Bank Al-Maghrib recorded a negative net result of about MAD 412 million last year, after years of achieving average profits of nearly one billion dirhams.
In 2021, the Central Bank of Morocco achieved profits of about MAD 937 million, and in 2020 it amounted to MAD 1.68 billion, compared to MAD 1.66 billion in 2019, and part of these profits is transferred to the state treasury, which amounted to MAD 738 million last year.
According to what was stated in the Bank Al-Maghrib financial position document included in the annual report for the year 2022 that was presented to King Mohammed VI last week, the shift from profitability to losses was the result of 3 main factors: the strong rise in sovereign bond prices, the tightening of monetary conditions, and the decline in the value of dirham.
The bank stated in its annual report that last year witnessed a strong decline in the result of exchange reserves management operations, as it recorded minus MAD 1.2 billion due to the contraction of the net return of the bond investment portfolio, as a result of the increases in the main interest rates of the US Federal Reserve by plus 425 basis points and the European Central Bank by 250 basis points.
Bank Al-Maghrib’s income mainly includes revenues from using it for the state’s balance of hard currency, whether through purchasing treasury bonds in America or depositing them in foreign banks to receive interest on that, in addition to revenues from lending to Moroccan banks according to the main interest rate that was set at 2.5% last year, currently at 3%.
A hike in the key interest rate is positive for the central bank in terms of the benefits of its lending to commercial banks; However, this negatively affects the treasury bonds that he buys, because the rise in the main interest means a decrease in its value in the market.
The losses were also driven by a growth as a result of monetary policy operations by 24 percent, last year, to MAD 1.5 billion.
This development is due to the rise in bank facilities due to the exacerbation of the liquidity deficit and the increase in the main interest rate in September and December by a total of 100 basis points, to reach 2.5% at the end of 2022.
The result of the Central Bank of Morocco was also affected by the increase in net exchange commission operations, which increased by 90%, due to the growth in sales of foreign bank notes by banks at Bank Al-Maghrib.
The general costs of exploitation also witnessed a rise, albeit by a slight rate, by about 4%, to reach MAD 2 billion, as a result of the increase in operating costs in the context of the escalation in commodity prices.
The bank was also affected by the performance of the social solidarity contribution imposed on profits, which amounted to MAD 96 million in the previous year.
In general, the total revenues of Bank Al-Maghrib last year amounted to about MAD 6.8 billion, an annual increase of about 30%. On the other hand, costs amounted to MAD 7.2 billion, an increase of 67%. Which produced a negative net result of about MAD 412 million.
add your comment
Terms of publication : Not to offend the writer, people, sacred things, or attack religions or the divine self, and refrain from racist incitement and insults.