Lower risk costs, not revenue growth, drive Moroccan bank profits

Profits at Morocco’s seven listed banks rose 6.7% to MAD 13.35 billion in the first half of 2026, even as combined banking income increased just 1.34%, with a sharp drop in provisions for credit risk doing much of the work.

The banks’ cost of risk fell from MAD 6.9 billion a year earlier to MAD 4.5 billion, a reduction of about MAD 2.4 billion. That saving was nearly three times the roughly MAD 840 million increase in combined net profit, showing how strongly improving asset quality supported earnings.

Underlying business remained positive but less spectacular. Outstanding loans exceeded MAD 1.3 trillion and deposits approached MAD 1.5 trillion. Net interest income rose 8.1% and commissions increased 6.6%, but market-related revenue fell 22.7%, limiting overall banking-income growth to MAD 49.7 billion.

The contrast was particularly clear at Banque Centrale Populaire. Group net profit increased 10.4% to MAD 3.22 billion even though banking income fell 3.2% and operating profit declined 9.7%. Its cost of risk dropped from MAD 2.7 billion to MAD 1.08 billion.

Attijariwafa Bank followed a different path, with profit up 1.1% to MAD 5.94 billion alongside 4% growth in banking income and double-digit increases in both loans and deposits.

Attijariwafa Bank, BCP and Bank of Africa together generated about 87% of sector profits, while smaller lenders recorded faster percentage growth, led by BMCI at 58.2%.

The question for the second half is whether profit growth can continue once the benefit from falling provisions becomes harder to repeat. The seven banks have already generated 56.3% of analysts’ projected full-year profit of MAD 23.69 billion, leaving stronger operating income increasingly important if risk costs stabilize.

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