Morocco's non-financial sector has witnessed a significant surge in credit, with an outstanding amount of 1.070 billion dirhams reported by the end of August. This growth is primarily driven by increased financing for private and public non-financial companies. According to the latest monetary statistics bulletin released by Bank Al-Maghrib, the annual growth rate of loans granted to private companies rose from 11% to 11.7% by the end of August.
The total outstanding credit to the private sector stood at 925.2 billion dirhams, representing an 8% monthly increase. Within this, private non-financial companies accounted for 498.2 billion dirhams, marking an 11.7% improvement from the previous month. Conversely, credits allocated to households reached 404 billion dirhams, with a growth rate of 3.4%. This household financing breaks down into 373.7 billion dirhams for individuals and Moroccan residents abroad, and 30.7 billion dirhams for individual entrepreneurs.
Public non-financial companies saw their credits increase by 4.4% in August, up from 3.7% in July, totaling 89.3 billion dirhams. Local administrations also contracted an outstanding amount of 55.6 billion dirhams during the same period. An analysis by economic object reveals a sustained rise in treasury facilities, with growth accelerating from 8.7% to 9.7%. This is largely attributed to a rise in treasury credits granted to private companies, which grew by 12.1%, compared to 10.9% the previous month.
Conversely, financing for treasury purposes for public companies decelerated, with growth dipping from 2% to 0.9%. Consumer credits witnessed an uptick in their growth rate, moving from 4.5% to 5%. However, equipment credits displayed a deceleration, from 25.7% to 25.5% by the end of August. This slowdown is primarily due to a decrease in the growth of loans to private non-financial companies from 18.5% to 17.4%, while credits to public non-financial companies accelerated from 5% to 7%.
The real estate credit segment remained stagnant, with a growth rate of 3.9%. Problem loans, or créances en souffrance (CES), saw an increase of 3.7%, following a 3.1% rise, and their ratio to total bank credit stood at 8.2%, up from 8.1% in July. These developments underscore a dynamic shift in credit allocation within Morocco's financial landscape, reflecting both challenges and opportunities for various economic sectors.
The acceleration in credit growth to the non-financial sector signals a positive trend for economic activity, suggesting increased investment and consumption. However, the slight deceleration in equipment credits and the stagnation in real estate credits indicate potential areas of concern that warrant monitoring. The central bank's monetary policy and regulatory measures will be crucial in guiding these trends.
As Morocco continues to navigate its economic trajectory, the role of the banking sector in facilitating growth through credit will remain pivotal. The trends observed in credit allocation, particularly the increased focus on private and public non-financial companies, reflect broader strategic objectives aimed at stimulating economic development and enhancing financial stability.
Key points
- Moroccan non-financial sector credits reached 1.070 billion dirhams by end-August.
- Annual growth in credits to private companies rose from 11% to 11.7%.
- Problem loans ratio increased to 8.2% from 8.1% in July.
