Moroccan banking giant Attijariwafa Bank posts $315 million profit as provisions drop

Attijariwafa Bank, Morocco’s leading financial services group owned by the Alaouite royal family of Morocco, reported a net profit attributable to shareholders of MAD2.9 billion ($315.69 million) for the first quarter of 2026, reflecting a modest 3.6% increase from the same period a year earlier.

The Casablanca-based bank, with a market capitalization of MAD150.31 billion ($16.36 billion), delivered stronger growth at the group level, with consolidated net income rising 5.5% to MAD3.5 billion ($381.03 million), supported by steady revenue expansion despite a challenging global backdrop.

Profit growth driven by lower risk costs

Revenue rose 2.9% year-on-year to MAD9.3 billion ($1.01 billion), as higher lending volumes and deposit growth supported core banking activities. Net interest income climbed 7.8%, while fee income increased 4.2%, reinforcing the bank’s diversified income streams.

The key driver of profitability, however, was a sharp reduction in loan-loss provisions, which fell 33.3% to MAD609 million ($66.3 million). The cost of risk improved significantly to 0.51% of gross customer loans, down from 0.82% a year earlier, signaling stronger asset quality and reduced pressure from non-performing loans.

Operating costs weigh on margins

Operating performance remained relatively subdued. Gross operating income edged up 1% to MAD6 billion ($653.18 million), as rising expenses and continued investment programs tempered earnings growth.

General operating expenses increased 6.1%, pushing the cost-to-income ratio to 31.3%. While higher, the ratio remains within industry norms, reflecting disciplined cost management amid ongoing expansion efforts.

Balance sheet strength improves

On the balance sheet, the group continued to reinforce its financial position. Consolidated equity rose 9.9% year-on-year to MAD83.7 billion ($9.11 billion) as of March 2026.

Customer deposits grew 10.8% over the same period, underscoring strong franchise confidence, while consolidated loans expanded 5.7%, driven by sustained credit demand across its core markets.

Expansion across Africa amid global uncertainty

Attijariwafa Bank, Morocco’s largest bank and the fifth-largest in Africa, boasts a century of expertise and a global presence with 20,125 employees across 25 countries. Headquartered in Rabat, the bank serves a diverse clientele of 10 million retail, professional, corporate, and institutional customers.

The Alaouite royal family is the largest shareholder in Attijariwafa Bank, holding more than 46% stake in the financial services group through Societe Nationale d’Investissement (Al Mada), a private equity firm engaged in strategic investments across vital sectors of Africa’s economy.

Despite operating in what the bank described as an uncertain geopolitical environment, Attijariwafa Bank entered the remainder of 2026 on a stable footing.

The lender is expected to maintain its focus on profitability while expanding lending activities across its key markets, particularly in Morocco and sub-Saharan Africa, where it continues to deepen its regional footprint.