(Ecofin Agency) - Despite being in the red, the net result of Morocco's Islamic banking sector improved in 2022 compared to 2021 and 2020. The increased general operating expenses continued to impact the results of the five Islamic banks and three others with Islamic windows in the Kingdom.

As of December 31, 2022, Morocco's Islamic banking sector, comprising five Islamic banks and three others with Islamic windows, reported a net loss of 129.3 million Dirhams ($13.2 million). This information was revealed in the annual report on banking supervision for the year 2022, published by the Central Bank of Morocco on Monday, July 24.

Although in deficit, the net result of the Islamic banking sector showed improvement compared to 2021 (-206.8 million Dirhams) and 2020 (-350.9 million Dirhams).

The net loss can be attributed to a 6% rise in the general operating expenses of the Islamic banking sector, amounting to 741.1 million Dirhams. Among these expenses, external costs saw the most significant increase of 12% over the year, followed by personnel costs, which rose by 9%. In such circumstances, the aggregated gross operating result of the sector reached -74.3 million Dirhams in 2022, compared to -175.6 million Dirhams in 2021 and -321.1 million Dirhams in 2020.

The net banking income of participatory banks and windows showed a significant improvement in 2022, reaching 799.2 million Dirhams by the end of the year (compared to 615.6 million Dirhams in 2021). Additionally, the commission margin increased by 27% to reach 77.8 million Dirhams.

Chamberline Moko