A recent report by Fitch Ratings said Moroccan banks’ strong profitability should continue in 2025 and 2026, with the operating environment becoming increasingly favorable for business generation.
The report, titled “Moroccan Bank Growth Prospects: Reforms to Support Further Strong Performance,” highlighted that large infrastructure and industrial projects—requiring over $100 billion in financing between 2025 and 2030—are expected to drive annual credit growth, averaging 6-7% in the coming years.
It additionally noted that sound economic growth supports improvements in Morocco’s operating environment, expected to outperform the MENA median due to large investment projects.
Fitch also predicted annual GDP growth of 3.8% for 2025-2026 and noted that structural reforms, like creating a secondary market for non-performing loans (expected to become law this year), could be credit-positive for banks.
Morocco’s operating conditions, according to the same source, “are more favorable than most of its African peers, reflected in Fitch’s “bb” operating environment score for domestically focused banks. “
It explained that this ranks second among African banking sectors, just below Mauritius and above South Africa, Morocco’s closest peers.
Fitch argued however that structural constraints limit further improvement in Morocco’s operating environment score, including low GDP per capita (2024: $4,021), reliance on agriculture (12% of GDP, 30% of employment), high unemployment (2025 forecast: 12.5%), and weaker human development and governance indicators.
It mentioned that credit demand is expected to benefit from strong non-agricultural growth in 2025-2026, driven by tourism, construction, and major sports events.
The report highlighted that “investment loans, up 14% year-on-year in the first 10 months of 2024, are likely to lead medium-term credit growth, supported by large investment plans,” underscoring that major banks are well-positioned to capitalize on these opportunities.
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