The profit pool of companies listed on the Casablanca Stock Exchange stood at 17.4 billion dirhams (MMDH) for the past year, down sharply by 35.5% compared to 2019, according to BMCE Capital Research (BKR).
“Having suffered from the effects of the health crisis on the operational side as well as by the impact of contributions voluntarily subscribed to the Covid-19 Fund, in particular for financials (51.8% of total contributions), the overall beneficiary capacity is deteriorating by 35 , 5% to 17.4 billion dirhams “, indicates the research company in its analysis document” Earnings FY 2020 “.
Excluding the impact of these contributions, ie 4.2 billion dirhams net, the overall net profit attributable to the group (RNPG) would come out less sharply by 20% to 21.6 billion dirhams, note BKR analysts.
In detail, the RNPG of industrial companies recorded a drop of 16% to MAD 10.8 billion, weighed mainly by the poor behavior of real estate, under the combined effect of the drop in turnover and the maintenance of incompressible charges as well. than the recognition by operators of provisions for updating the valuation of certain assets.
This decline is also due to the poor performance of Ciments du Maroc which lost 365 million dirhams in its Bottom-line given the decline in its commercial achievements coupled with the recognition of a donation of 100 million dirhams to the Covid-19 Fund and Marsa Maroc suffering from the double effect of the donation of MAD 300 million paid for the benefit of the Special Fund for the management of the pandemic and the net deficit generated by the new subsidiary Tanger Alliance.
Shaken by the deterioration of the global economic context, the net income of financials deteriorated by 56.7% to 5.5 billion dirhams, suffering in particular from the increase in general operating expenses taking into account donations to the Covid-19 Fund for an impact gross of 3.5 billion dirhams and on a larger scale, the deterioration in the cost of risk (+ 2.4x to 17.7 billion dirhams, i.e. an average cost of risk rate of 1.8% against 0.8% in 2019 ) following the adoption by the Banks of an anticipatory and prudent provisioning policy, the same source said.
The earning capacity of the Insurance / Brokerage sector shows a decrease of 23.3% to 1.2 billion dirhams, resulting from the decline in net income of Wafa Assurance (-245 million dirhams) and Saham Assurance (-205 million dirhams) in mainly due to the underperformance of the financial markets as well as the suspension or decrease of dividend payments from subsidiaries.
On the other hand, AtlantaSanad recorded a 26.8% increase in its bottom-line, benefiting in particular from capital gains resulting from the creation of an OPCI (nearly 230MDH) as well as the spread over 5 years of the contribution to the Special Covid-19 fund for which it has opted for the consolidated accounts.
The document also shows that the profit growth of the BKR 40 scope of BKR (i.e. 90% of capitalization and restated for securities that have not published their net profit) is down by 30% against an expectation of -17.2%. for the latest adjusted forecast from the research firm, a completion rate of nearly 86%.
This rate covers a realization rate of 72% for financials, due to the observation by the banking sector of provisions in 2020 that are greater than expected, leading to a sharp increase in the cost of risk and a net income generated by Insurance companies exceeding by 27% forecast from BKR, mainly due to an exceptional catch-up in the second half of 2020 for Wafa Assurance’s net income linked in particular to the unexpected distribution of dividends by certain companies.
It also covers a difference of 12% compared to BKR’s forecasts for the industrial rating, mainly explained by the non-anticipation of the loss made by the subsidiary of Marsa Maroc (Tanger Alliance) and the recognition by the real estate sector of provisions. for depreciation of assets showing significant losses in 2020.