net profit up, but still below pre-covid-19 levels

(Ecofin Agency) – Attijariwafa Bank announces an increase in net profit in 2021. But non-operational factors explain this performance. The group will also wait to recover to pre-covid-19 levels, and the risk of African business remains a concern for analysts.

Attijariwafa Bank, the fourth Moroccan banking group in Africa in terms of market capitalization, announced to its investors that it ended the year 2021 with a consolidated net profit and a net profit share of 6.2 billion dirhams (653 .4 million dollars) and 5.1 billion dirhams, up by +66.2% and +70.5%, we learn from a financial communication made to investors.

The group explains this evolution of things by a good operating performance and the drop in non-performing receivables which reduces the cost of risk in its balance sheet. ” The operating result recorded an increase of +53.7% to reach 9.5 billion dirhams, thanks to a confirmed discipline in terms of cost control and the gradual normalization of the cost of risk”, he explains.

The financial communication currently available does not make it possible to read all the indicators. But with net banking income which rose by 2.2%, it cannot be ruled out that the sharp increase in net income is due to a low basis of comparison. In 2020, this indicator had fallen by more than 48% taken in dollars, mainly due to provisions made for credit repayment risks.

Attijariwafa Bank, however, still needs to work to achieve pre-covid-19 profitability levels. An aspect recognized by its board of directors and the rating agency Fitch Ratings. “We expect the recovery to continue in 2022, with improving trading conditions and decreasing impairment charges. However, a return to historic levels of around 2.5% is unlikely,” can we read in the related note.

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