29th Mar 2006 07:00
Banque Marocaine Du Commerce Exteri28 March 2006 BMCE BANK FINANCIAL COMMUNICATION 2005 CONSOLIDATED RESULTS The Board of Directors of BMCE Bank, chaired by Mr. Othman BENJELLOUN, was heldon Friday, March 17th, 2005, in Marrakech. It examined the Bank's activitiesduring the fiscal year 2005 as well as the related financial statements. The Board of Directors will propose to the General Assembly to pay itsshareholders a dividend of 20 dirhams per share. STRONG RISE IN BMCE BANK'S CONSOLIDATED RESULTS - +28.4% increase in consolidated net earnings of the Group's equity, on acomparable basis*, reaching MAD 734.5 million, thanks notably to the significantcontribution of the domestic activity representing three quarters of theconsolidated net earnings. With +11% rise, total consolidated net earningsreached MAD 777 million. - +11.3% sustained growth of the net banking income, to MAD 3.1 billion,primarily due to the progression of the interest margin (+12%) and the margin onfees (+25%). - More than 500 recruitments, associated to the network extension programme(50 new branches and 5 business centres) and to the structuring projects relatedto information systems and organisation, contributing to the consolidatedgeneral operating expenses rise of +23%. - Improved coverage of the NPL portfolio, with a +46% increase of theallowances net of provision write-backs to MAD 352 million. - Development of consolidated assets with a 9.3% growth to more than MAD75.6 billion, thanks to sustained rise of customer deposits (+7%) and customerloans (+17%). - Refocusing of equity portfolio on strategic activities, allowing a 30%decrease of the equity portfolio to MAD 2 billion. - Reinforcement of shareholders equity by 10% to MAD 6.5 billion, thanksparticularly to the launching of the second half of the subordinated bond of MAD500 billion in 2005. - Solid stock performance as shown by the out-performance of BMCE share in2005 (+43%) compared to the stock exchange indices (MASI +22.5%, MADEX+23.8%)and banking sector index (+32%), reaching a historically high level of MAD 1,002on February 20, 2006. BMCE BANK GROUP ENGAGED IN GROWTH DYNAMICS Outstanding performances achieved thanks to the subsidiaries contribution andthe strong synergies between the Group Business Lines. BMCE BANK DOMESTIC ACTIVITY, FIRST CONTRIBUTOR TO THE CONSOLIDATED RESULTS Individual and Professional market: Significant commercial performances - Growth of mortgage loans (58%), consumer lending (+35.4%), and number ofaccounts managed (+15%) - Sustained development of the electronic payment and Bancassuranceactivities with +12.5% increase of the electronic cards and +39.8% rise of theBancassurance contracts. - Increase of the Moroccan expatriates market share by 1pt% with a +23%deposits rise. Stronger presence in the Corporate and SME market - Consolidated positioning on financing large scale projects related totourism, industry and infrastructure launched in Morocco in 2005. - +24.1% rise in loans to large companies. - Launch with the European Investment Bank -EIB- a EUR 30 million financingline targeting middle term financing of Moroccan. INCREASING CONTRIBUTION OF THE SPECIALISED FINANCIAL SERVICES - Rise of Salafin contribution to the consolidated result, performanceinduced by a credit increase of +23% to MAD 1.7 billion - +14% increase of Maghrebail net book outstandings to DH 3.1 billion and+30% growth of its contribution to the group results. - Significant evolution of Maroc Factoring activity with a 10% increase ofthe treated credits volume and a +36% in the contribution to the consolidatedresult. A NEW BOOST FOR INTERNATIONAL ACTIVITIES - 2005 was marked by the reconfiguration of BMCE Bank's foreign networkwithin a banking subsidiary to be settle in London. ASSET MANAGEMENT AND INVESTMENT BANKING ACTIVITIES CREATING VALUE - Reinforcement of BMCE Capital positioning in market and private debtequity activities, assets management, brokerage and custody. - BMCE Capital Gestion obtained the best rating attributed in Africa to anasset management company by the Fitch Rating. - Strengthening of the leading role of BMCE Capital Finance - the recentlycreated corporate finance and investment activities subsidiary - in Moroccothanks to its recognized know-how. - Launching in Morocco of the first real estate fund with a target size ofMAD 800 million by Actif Invest. - Reinforcement of BMCE Capital Africa renown in Africa thanks to severalstrategic operations conducted in West Africa 2006 PROSPECTS - Favourable prospects for growth thanks to the expected outcomes from (i)the further development of individual's segment, (ii) the enhancement of theproducts and services range offered to SME, and (iii) the leadershipconsolidation of Corporate segment and the investment Bank activities. - Growth also expected from international activities, BMCE Bank, targetingto be a key player in the Maghreb and the sub-Saharan Africa through itsoverseas positioning in London, Tunis and Algiers. BMCE BANK, A SOCIALLY RESPONSIBLE BANK - Further implementation of the Medersat.com Program by BMCE BankFoundation, with, to date, 56 rural schools built and equipped, 7800 pupilsattending schools, 5000 adults enrolled in literacy classes, and 20 developmentgenerating revenues projects implemented. - Embedded corporate culture based on human capital motivation with thelaunching, in 2005, of a new public offer reserved to the BMCE Bank Groupemployees of nearly 4% of the bank share capital. BMCE BANK AWARDED - BMCE Bank ranked first company listed in the Casablanca stock exchangefor the quality of its financial communication by "The Moroccan Association ofthe Financial Analyst" - "Best Bank in Morocco" title awarded for the 4th time to BMCE Bank by theBanker magazine of the Financial Times Group. - '"One Year STP Excellence Award" prize given by Deutsche Bank to BMCEBank rewarding the quality of foreign fund transfer processing. List of consolidation as of December 2005 Full Consolidation % of controlMaroc Factoring 95.0%Salafin 97.1%Maghrebail 35.0%BMCE Internacional Madrid 80.0%BMCE Capital 100.0%BMCE Capital Bourse 100.0%BMCE Capital Gestion 100.0%La Congolaise de Banque 25.0%Equity Method Casablanca Finance Markets 33.3%Acmar 20.0%Banque de Developpement du Mali 20.7% List of consolidation excluded RMI after its disposal Introduction to the list of consolidation : "La Congolaise de Banque", 25% ofthe shares being held in 2005 CONSOLIDATED BALANCE SHEET In thousand MAD ASSETS 12/31/2005 12/31/2004 CASH, CENTRAL BANKS, TREASURY, GIRO ACCOUNTS 7 090 275 5 404 551 LOANS TO CREDIT INSTITUTIONS AND EQUIVALENT 12 735 302 11 056 390 . Demand 3 249 114 1 826 885 . Time 9 486 188 9 229 505 LOANS AND ADVANCES TO CUSTOMERS 31 296 160 26 814 652 . Cash and consumer loans 16 540 796 14 855 740 . Equipment loans 6 452 259 5 885 428 . Mortgage loans 5 102 795 3 231 303 . Other loans 3 200 310 2 842 181 LEASING AND RENT OPERATIONS 5 108 321 4 464 533 ADVANCES ACQUIRED BY FACTORING 679 767 644 624 TRANSACTION AND MARKETABLE SECURITIES 12 699 680 14 283 774 . Treasury bonds and equivalent securities 6 932 730 8 542 115 . Other debt securities 2 954 398 1 915 361 . Title deeds 2 812 552 3 826 298 OTHER ASSETS 2 169 213 1 518 135 INVESTMENT SECURITIES 27 509 688 . Treasury bonds and equivalent securities 27 27 . Other debt securities - 509 661 EQUITY INVESTMENT OF NON CONSOLIDATED AFFILIATES 2 043 787 2 925 289 SECURITIES CONSOLIDATED BY THE EQUITY METHOD 131 795 160 193 . Financial companies 131 795 130 277 . Other companies - 29 916 SUBORDINATED LOANS - FIXED ASSETS LEASED AND RENTED - INTANGIBLE FIXED ASSETS 93 697 79 811 TANGIBLE FIXED ASSETS 1 528 350 1 309 329 GOODWILL ON ACQUISITION 24 490 25 346 TOTAL ASSETS 75 600 864 69 196 315 In thousand MAD LIABILITIES 12/31/2005 12/31/2004 CENTRAL BANKS, TREASURY, GIRO ACCOUNTS LIABILITIES TO CREDIT INSTITUTIONS AND EQUIVALENT 5 903 568 4 737 251 . Demand 1 337 780 406 870 . Time 4 565 788 4 330 381 CUSTOMER DEPOSITS 57 757 246 53 925 237 . Demand deposits 28 257 181 23 392 267 . Savings deposits 9 792 974 8 548 857 . Time deposits 15 196 824 16 699 305 . Other deposits 4 510 267 5 284 808 DEBT SECURITIES ISSUED 765 647 1 019 551 . Negotiable debt securities 506 217 759 325 . Bond loans 259 430 260 226 . Other debt securities issued OTHER LIABILITIES 3 183 172 2 545 503 GOODWILL ON ACQUISITION CONTINGENT LIABILITIES 99 171 227 152 REGULATED PROVISIONS - - SUBSIDIES, ASSIGNED PUBLIC FUNDS AND SPECIAL GUARANTEE FUNDS 100 7 397 SUBORDINATED LOANS 1 001 358 500 000 PREMIUMS RELATED TO CAPITAL 3 943 593 3 559 034 CAPITAL 1 587 514 1 587 514 SHAREHOLDERS, UNPAID UP CAPITAL CONSOLIDATED RESERVES, REVALUATION RESERVE, UNREALISED EXCHANGE 582 414 385 579GAINS/LOSSES DIFFERENTIALS AND DIFFERENCE IN EQUITY METHOD . Group share 247 699 106 505 . Minority interests 334 715 279 074 NET INCOME FOR THE YEAR 777 081 702 097 . Group share 736 014 676 116 . Minority interests 41 067 25 981 TOTAL LIABILITIES 75 600 864 69 196 315 CONSOLIDATED OFF-BALANCE SHEET In thousand MAD OFF-BALANCE 12/31/2005 12/31/2004 GIVEN COMMITMENTS 16 379 110 12 139 295 Financing commitments given on behalf of credit institutions and 340 518 220 128equivalent Financing commitments given on behalf of customers 8 069 809 4 602 044 Guarantee commitments given to credit institutions and equivalent 2 730 804 1 967 351 Guarantee commitments given to customers 5 237 979 5 349 772 Securities repos purchased - - Other securities to be delivered - - RECEIVED COMMITMENTS 2 012 144 1 824 300 Financing commitments received from credit institutions and 172 144 345 674equivalent Guarantee commitments received from credit institutions and 1 381 872 1 132 603equivalent Guarantee commitments received from the State and various 458 128 346 023guarantee bodies Securities repos sold - - Other securities to be received - - CONSOLIDATED INCOME STATEMENT In thousand MAD 12/31/2005 12/31/2004 BANK OPERATING REVENUES 4 559 326 4 440 667 Interests and assimilated revenues on transactions with credit 268 367 168 305institutions Interests and assimilated revenues on transactions with 2 405 892 2 124 735customers Interests and assimilated revenues on debt securities 445 534 505 957 Revenues on title deeds 94 327 80 383 Revenues from leased and rented fixed assets - - Fees on provided services 523 021 434 857 Other banking revenues 822 185 1 126 430 BANK OPERATING EXPENSES 1 457 805 1 660 082 Interests and assimilated expenses on transactions with credit 244 650 155 564institutions Interests and assimilated expenses on transactions with 806 917 789 490customers Interests and assimilated expenses on debt securities issued 59 227 64 364 Expenses on leased and rented fixed assets - - Other banking expenses 347 011 650 664 NET BANKING INCOME 3 101 521 2 780 585 Non-banking operating revenues 265 381 69 191 Non-banking operating expenses 42 104 32 109 GENERAL OPERATING EXPENSES 1 842 173 1 489 728Staff expenses 939 087 820 086 Tax expenses 37 642 38 502 External expenses 694 783 488 288Other general operating expenses 8 037 5 641 Allowances for depreciation and provisions for intangible and 162 624 137 211tangible fixed assets ALLOWANCES FOR AMORTIZATION ON GOODWILL ACQUISITION 6 641 6 009 GOODWILL ACQUISITION WRITE BACKS ALLOWANCES FOR PROVISIONS AND LOAN LOSSES 860 794 745 145 Allowances for non performing loans and commitments 519 016 413 065 Loan losses 228 226 175 167Other allowances for provisions 113 552 156 913 PROVISION WRITE-BACKS AND RECOVERY ON AMORTIZED DEBTS 532 786 405 748 Provision write-backs on non performing loans and commitments 343 500 319 049 Recovery of amortised debts 37 418 34 604 Other provision write-backs 151 868 52 095 CURRENT INCOME 1 147 976 982 533 Non-current revenues 245 6 728 Non-current expenses 55 10 379 PRE-TAX EARNINGS 1 148 166 978 882 Tax 383 758 295 116 NET EARNINGS OF COMPANIES ACCOUNTED FOR BY FULL CONSOLIDATION 764 408 683 766Share in net income of companies accounted for by equity method 12 673 18 331 . Financial companies 12 673 18 331 . Other companies - - NET EARNINGS FOR THE YEAR 777 081 702 097Group's equity 736 014 676 116Minority interests 41 067 25 981 CONSOLIDATED MANAGEMENT BALANCES STATEMENT In thousand MADI- EARNINGS FORMATION TABLE 12/31/2005 12/31/2004 + Interests and equivalent revenues 3 118 056 2 799 725 - Interests and equivalent expenses 1 112 492 1 015 487 INTEREST MARGIN 2 005 564 1 784 238 + Revenues from leased and rented fixed assets - Expenses on leased and rented fixed assets PROFIT FROM LEASING AND RENTING OPERATIONS + Fees received 641 032 517 327 - Fees paid 65 999 56 527 MARGIN ON FEES 575 033 460 800 + Income from operations on transaction securities - - + Income from transactions on marketable securities 304 863 386 727 + Income from exchange transactions 95 698 132 073 + Income from derivatives transactions 28 165 - 23 064 INCOME FROM MARKET TRANSACTIONS 428 726 495 736 + Other miscellaneous banking revenues 158 017 122 448 - Other miscellaneous banking expenses 65 819 82 637 NET BANKING INCOME 3 101 521 2 780 585 + Net income from equity investments 246 282 - 113 001 + Other non-banking operating revenues 34 414 66 948 - Other non-banking operating expenses - 33 569 - 15 043 - General operating expenses 1 842 173 1 489 728 GROSS OPERATING INCOME 1 506 475 1 229 761 + Allowances for non performing loans and commitments (net of - 370 439 - 234 572 write-backs) + Other allowances net of provision write-backs 18 581 - 6 647 + Allowances net of write backs on goodwill acquisition amortization - 6 641 - 6 009 CURRENT INCOME 1 147 976 982 533 NON-CURRENT INCOME 190 - 3 651 - Tax 383 758 295 116 NET EARNINGS OF COMPANIES ACCOUNTED FOR BY FULL CONSOLIDATION 764 408 683 766Share in net income of companies accounted for by equity method 12 673 18 331 . Financial companies 12 673 18 331 . Other companies - - NET EARNINGS FOR THE YEAR 777 081 702 097Group's equity 736 014 676 116Minority interests 41 067 25 982 II- CASH-FLOW + NET EARNINGS FOR THE YEAR 777 081 702 097 + Allowances for depreciation and provisions for intangible and 143 830 134 729 tangible fixed assets + Allowances for provisions for equity investments depreciation 29 388 98 193 + Allowances for provisions for general risks - 4 000 + Allowances for regulated provisions 849 10 832 + Non-current allowances 400 - Provision write-backs 55 862 12 024 - Capital gains on disposals of intangible and tangible fixed assets 1 535 41 886 + Capital losses on disposals of intangible and tangible fixed 1 386 4 268 assets - Capital gains on disposals of equity investments 230 967 2 243 + Capital losses on disposals of equity investments 8 535 117 918 - Write-backs of investment subsidies received + FINANCING CAPACITY 673 105 1 011 884 - Dividends distributed 305 457 261 664 + CASH-FLOW 367 648 750 220 ERNST & YOUNG KPMG ERNST & YOUNG SARL37, Bd Abdellatif Ben Kaddour 6, Rue Toudgha20050 Casablanca Agdal - Rabat BANQUE MAROCAINE DU COMMERCE EXTERIEUR-BANK BMCE-BANK REPORT OF THE STATUTORY AUDITORS ON THE INTERIM CONSOLIDATED BALANCE SHEET AND INCOME STATEMENT FROM JANUARY 1st TO DECEMBER 31, 2005 (Free translation from the French original) We have conduced a limited review of the interim consolidated balance sheet,off-balance sheet and income statement and of the consolidated managementbalances statement Banque Marocaine du Commerce Exterieur "BMCE-BANK" for theyear running from January 1st to December 31, 2005. We have conducted our limited review in accordance with the professionalstandards and given the prevailing legal and statutory conditions. On the basis of our limited review, we did not notice any fact likely to affectsignificantly the sincerity of the information contained in these documents. Casablanca, March 17, 2006 Statutory AuditorsERNST & YOUNG KPMG Ali BENNANI Jamal Saad El IdrissiPartner Partner BMCE BANK FINANCIAL COMMUNICATION 2005 AGGREGATED RESULTS Balance Sheet Statement In thousand MADASSETS 12/31/2005 12/31/2004 CASH, CENTRAL BANKS, TREASURY, GIRO ACCOUNTS 6 981 390 5 391 337 LOANS TO CREDIT INSTITUTIONS AND EQUIVALENT 12 325 267 11 606 497. Demand 2 502 298 1 978 509. Time 9 822 969 9 627 988LOANS AND ADVANCES TO CUSTOMERS 30 271 440 26 426 804. Cash and consumer loans 15 799 207 14 499 573. Equipment loans 6 329 948 5 885 428. Mortgage loans 5 085 405 3 224 957. Other loans 3 056 880 2 816 846ADVANCES ACQUIRED BY FACTORING TRANSACTION AND MARKETABLE SECURITIES 13 293 484 14 530 881. Treasury bonds and equivalent securities 6 932 730 8 542 115. Other debt securities 3 640 674 2 237 044. Title deeds 2 720 080 3 751 722OTHER ASSETS 1 365 975 1 268 976 INVESTMENT SECURITIES - 509 661. Treasury bonds and equivalent securities. Other debt securities - 509 661EQUITY INVESTMENT AND EQUIVALENT USES 2 656 789 3 508 954 SUBORDINATED LOANS FIXED ASSETS LEASED AND RENTED INTANGIBLE FIXED ASSETS 77 266 70 808 TANGIBLE FIXED ASSETS 1 276 253 1 211 813 TOTAL ASSETS 68 247 864 64 525 731 LIABILITIES 12/31/2005 12/31/2004 CENTRAL BANKS, TREASURY, GIRO ACCOUNTS LIABILITIES TO CREDIT INSTITUTIONS AND EQUIVALENT 3 821 794 3 418 937. Demand 885 195 619 217. Time 2 936 599 2 799 720CUSTOMER DEPOSITS 55 541 042 53 263 833. Demand deposits 27 063 516 23 321 974. Savings deposits 9 673 508 8 540 900. Time deposits 14 965 694 16 674 861. Other deposits 3 838 324 4 726 098DEBT SECURITIES ISSUED. Negotiable debt securities. Bond loans. Other debt securities issuedOTHER LIABILITIES 1 594 528 1 420 012 CONTINGENT LIABILITIES 68 974 216 009 REGULATED PROVISIONS 54 682 54 682 SUBSIDIES, ASSIGNED PUBLIC FUNDS AND SPECIAL GUARANTEE FUNDS SUBORDINATED DEBTS 1 001 358 500 000 REVALUATION RESERVE RESERVES AND PREMIUMS RELATED TO CAPITAL 3 940 043 3 536 934 CAPITAL 1 587 514 1 587 514 SHAREHOLDERS. UNPAID-UP CAPITAL RETAINED EARNINGS (+/-) 3 550 22 100 NET EARNING BEING APPROPRIATED (+/-) - - NET EARNING FOR THE YEAR (+/-) 634 379 505 710 TOTAL LIABILITIES 68 247 864 64 525 731 Off-Balance Sheet Statement In thousand MADOFF-BALANCE SHEET 12/31/2005 12/31/2004 GIVEN COMMITMENTS 14 516 476 11 053 099Financing commitments on behalf of credit institutions and 415 246 584 296equivalentFinancing commitments on behalf of customers 7 361 389 4 179 956Guarantee commitments given to credit institutions and equivalent 2 488 868 1 953 234Guarantee commitments given to customers 4 250 973 4 335 613Securities repos purchasedOther securities to be deliveredRECEIVED COMMITMENTS 617 829 465 976Financing commitments received from credit institutions andequivalentGuarantee commitments received from credit institutions and 585 364 432 809equivalentGuarantee commitments received from the State and various guarantee 32 465 33 167bodiesSecurities repos soldOther securities to be received Income Statement In thousand MAD 12/31/2005 12/31/2004BANK OPERATING REVENUES 3 881 272 3 970 165Interests and assimilated revenues on transactions with credit 297 100 206 223institutionsInterests and assimilated revenues on transactions with customers 1 863 899 1 683 333Interests and assimilated revenues on debt securities 445 532 505 957Revenues on title deeds 130 208 110 203Revenues from leased and rented fixed assetsFees on provided services 412 215 350 494Other banking revenues 732 318 1 113 955BANK OPERATING EXPENSES 1 313 874 1 528 644Interests and assimilated expenses on transactions with credit 153 856 80 805institutionsInterests and assimilated expenses on transactions with customers 791 284 786 032Interests and assimilated expenses on debt securities issued - -Expenses on leased and rented fixed assetsOther banking expenses 368 734 661 807NET BANKING INCOME 2 567 398 2 441 521Non-banking operating revenues 262 163 69 671Non-banking operating expenses 35 087 132 445GENERAL OPERATING EXPENSES 1 534 603 1 316 441Staff expenses 768 220 699 931Tax expenses 28 971 35 136External expenses 598 386 454 438Other general operating expenses 6 589 4 987Allowances for depreciation and provisions for intangible and tangible 132 437 121 949fixed assetsALLOWANCES FOR PROVISIONS AND LOAN LOSSES 800 845 673 926Allowances for non performing loans and commitments 480 143 359 080Loan losses 228 104 175 167Other allowances for provisions 92 598 139 679PROVISION WRITE-BACKS AND RECOVERY ON AMORTISED DEBTS 437 598 352 844Provision write-backs on non performing loans and commitments 330 963 308 044Recovery of amortised debts 37 418 34 561Other provision write-backs 69 217 10 239CURRENT INCOME 896 624 741 224Non-current revenuesNon-current expensesPRE-TAX EARNING 896 624 741 224Corporate tax 262 245 235 514NET EARNING FOR THE YEAR 634 379 505 710 Management Balances Statement In thousand MADI- EARNING FORMATION TABLE 12/31/2005 12/31/2004+ Interests and assimilated revenues 2 604 805 2 402 098- Interests and assimilated expenses 947 104 872 907Interest Margin 1 657 701 1 529 191+ Revenues from leased and rented fixed assets- Expenses on leased and rented fixed assetsProfit from leasing and renting operations+ Fees received 506 626 427 118- Fees paid 64 623 55 445Margin on fees 442 003 371 673+ Income from operations on transaction securities - -+ Income from transactions on marketable securities 302 236 383 097+ Income from exchange transactions 92 466 125 584+ Income from derivatives transactions 28 165 - 23 064Income from market transactions 422 867 485 617+ Other miscellaneous banking revenues 134 564 151 363- Other miscellaneous banking expenses 89 737 96 323NET BANKING INCOME 2 567 398 2 441 521+ Net income from equity investments 246 282 - 213 852+ Other non-banking operating revenues 31 196 67 428- Other non-banking operating expenses 26 552 14 527- General operating expenses 1 534 603 1 316 441GROSS OPERATING EARNING 1 283 721 964 129+ Allowances for non performing loans and commitments (net of write-backs) - 339 877 - 191 635+ Other allowances net of provision write-backs - 47 220 - 31 270CURRENT INCOME 896 624 741 224 NON-CURRENT INCOME- Corporate tax 262 245 235 514NET EARNING FOR THE YEAR 634 379 505 710 II- CASH-FLOW + NET EARNING FOR THE YEAR 634 379 505 710 + Allowances for depreciation and provisions for intangible and tangible 132 437 121 949 fixed assets+ Allowances for provisions for equity investments depreciation 29 388 98 178+ Allowances for provisions for general risks+ Allowances for regulated provisions+ Non-current allowances- Provisions write-backs 53 238 -- Capital gains on disposals of intangible and tangible fixed assets 1 475 41 886+ Capital losses on disposals of intangible and tangible fixed assets 1 377 4 268- Capital gains on disposals of equity investments 230 967 2 243+ Capital losses on disposals of equity investments 8 535 117 918- Write-backs of investment subsidies received+ FINANCING CAPACITY 520 436 803 894- Dividends distributed 250 474 216 040+ CASH-FLOW 250 474 216 040 Provisions In thousand MAD PROVISIONS Amount Allowances Write-backs Other Amount 12/31/04 Changes 12/31/05PROVISIONS, DEDUCTED FROM ASSETS, ON: 2 058 462 514 564 148 396 -322 410 2 102 220Loans to credit institutions and -equivalentLoans and advances to customers 1 804 264 454 183 88 837 -216 873 1 952 737Doubtful interest 31 451 6 321 25 130Marketable securities 1 567 25 470 - 27 037Equity investments and equivalent assets 221 180 34 911 53 238 -105 537 97 316Leased and rented fixed assetsOther assetsPROVISIONS RECORDED UNDER LIABILITIES 270 691 21 639 165 983 -2 691 123 656Provisions for risks of fulfilment 13 025 3 962 12 603 29 590commitmentsProvisions for exchange risks 10 366 15 983 32 707 27 090Provisions for general risks 176 415 - 150 000 -21 432 4 983Provisions for retirement pensions andsimilar obligationsProvisions for other risks and expenses 26 569 7 311 - -26 569 7 311Regulated provisions 54 682 54 682TOTAL 2 329 153 536 203 314 379 -325 101 2 225 876 FY 2004 FY 2005Recovery of amortised debts 34 561 37 418 Non Performing Loans & Provisions In thousand MAD 12/31/2004 12/31/05 Claims Provisions and reserved Claims Provisions and reserved interest interestSubstandard loans 4 798 - 3 719 -Doubtful loans 60 413 48 079 12 525 8 264Loss loans 2 802 198 1 787 634 2 931 866 1 970 108Total 2 867 409 1 835 713 2 948 110 1 978 372 Turnover In thousands MADSecond Semester 2005 1 823 386First Semester 2005 2 064 204Second Semester 2004 1 901 614 ERNST & YOUNG KPMG ERNST & YOUNG SARL37, Bd Abdellatif Ben Kaddour 6, Rue Toudgha20050 Casablanca Agdal - Rabat BANQUE MAROCAINE DU COMMERCE EXTERIEUR-BANK BMCE-BANK REPORT OF THE STATUTORY AUDITORS ON THE INTERIM BALANCE SHEET AND INCOME STATEMENT FROM JANUARY 1st TO DECEMBER 31, 2006 (Free translation from the French original) In compliance with the requirements of article 17 of the dahir related to thelaw ndegrees 1-93-212 of September 21st, 1993, as modified and completed, wehave conducted a limited review of the interim balance sheet and incomestatement of Banque Marocaine du Commerce Exterieur "BMCE-BANK" for the yearrunning from January 1st to December 31, 2005. We have conducted our limited review in accordance with the professionalstandards and given the prevailing legal and statutory conditions. On the basis of our limited review, we did not identify any fact likely toaffect, significantly, the sincerity of the information contained in thesedocuments. Casablanca, March 17, 2006 Statutory Auditors ERNST & YOUNG KPMG Ali BENNANI Jamal Saad El IdrissiPartner Partner This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
BMED.L