The Casablanca Stock Exchange reported a positive performance in 2023, with a 4.4% increase in turnover to 303.6 billion dirhams (around $28.8 billion), a growth that was driven primarily by the banking sector, which contributed 73% to the overall increase and saw its profits rise by 2.6 billion dirhams.
The report by “Morocco Brokerage Services” (MSIN) highlights the banking sector’s strength in navigating economic and climate challenges.
Banks adapted by adopting new credit risk management methods and diversifying financing products in response to interest rate fluctuations and high loan costs. Additionally, foreign subsidiaries, particularly those in Africa, contributed to the financial stability of major Moroccan banks.
Government intervention since the pandemic further bolstered the sector with support programs for small and medium enterprises, along with guarantees in major financing initiatives, providing a crucial buffer.
Banks also benefited by diversifying credit offerings to counter the effects of inflation as the report noted a significant increase in profits from commissions, interest margins, and operating results across all seven banking groups within the sector.
The MSIN report also identifies promising financial values for investors beyond banking, especially for companies in the construction, public works, and distribution sectors defied economic headwinds and exhibited positive performance.
The construction and public works sector witnessed an 11% turnover increase (2.8 billion dirhams), while the distribution sector saw a 10% increase (2.3 billion dirhams), largely driven by La Belle Vie’s performance (1.8 billion dirham increase). La Belle Vie’s success can be attributed to the inflationary environment and its expansion into new distribution networks.
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