CIH Bank announces significant capital increase of MAD 1.5 billion

Tuesday 13 May 2025 - 16:10

By: Dakir Madiha

CIH Bank announces significant capital increase of MAD 1.5 billion

CIH Bank is poised to undertake a substantial financial maneuver, revealing plans to increase its capital by up to MAD 1.5 billion (approximately $161 million). This announcement comes ahead of an extraordinary general meeting scheduled for June 11, where shareholders will deliberate on the proposed increase.

The capital enhancement will be executed through the issuance of new shares financed by cash contributions, ensuring that existing shareholders retain their subscription rights. Company officials have indicated that this initiative may be implemented in one or several phases over the next three years, depending on the strategic decisions made by the board of directors and the CEO.

This strategic move follows a robust financial performance in 2024, during which CIH Bank reported a consolidated net profit of MAD 966 million ($96.6 million), reflecting a remarkable 24.3% increase from the prior year. The bank also achieved a 6.1% growth in net banking income, reaching MAD 4.74 billion ($474 million).

Additionally, CIH Bank has demonstrated effective risk management, with consolidated risk costs decreasing by 16.3% to MAD 1.07 billion ($107 million). This prudent approach has led to a net profit of MAD 875.9 million ($87.59 million), showcasing a significant improvement of 23.3%.

The upcoming extraordinary general meeting presents a vital opportunity for shareholders to vote on this proposed capital increase, which could substantially bolster the bank's financial standing.

In a bid to enhance its services for Moroccans living abroad, CIH Bank has recently launched CODE 212. This initiative aims to simplify remote banking, enabling expatriates to open and manage bank accounts online and facilitate swift money transfers.

Furthermore, CIH Bank has partnered with Google to introduce Google Pay for its clients in Morocco, allowing MasterCard cardholders to utilize contactless payment options.