fghSociété Générale Maroc Reports Steady Profits Through September 2024

Tuesday 26 November 2024 - 16:35

Société Générale Maroc has announced nearly stable financial results as of September 30, 2024. Despite slight contractions in certain areas, the bank has demonstrated resilience and growth in key financial indicators.

Credit and Deposits Performance

As of the end of September 2024, loans to customers on a standalone basis amounted to 78 billion dirhams (MMDH), reflecting a 2.15% decline compared to December 2023. On a consolidated level, loans reached 92 MMDH, showing a decrease of 1.94%. This reduction is primarily attributed to an exceptional base effect from treasury loans recorded in 2023.

Conversely, customer deposits exhibited solid growth. Standalone deposits increased by 3.37% to reach 83 MMDH, while consolidated deposits grew by 5.02%, totaling 91 MMDH. This growth was supported by contributions from subsidiaries.

Improved Net Banking Income

The bank's net banking income (NBI) posted strong growth during the third quarter. On a standalone basis, the NBI rose by 6.69% to 3.86 MMDH, driven by increases in interest margins and commissions. Consolidated NBI increased by 4.36% to 4.31 MMDH, fueled by subsidiary contributions and enhanced performance across various banking sectors.

Cost Optimization and Efficiency Gains

Operating expenses presented mixed trends. On a standalone basis, general expenses increased slightly by 1.32%, whereas consolidated expenses declined by 3.22%, reflecting successful cost optimization efforts. These measures led to an improvement in the cost-to-income ratio, which decreased from 49.47% to 46.98%, a gain of 249 basis points.

Marginal Decline in Net Profit

The bank recorded a consolidated group net income of 958 million dirhams by the end of September 2024, a marginal decline of 0.7% compared to 965 million dirhams in the same period of the previous year.

Resilience in a Challenging Environment

Despite a challenging economic environment, Société Générale Maroc's financial performance underscores its ability to adapt and maintain profitability. The bank’s steady growth in deposits, coupled with improved operational efficiency, positions it well for sustainable performance in the future.

This performance demonstrates the institution's strategic focus on growth through diversification and cost control, reflecting its continued commitment to serving its customers effectively while maintaining robust financial health.