(Ecofin Agency) - The Board of Crédit du Maroc has proposed that the bank’s shareholders receive a dividend of MAD18.7 per share for the financial year 2019. If this proposition is accepted, the first payment will occur next June 19. For this investment, the bank will use its net profit of the year (MAD406.32 million) and part of its buffers up to MAD818.52 million.
This reward is 133% higher than that of 2018. It is also the strongest annual increase in dividend, according to market data available since 2002, consulted by Ecofin Agency. However, this generous dividend contrasts with the rather mixed financial performance in 2019, when total revenues stood at $221.3 million, down 1.4% compared with 2018.
Net profit also dropped by 13.7% YoY. The bank's profitability analysis also shows a contraction in profitability. Indeed, the return on assets was 0.9% compared to 1.1% in 2018, and the return on shareholders' equity was 9.5% compared to 12.1% the previous year.
Interest income remained on an upward trend with an increase by 3.4% YoY, although weaker than the 4.2% increase in fiscal year 2018.
The big winner from this generous dividend is the French group Crédit Agricole, the majority shareholder of the Moroccan bank with 78.7% of the capital. Crédit Agricole will receive MAD 2.28 billion (€215.1 million) as gross dividend, before deduction of taxes and exchange costs.