Bank of Africa, part of the BMCE Group, has reported a 10% increase in its net profit for the first half of 2026. The bank's net profit attributable to the group reached 2.5 billion dirhams, up from the same period last year. This growth comes despite a limited increase in net banking income and a decline in market activity revenues. The bank's performance was driven by an increase in recurring banking activities and a decrease in risk costs.
The bank's net banking income consolidated reached 10.5 billion dirhams, a 1% increase from the same period last year. This growth was driven by a 7% increase in interest margins and a 10% increase in commission margins. However, this was partially offset by a 37% decline in revenues from market activities. The bank's revenue structure showed a greater contribution from core banking activities, in a less favorable context for market activities.
The bank's operating expenses increased by 8% during the semester, which weighed on the expense-to-income ratio. The expense-to-income ratio stood at 44.2% at the end of June 2026, compared to 41.5% a year earlier. Despite this, the bank's gross operating profit decreased by 3% to 5.9 billion dirhams. The improvement in net profit was driven by a decrease in risk costs, which fell by 16% to 1.4 billion dirhams.
The decrease in risk costs supported the growth in net profit, and compensated for the effect of higher expenses and lower revenues from market activities. The risk cost ratio stood at 1%, compared to 1.5% at the end of the first half of 2025. The bank's commercial activity also showed growth, with a 4% increase in outstanding loans to customers, excluding "Resales" operations, which reached 243 billion dirhams.
The bank's deposits from customers, excluding "Repos" operations, also increased by 4% during the period, reaching 286 billion dirhams. The bank's social net profit also increased, albeit at a slower pace, with a 4% rise to 1.9 billion dirhams at the end of June. The bank's performance was driven by its core banking activities, which offset the decline in market activity revenues.
The bank's results were announced by La Nouvelle Tribune, which reported that the bank's net profit had increased despite a challenging market environment. The bank's management has attributed the growth in net profit to its focus on core banking activities and its efforts to reduce risk costs.
The Bank of Africa's performance for the first half of 2026 reflects the bank's resilience and ability to adapt to changing market conditions. The bank's growth in net profit and its improvement in risk costs demonstrate its commitment to delivering long-term value to its shareholders.
Key points
- Bank of Africa reports 10% increase in net profit to 2.5 billion dirhams for the first half of 2026.
- The bank's net banking income consolidated reached 10.5 billion dirhams, a 1% increase from the same period last year.
- The bank's risk cost ratio stood at 1%, compared to 1.5% at the end of the first half of 2025.
