Fitch Ratings says Morocco's largest seven banks continued to show weak growth in 1H19, with sector deposits up by just 1% and lending up by 3%. In a new report, Fitch says deposit inflow slowdown is new while weakness in core lending trends was already visible in 2018.
Several banks have raised capital and further capital increases are planned but capitalisation is still a weakness, in Fitch's view.
Performance and asset quality metrics are broadly stable. Attijariwafa Bank (BB+/Stable) is still the sector's most profitable bank, reflecting lower impairments and better cost efficiency.
The report, 'Moroccan banks Dashboard; 1H19 Results', is available at www.fitchratings.com.
