CIH Bank: Commercial indicators up sharply at the end of December 2023
During 2023, the CIH BANK Group continued its effort to finance the national economy and financial inclusion, particularly for women and young people. This growth dynamic was based on the development of its digital services and the regular expansion of the Bank's network and its subsidiaries with the opening of 14 new branches and the installation of 100 new ATMs, thus bringing the total number of branches at 408 and ATMs at 844. Thus 460,000 new customers joined the CIH BANK group.
• Customer deposits
With a net collection of MAD 5.3 billion at the end of December 2023, customer deposits increased by +7.6% compared to December 2022, and stood at MAD 74.2 billion. On an individual basis, these deposits are essentially composed of those of CIH BANK for 65.9 billion dirhams and those of UMNIA BANK for 4.9 billion dirhams. Demand deposits constitute 83% of customer deposits at the end of December 2023, i.e. the same percentage level observed in 2022 and thus consolidating the optimization of the cost of resources.
• Customer credits
Up 8.8% compared to December 2022, consolidated outstanding credits reached MAD 90.8 billion. On an individual basis, CIH BANK's credits stand at MAD 69.7 billion, while SOFAC and UMNIA BANK contribute respectively MAD 13.9 billion and MAD 7.1 billion. Representing 48% of outstanding consolidated loans, non-real estate loans recorded an increase of 9.9% compared to December 2022, to stand at MAD 44.0 billion, confirming the bank's policy of diversification of customer employment. The consolidated balance sheet total stands at MAD 125.4 billion, an increase of 7.1% compared to December 2022. The commercial dynamic was reflected in the improvement in the market shares of the CIH BANK Group. At the end of December 2023, the Group represents 27% of automobile financing (+272 Pbs), 6% of consumer loans (+63 Pbs) and 9.7% of real estate loans intended for housing (+26 Pbs). The Group's market share of customer deposits stands at 6.0% (+10Pbs).
Indicators Results:
The consolidated NBI amounts to MAD 4,468.2 million, an increase of +27.0% compared to December 2022. This development results from the increase in the net interest margin of 8.6% and the performance of the banking activity. market at the end of December 2023 compared to the end of 2022. In social terms, CIH BANK's net banking income stood at MAD 3,700.2 million, up +32.8% compared to December 2022.
The consolidated cost of risk stands at MAD 1,280.6 million, an increase of 116.9% compared to December 2022. The cost of risk rate at the end of December 2023 thus stands at 1.16% compared to 0. 71% a year ago. This increase reflects the prospective and prudent provisioning policy adopted by the Group. In social terms, the cost of risk amounts to MAD 851.1 million compared to MAD 344.8 million corresponding respectively to a cost of risk rate of 1.13% in December 2023 compared to 0.48% at the end of 2022. The consolidated net result amounts to 776.9 MDH compared to 710.9 at the end of December 2022, an increase of 9.3%.
The Group's share of net income stands at MAD 710.4 million at the end of December 2023 compared to MAD 669.1 million at the end of December 2022. In social terms, the net income amounts to MAD 620.0 million at the end of December 2023 compared to 592.7 million. MDH compared to the end of 2022, an increase of 4.6%.
The growth in activity and the diversification of the bank's jobs towards corporate clients has led the bank to implement a prospective and prudent risk hedging strategy. Following the occurrence of anomalies in certain factoring operations with some clients, CIH BANK quickly reacted and implemented corrective measures allowing the bank to recover its rights and safeguard its interests. It should be noted that the entire factoring portfolio has been the subject of an exhaustive analysis. The accounts closed at the end of December 2023 include provisions covering residual risks and prospective risks to date, relating to this activity.