Morocco's BMCE Bank reports 10 pct drop in 2018 profit, plans capital increase
- Africa Finance
RABAT (Reuters) - BMCE Bank, one of Morocco’s largest lenders, reported on Monday a 10 percent fall in its 2018 net profit attributable to shareholders due to a drop in activities in its African branches.
Profit stood at 1.83 billion dirhams ($190 mln) in 2018, down from 2.03 billion dirhams in 2017.
African branches accounted for 46 percent of profits, while Morocco and Europe represented 48 percent and 6 percent, respectively.
Net banking income dropped 1 percent to 13.23 billion dirhams, while the cost of risk rose 2 percent to 1,83 billion dirhams.
BMCE said it will distribute 900 million dirhams in annual dividends of 5 dirhams per share that can be optionally converted into shares.
It plans a capital increase this year through a public offering of 1 billion dirhams, adding that it expects 2 billion dirhams to be injected by a foreign investor soon.
Reporting by Ahmed Eljechtimi, editing by Louise Heavens