(Ecofin Agency) - The initial financial results of Attijariwafa Bank, Africa's third-largest banking group by stock market value, for the first six months of the year are threatened by the current pandemic context. The bank’s managers predict a “significant decline” in net income group share, both for the first half and for the whole year.
Like many other African banks, Attijariwafa experienced a “significant deterioration in credit risk” due to the pandemic and had to set funds aside to deal with the risks. More details on the group's performance over the reviewed period will be indicated in the result report to be issued on September 22. In the meantime, certain indicators relating to banking operations are on the rise. Net banking income for H1 2020 is MAD6.3 billion ($688 million), up 8.6% compared to the same period in 2019.
As a reminder, Attijariwafa Bank was already in a fragile context before the coronavirus pandemic broke out, according to data from Capital IQ. The progression of its net income has been very weak over the last three years. From +13.3% at the end of 2017, it dropped to only +5.8% in 2018 and +1.9% at the end of 2019. For the 12 months ending in March 2020, net income fell by 5.3%.