Morocco’s Bank of Africa (BOA) reported a 9 percent rise in net profit for the first quarter of 2026, supported by lower risk costs and stronger core banking activity, even as overall banking income declined.
The bank said net profit attributable to shareholders reached 1 billion dirhams (US$109 million) in the January–March period, up from 920 million dirhams a year earlier.
The performance came despite a 2.2 percent drop in consolidated net banking income to 4.86 billion dirhams, reflecting weaker market-related revenues compared with the same period in 2025.
BOA attributed the decline mainly to reduced income from market operations, which were affected by a less favourable trading environment.
However, core operations remained resilient. Net interest income rose 6 percent to 3.75 billion dirhams, while fee-based income increased 11 percent to 1.07 billion dirhams, helping to stabilise overall earnings.
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The bank also benefited from a significant reduction in the cost of risk, which fell 28 percent year-on-year to 677 million dirhams. In Morocco, the decline was even sharper at 43 percent, reflecting improved credit quality and tighter risk management.
Operating expenses rose 7.5 percent to 1.92 billion dirhams, driven in part by ongoing investment in digital transformation initiatives across the group.
Customer deposits increased 3 percent from the end of 2025 to 283 billion dirhams, while customer loans rose slightly by 1 percent to 236.6 billion dirhams.
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The results suggest that BOA’s profitability is increasingly being supported by efficiency gains and risk control measures rather than revenue expansion, as market conditions remain uneven.
Looking ahead, the bank said it will continue prioritising digitalisation, expansion of services for small and medium-sized enterprises, and support for financial inclusion through fintech partnerships and new products targeting micro-enterprises.
Analysts note that Moroccan banks have generally remained resilient despite global financial uncertainty, supported by relatively stable domestic demand and cautious lending practices.
BOA’s latest results reinforce its position as one of the leading banking groups in Morocco and across Francophone Africa, with a growing focus on digital banking and regional expansion.
