22.8%).
On the other hand, outstanding equipment loans and leasing were down by 1% and 0.6% respectively, in a context unfavorable to investment. Outstanding loans to individuals recorded a drop of 1.1% to 18.2 billion dirhams in connection with the health crisis which affected production. However, outstanding home loans show a certain resilience, posting an increase of 0.5%.
In addition, CDM shows an increase in balance sheet resources, at the end of September 2020, of 5% to more than 44 billion dirhams, under the effects of the increase in on-sight resources from 9.9% to 30.3 billion dirhams and the increase savings resources of 1% to 9.85 billion dirhams.
Regarding off-balance sheet resources, they saw their outstandings increase by 14.7% thanks to the increase in UCITS (+ 18.6%) and life insurance (+ 7.9%) outstandings.