Morocco’s listed banks post modest H1 growth as high rates weigh on market income

Morocco’s seven banks listed on the Casablanca Stock Exchange recorded modest growth in net banking income during the first half of 2026, as continued expansion in lending and other core activities was offset by pressure on market-related revenues from high interest rates.

The seven banks posted combined net banking income of about 49.8 billion dirhams ($5.4 billion) through June, up 1.5% from the same period a year earlier.

The overall figure, however, masked a significant shift during the first half of the year. Combined net banking income fell 4.4% in the first quarter, marking the sector’s first quarterly decline since early 2021, before rebounding 7.1% in the second quarter.

Market activities accounted for much of the pressure at the beginning of the year, as elevated interest rates and increased government financing needs weighed on Morocco’s domestic financial markets. Significant fundraising operations during the first months of the year also affected revenues at several banks.

The pressure came despite improving macroeconomic conditions during the period.

Inflation remained below 2%, while agricultural output benefited from more favorable weather conditions compared with the previous year. Construction and real estate activity also remained dynamic, supported in part by projects and investment linked to preparations for the 2030 FIFA World Cup.

Banks also benefited from strong performance in life insurance and higher metal prices.

The seven listed banks account for about 26% of the total revenue generated by companies listed on the Casablanca Stock Exchange, making their financial performance an important indicator of broader economic and financial trends in Morocco.

Attijariwafa Bank leads sector

Attijariwafa Bank remained by far the largest contributor to the sector’s net banking income, reporting 18.4 billion dirhams, an increase of 4%.

Banque Centrale Populaire ranked second, with net banking income of about 13.5 billion dirhams. Its income fell 3.2%, weighing significantly on the sector’s overall performance because of the group’s large share of the market.

Bank of Africa reported net banking income of about 10.5 billion dirhams, up 1.5%.

Among the smaller listed institutions, Crédit du Maroc recorded the strongest growth, with net banking income rising 7.8% to about 1.9 billion dirhams.

CFG Bank followed with 6% growth, while Crédit Immobilier et Hôtelier, known as CIH Bank, posted a 2.8% increase. BMCI recorded growth of 1%.

Six of the seven listed banks ended the first half with positive growth, while Banque Centrale Populaire was the only institution to report a decline.

Lending continues to expand

The banks’ core lending activity continued to grow despite relatively high borrowing costs.

Combined outstanding loans issued by the seven banks exceeded 1.3 trillion dirhams at the end of June, up from about 1.235 trillion dirhams a year earlier.

The increase points to continued demand for financing from both businesses and households.

Attijariwafa Bank held the largest loan portfolio, exceeding 464 billion dirhams, followed by Banque Centrale Populaire with about 338 billion dirhams and Bank of Africa with more than 243 billion dirhams.

Lending was distributed across equipment financing, mortgages and treasury financing for businesses, as well as consumer and housing loans for households.

CIH Bank recorded the strongest percentage increase in outstanding loans, rising from 92.9 billion dirhams to about 119 billion dirhams.

CFG Bank’s loan portfolio grew by nearly 20% to more than 20 billion dirhams. Crédit du Maroc and BMCI also recorded increases, with outstanding loans reaching 64.3 billion dirhams and 59.4 billion dirhams, respectively.

Deposits provide strong funding base

Bank deposits also continued to expand, providing the sector with a solid funding base.

Combined deposits at the seven listed banks approached 1.5 trillion dirhams at the end of June, supported particularly by growth in demand deposits held by households and businesses.

CIH Bank’s deposits exceeded 100 billion dirhams for the first time, reaching 102.2 billion dirhams compared with 89.7 billion dirhams a year earlier.

CFG Bank’s deposits rose from 18.9 billion dirhams to 22.1 billion dirhams, while Crédit du Maroc and BMCI increased their deposits to 63.9 billion dirhams and 51.7 billion dirhams, respectively.

The figures highlight a divergence in the sector’s first-half performance: lending and deposits continued to expand, signaling sustained banking activity, while market-related operations remained more vulnerable to elevated interest rates.

The banks’ performance in the coming months will depend in part on their ability to maintain growth in lending and deposits while containing the impact of funding costs and market volatility on margins and revenues.