Nonperforming loans in Morocco’s banking sector declined by 2.7 percent in 2024 to 97.4 billion dirhams, according to Bank Al-Maghrib’s latest annual supervisory report, signaling an improvement in credit quality, with NPLs now accounting for 8.4 percent of total loans.
The data shows a 4.1 percent rise in loans under watch to 6.5 billion dirhams, while doubtful debts fell by 1.7 percent to 8.7 billion dirhams. Irrecoverable debts rose 3.1 percent to 82.2 billion dirhams, continuing to dominate the NPL structure.
Provision coverage increased to 69 percent overall, including 76 percent for irrecoverable debts, 45 percent for doubtful debts, and 11 percent for loans under watch. NPLs among households climbed 6.7 percent to 44.6 billion dirhams, while non-financial firms held 70.1 billion dirhams.
Despite sectoral risks, including in trade and construction, the banking system showed resilience and improved provisioning rates.
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