CIH Bank reports impressive growth in 2024 financial results

Friday 14 March 2025 - 16:16

By: Dakir Madiha

CIH Bank reports impressive growth in 2024 financial results

In a recent meeting chaired by Mr. Lotfi Sekkat, the Board of Directors of CIH Bank convened on two occasions—February 26 and March 11, 2025—to review the bank's performance and consolidated financial results for the year ending December 31, 2024. These results were unveiled on March 13, 2025, during a conference held in Casablanca.

The bank reported that its net profit attributable to the group's shareholders (RNPG) reached 875.9 million dirhams (MDH) in 2024, reflecting a notable increase of 23.3% compared to the previous year. The consolidated net profit rose by 24.3% to 966 MDH at the end of December.

In terms of social performance, the net profit achieved 750 MDH, marking a 21% increase from 620 MDH in the preceding year. A spokesperson for CIH Bank elaborated, “These results highlight the robustness of the Group's fundamentals, along with its capacity for adaptation and digital innovation, enabling sustained growth and long-term value creation while optimizing risk management.”

The consolidated net banking income (PNB) amounted to 4,739.5 MDH, a year-on-year increase of 6.1%. This growth was chiefly driven by a 6.8% improvement in the net interest margin and a remarkable 17.9% rise in net commission income.

The structure of the net banking income remained stable, with 63% contribution from net interest margin, 9% from net commission income, and 21% from market activities. Despite maintaining a conservative risk management policy, the consolidated cost of risk decreased by 16.3% to 1,071.6 MDH, resulting in a cost of risk ratio of 0.85%, down from 1.15% at the end of December 2023.

Client deposits recorded a net increase of 10.3 billion dirhams (MMDH), representing a growth of 13.9% year-on-year and totaling 84.5 MMDH, up from 74.2 MMDH in 2023. Individually, these deposits are primarily held by CIH Bank (73.6 MMDH) and UMNIA BANK (6.3 MMDH).

Demand deposits comprise 84% of total client deposits as of December 31, 2024, illustrating a 14.9% increase, which further aids in optimizing resource costs.

Furthermore, consolidated credit volume rose by 11.5% to 101.2 MMDH. On an individual basis, CIH Bank's loans amounted to 75.8 MMDH, while SOFAC and UMNIA BANK contributed 16.5 MMDH and 8.8 MMDH, respectively.

The total consolidated balance sheet witnessed a 12.4% increase, reaching 141 MMDH.

Following the presentation of the annual results and upon reviewing the reports from the Audit and Risk Committees as well as the auditors' reports, the Board of Directors approved the social and consolidated accounts as of December 31, 2024. They also resolved to recommend a dividend distribution of 14 dirhams per share to the General Assembly.