Banks: 94.8 billion dirhams of outstanding debts in 2023 (BAM)

by times news cr

2024-07-28 18:41:25

The loss rate resulting from these receivables was 8.5%, BAM said in its 20th annual report on banking supervision.

By risk level, the outstanding amount of pre-doubtful debts fell by 5.6% to 6.2 billion dirhams, while that of doubtful debts increased by 5.2% to 8.9 billion dirhams, the same source said.

Compromised debts, for their part, increased by 8% to 79.7 billion dirhams. The share of pre-doubtful debts in the total of outstanding debts thus contracted by one point to 7% and that of compromised debts showed an increase to 84%. The share of doubtful debts, for its part, remained at 9%.

BAM also reported that provisions for non-performing loans increased by 5.3%, leading to a provisioning rate down to 67% year-on-year.

This rate comes to 74% for the category of compromised debts, 49% for doubtful debts and 7% for pre-doubtful debts.

Furthermore, the report indicates that banks have constituted 13.9 billion dirhams of general provisions to cover sensitive debts. These provisions represent 1.4% of healthy credits.

On a consolidated basis, outstanding receivables from customers of the 11 banking groups total MAD 131.9 billion, an increase of 2.1% compared to the end of 2022. This results in a risk rate down by 0.2 points to 9.2%.

As for the provisions set up by the 11 banking groups to cover non-performing debts, they increased by 2.6% to nearly 89 billion dirhams. This results in a stable coverage rate of 67%.

Bad debts carried by subsidiaries abroad, particularly in sub-Saharan Africa, totaled an outstanding amount of MAD 16.6 billion, representing a risk rate down 1.3 points to 7.3%. The coverage rate of these debts by provisions improved by 0.4 points to 81.1%.

In addition to the provisioning of non-performing receivables, banking groups have provisioned sensitive receivables meeting the criteria of IFRS 9 at an average of 14.2%. They have also covered healthy receivables that do not show any vulnerability index with preventive provisions representing 0.8% of their outstanding amounts.

2024-07-28 18:41:25

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