Bank of Africa : H1 2022 Financial report

HALF YEAR FINANCIAL REPORT

30 JUNE 2022

BANK OF AFRICA

HALF YEAR FINANCIAL REPORT

30 June 2022

BANK OF AFRICA

140 Avenue Hassan II, Casablanca

BP 20 039 Casa Principale

Phone: [phone] / 96

Fax: [phone]

Capital: 2 056 066 480 dirhams

Telex: 21.931 - 24.004

Trade Register: casa 27.129

CCP: Rabat 1030

CNSS: 10.2808.5

Tax Identification Number: 01085112

Trading tax: 35502790

GOVERNANCE & CSR GROUP-FINANCIAL COMMUNICATION

Phone: [phone]

Fax: [phone]

E-mail: [e-mail]

BANK OF AFRICA WEBSITES: bankofafrica.ma | ir-bankofafrica.ma

INTERNATIONAL TRADE WEBSITE: www.bmcetrade.com

BMCE CAPITAL PORTAIL: www.bmcecapital.com

Sommaire

A. HALF YEAR FINANCIAL STATEMENTS AS OF 30 JUNE 2022............................................................................................................................................	3
B. BANK OF AFRICA INTRODUCTION ...............................................................................................................................................................................................	6
C. CONSOLIDATED STATEMENTS
AUDITORS' REPORT.................................................................................................................................................................................................................................	7
CONSOLIDATED STATEMENTS AND EXPLANATORY NOTES
I. CONSOLIDATED BALANCE SHEET, CONSOLIDATED INCOME STATEMENT, STATEMENT OF NET INCOME, STATEMENT OF
CHANGES IN SHAREHOLDERS' EQUITY, CASH FLOW STATEMENTS AND SUMMARY OF ACCOUNTING POLICIES...................................	8
1.1. Consolidated Balance Sheet..............................................................................................................................................................................................................................................	8
1.2. Consolidated Income Statement....................................................................................................................................................................................................................................	9
1.3. Statement of Changes in Shareholders' Equity................................................................................................................................................................................................	10
1.4. Statement of Net Income and Gains and Losses Recognised Directly in Shareholders' Equity......................................................................................	10
1.5. Cash Flow Statements at 30 June 2022.................................................................................................................................................................................................................	11
1.6. Summary of Accounting Policies Applied by the Group...............................................................................................................................................................................	12
II. NOTES TO THE INCOME STATEMENT AT 30 JUNE 2022....................................................................................................................................................	22
2.1. Net Interest Income..............................................................................................................................................................................................................................................................	22
2.2. Net Fee Income.......................................................................................................................................................................................................................................................................	22
2.3. Net Gains on Financial Instruments at Fair Value Through Profit or Loss .....................................................................................................................................	23
2.4. Net Gains on Available-For-SaleFinancial Assets........................................................................................................................................................................................	23
2.5. Net Income From Other Activities.............................................................................................................................................................................................................................	23
2.6. General Operating Expenses.........................................................................................................................................................................................................................................	23
2.7. Cost of Risk ...............................................................................................................................................................................................................................................................................	24
2.8. Net Gains on Other Assets............................................................................................................................................................................................................................................	24
2.9. Income Tax..................................................................................................................................................................................................................................................................................	25
III. SEGMENT INFORMATION..............................................................................................................................................................................................................	26
3.1. Earnings by business line..................................................................................................................................................................................................................................................	26
3.2. Assets and Liabilities by Business Activity..........................................................................................................................................................................................................	27
IV. NOTES TO THE BALANCE SHEET AT 30 JUNE 2022..........................................................................................................................................................	28
4.1. Cash, Amounts due From Central Banks, banks and the Post Office................................................................................................................................................	28
4.2. Assets and liabilities at fair value through profit or loss............................................................................................................................................................................	28
4.3. Financial assets at fair value through equity....................................................................................................................................................................................................	28
4.4. Securities at amortised cost.........................................................................................................................................................................................................................................	29
4.5. Interbank Transactions, Receivables and Amounts due From Credit Institutions....................................................................................................................	29
4.6. Loans, Receivables and Amounts due From Customers............................................................................................................................................................................	30
4.7. Debt Securities, Subordinated Debt and Special Guarantee Funds...................................................................................................................................................	32
4.8. Current and Deferred Tax................................................................................................................................................................................................................................................	32
4.9. Accrued Income and Expenses, Other Assets and Liabilities..................................................................................................................................................................	32
4.10. Investments in Companies Accounted for Under the Equity Method............................................................................................................................................	33
4.11. Property, Plant and Equipment and Intangible Assets Used in Operations and Investment Property.....................................................................	33
4.12. Goodwill.....................................................................................................................................................................................................................................................................................	34
4.13. Provisions for Risks and Charges..............................................................................................................................................................................................................................	34
V. FINANCING AND GUARANTEE COMMITMENTS...................................................................................................................................................................	35
5.1. Financing Commitments...................................................................................................................................................................................................................................................	35
5.2. Guarantee Commitments................................................................................................................................................................................................................................................	35
VI. SALARY AND EMPLOYEE BENEFITS.........................................................................................................................................................................................	35
6.1. Description of Calculation Method............................................................................................................................................................................................................................	35
6.2. Summary of Provisions and Description of Existing Schemes...............................................................................................................................................................	35
VII. ADDITIONAL INFORMATION......................................................................................................................................................................................................	36
7.1. Changes in Share Capital and Earnings Per Share..........................................................................................................................................................................................	36
7.2. Scope of Consolidation......................................................................................................................................................................................................................................................	36
D. PARENT COMPANY STATEMENTS...................................................................................................................................................................................................
AUDITORS' REPORT...............................................................................................................................................................................................................................	38
PARENT COMPANY STATEMENTS
VIII. NOTE CONCERNING RISKS ......................................................................................................................................................................................................	68
8.1. Risk Management Policy...................................................................................................................................................................................................................................................	68
8.2. Credit Risk..................................................................................................................................................................................................................................................................................	68
8.3. Rating Model...........................................................................................................................................................................................................................................................................	70
8.4. Exposure to Credit Risk.....................................................................................................................................................................................................................................................	71
8.5. Country Risk.............................................................................................................................................................................................................................................................................	73
8.6. Description of the Policy for Managing Liquidity and Interest Rate Risks ....................................................................................................................................	74
8.7. Market Risk................................................................................................................................................................................................................................................................................	75
8.8. Operational Risk....................................................................................................................................................................................................................................................................	77
8.9. ICAAP system .........................................................................................................................................................................................................................................................................	79
8.10 Internal Crisis Recovery Plan (PRCI)........................................................................................................................................................................................................................	79
8.11. Corporate and Social Responsibility.......................................................................................................................................................................................................................	79
8.12. Measurement of capital adequacy........................................................................................................................................................................................................................	80

2

ir-bankofafrica.ma

HALFYEAR

30 JUNE 2022

FINANCIAL AND BUSINESS MOMENTUM MAINTAINED IN FIRST HALF 2022

BANK OF AFRICA - BMCE Group's Board of Directors, chaired by Mr Othman BENJELLOUN, met Friday 23 September 2022 at the Bank's head office in Casablanca. It reviewed the business activity of the Bank and of the Group for first half 2022 and drew up the financial statements for the period in question.

The first half 2022 financial report is published on the website www.ir-bankofafrica.ma.

CONSOLIDATED BUSINESS ACTIVITY

MAD MILLIONS

NET INCOME ATTRIBUTABLE	NET BANKING INCOME
TO SHAREHOLDERS OF THE
PARENT COMPANY
	+6.2%		+6.3%
1 195	1 268	7 295	7 754
June 2021	June 2022	June 2021	June 2022

CUSTOMER LOANS

+2.7%

182 400	187 367
Dec 2021	June 2022

CUSTOMER DEPOSITS

	+3.1%
218 973	225 697
Dec 2021	June 2022

Net income attributable to shareholders of the parent company+6.2%to almost MAD 1.3 billionat 30 June 2022.

The Group's net banking income+6.3%to MAD 7.8 billionat 30 June 2022 versus MAD 7.3 billion at 30 June 2021.

Consolidatedloans,excluding resales, +2.7%to MAD 187.4 billionversus MAD 182.4 billion at 31 December 2021.

The Group's customer deposits+3.1%to MAD 226 billionversus MAD 219 billion at 31 December 2021.

PARENT BUSINESS ACTIVITY

MAD MILLIONS

NET INCOME	NET BANKING INCOME
	+4%		+1%
1 095	1 137	3 784	3 809
June 2021	June 2022	June 2021	June 2022

CUSTOMER LOANS

CUSTOMER DEPOSITS

	+4.7%		+1.7%
122 262	127 999	139 292	141 620
Dec 2021	June 2022	Dec 2021	June 2022

BANK OF AFRICA S.A.'s net income+4% year-on-yearto MAD 1.14 billionat 30 June 2022.

The Bank's net banking incomeup almost +1%to MAD 3.8 billionat 30 June 2022.

Strong growth of +4.7%in the Bank's customerloansto MAD 128 billionat 30 June 2022.

Customer deposits in Morocco+1.7%to almost MAD 142 billionat 30 June 2022 versus MAD 139 billion at 31 December 2021.

ir-bankofafrica.ma

POSITIVE REVENUE AND PROFIT GROWTH

Consolidated net banking income+6.3%to MAD 7.7 billionat 30 June 2022, driven by positive growth across business lines with fee income+12% and net interest income+9%.

Parent company revenue up almost+1% to MAD 3.8 billionthanks to a solid performance by the core business with fee income+7%and net interest income+4%despite a -7% decline in income from market operations.

Parent company general operating expenses broadly unchanged year-on-year at MAD 1.8 billion,resulting in a cost-to-income ratio of 46.8%at 30 June 2022 versus 47.1% at 30 June 2021, an improvement of 0.3 percentage points.

The rise in general operating expenses at the consolidatedlevelwas contained at+2%,resulting in a cost-to-income ratio of 51.1%at 30 June 2022, an improvement of 2.3 percentage points compared to 30 June 2021.

Consolidated gross operating income+12%to MAD 3.8 billion compared to 30 June 2021 and +4% to MAD 2 billion at the parent level.

Consolidated cost of risk+8%year-on-year to MAD 1,384 million in 2022 and annualised cost of risk+1.3%,broadly unchanged compared to 2021.

Net income attributable to shareholders of the parent company+6.2%

to MAD 1,268 million with net income at the parent level +4% to MAD 1,137 million.

BANK OF AFRICA Group's totalassets+5.5%to MAD 364 billion.

Shareholders' equity bolsteredin first half 2022 with MAD 1 billionof perpetual subordinated debt issued.

Strong business performance with consolidated customerloans,excluding resales,+2.7%to MAD 187.4 billion at 30 June 2022, driven by a 4.7% increase inlendingby the Bank in Morocco.

BANK OF AFRICA's share of the overallloanmarket rises to 12.91%at 30 June 2022.

Consolidated customer deposits+3%to MAD 226 billion at 30 June 2022 versus MAD 219 billion at 31 December 2021.

Customer deposits at the parentlevel+1.7%to MAD 141.6 billion at 30 June 2022 resulting in a 13.23% share of the market at 30 June 2022.

PRODUCT RANGE ENHANCED IN SUPPORT OF CUSTOMERS

Closer ties with the Moroccan diasporathrough a bespoke range of products and technical services, high value-addedsupport-based financing facilitiesand increased assistance in customers' country of residence,on round trips and during their stay in Morocco.

BANK OF AFRICA has further raised its profile in the Young Professionals segmentby launching a new and competitive range comprising an attractive package which includes mortgage and consumerloansto meet

the basic needs of Young Professionals.

'YASSIR' POSEF programmelaunchedin partnership with the Mohammed VIFoundation,enabling teachers to apply for an instant regulated and subsidisedloan.

New instant regulatedloanlaunchedin partnership with the Caisse Marocaine des Retraites (CMR)for BANK OF AFRICA's retired customers with repayments debited at source from a CMR pension.

Participation by BANK OF AFRICA in the 3rd Property Caravanorganised by the Mohammedia Foundation for Social Action by Magistrates and Legal Professionals.

Ongoing strategy to digitiseBANK OF AFRICA's products and services by launching the latestversion of the Agence Directe platform, offering an enhanced customer experience.

BANK OF AFRICA's commitment to payment systems inter-connection in Africaas a means of accelerating intra-Africantrade underlined at the 14th

US-Africa Business Summit 2022.

Two agreements signed by BANK OF AFRICAfor members of the

Foundationfor the Promotion of Social Action for the benefit of Civil Servants and Agents at the Ministry of Youth and Sportand members of the Association for Social Action at the National Agency for the Promotion of Employment and Skills (ANAPEC), enabling BANK OF AFRICA to extend its new civil service offer to all customers.

SANTE LEASE, a new finance productlaunchedby the Group's Maghrebail subsidiary,enabling doctors and dentists to establish or develop their medical practice.

Partnership agreement signed between BTIBank and WafaTakaful,

enabling the latter's products to be marketed across the BTI Bank network.

Fintechpayment servicelaunchedas a result of a partnership between Damane Cash,a BANK OF AFRICA subsidiary specialising in payment solutions and Paysend, a UK-basedfintech company.The venture is designed to simplify money transfers in Morocco and enable Moroccans with a bank account to carry out instant international transactions at discounted rates.

PROMISING PERFORMANCE BY THE GROUP'S SUBSIDIARIES

Strong performance by BOA Group in terms of revenue and profit growth

with net banking income +9% and net income attributable to shareholders of the parent company +38%, driven primarily by the core business, particularly net interest income and fee income.

Salafin's net production+7.1%to MAD 648 million at 30 June 2022, primarily due to a sales reorganisation, regained business momentum and increasingly competitive financing deals. Net income+9%à MAD 48 million at 30 June 2022.

Maghrebail's production+12.2%to MAD 1,460 million at 30 June 2022 due to strong business momentum in every region in which the subsidiary is present. As result, Maghrebail is ranked 3rd within the industry with a 23.65% share of the market at 30 June 2022. Net income+16.5%to MAD 56.7 million at 30 June 2022 versus MAD 48.6 million at 30 June 2021.

MarocFactoring'snet banking income+12.7%to MAD 16 million at 30 June 2022 with net income +26% to MAD 1.87 million.

Strong performance by the Group's Madrid-based subsidiarywith net income+43%compared to 30 June 2021 to EUR 6.8 million. This was due to strong business momentum by the trade finance business,as illustrated by a steep increase in foreign trade (+34%) and finex (+14%) transaction volumes at 30 June 2022.

GROUP'S ONGOING COMMITMENT TO A

SUSTAINABLE ECONOMY

Ligne Bleue, BANK OF AFRICA's exclusive agreement with the AFD and theEIBsigned in 2017, provides assistance and up to EUR 6 million of funding to manufacturing companies for projects such as water treatment plants.

BANK OF AFRICA continuing to market facilities launched in partnership with the EBRD such as the EUR 13 million GreenEconomyFinancingFacility(GEFFII)and theEUR10 million GreenValue Chain (GVC).

BANK OF AFRICA appointed as founder-member of the African BusinessLeadersCoalition (ABLC), established in May 2022 by the United Nations Global Compact,to advance sustainable growth, prosperity, and development in Africa.

Fundingprovided to repower the KoudiaElBaida wind farmin the Tangier- Tetouan region, Africa's oldest large-scalewind farm and Morocco's first independent renewable energy producer.At a cost of EUR 44 million, this investment is designed to double the wind farm's existing capacity to 100 MW.

BANK OF AFRICA's sustainable finance partnership with the WorldEnvironmentCenter (WEC), signed in March 2020, further bolstered with the visit of the United States Department of State to the Bank's head office in June. The partnership provides technical assistance to businesses,including access to the WEC'sVirtualTechForumscheduled for November.

BANK OF AFRICA joins the Board of Directors of ClusterEnR, a transition accelerator and non-profitorganisation, which brings together the entire renewable energy sector for the purpose of developing a competitive industrial sectorcapable of meeting national strategic goals and supporting green entrepreneurship.

Partnership agreement signed with theEBRD in social and green bonds and a round table organised on the theme of PositiveImpact Finance in Africa.The Bank's expertise in trade financeand its commitment to sustainable finance was again recognised in 2021.

BMCE BANK FOUNDATION REAFFIRMS ITS COMMITMENT TO SOCIAL ISSUES

Further tribute paid to DrLeïla MEZIAN BENJELLOUN, BMCE BankFoundation's Chair,by the Bouabate Fez Association, with the former being awarded the Fez Gate Trophy and the title of 'Woman of the Year'in the Social Action category.

16 pre-school classrooms built and equippedin state schools in partnership with the Ministry of National Education ahead of the start of the 2022-23academic year with 5 Medersat.Com network schools also renovated and refurbished.

6 new classrooms built and equipped by the BOAFoundationin the Yama

Tahoua schools district in Niger.

Success for 390 or 79% of Medersat.com network school pupilsfrom the 11th cohort sitting the high school diploma exam,including 244 girls (62.5% of female candidates), with 59% receiving a commendation, 28 of whom earning the highest distinction.

Participated in the Casablanca-Settat regional conferencesorganised by Casablanca's Hassan II University to discuss the ESRI PACTE 2030, a national plan for accelerating the transformation of the ecosystem of higher education, scientific research and innovation, which also enabled the Bank to share its experience and the Foundation'scommitment to the education sector and to environmental causes.

AWARDS AND DISTINCTIONS

ISO 37001 certification of BANK OF AFRICA's anti-bribery management system successfully renewedfollowing a comprehensive audit by EuroCompliance, an accredited certification firm.

BMCE Capital Gestion sees its services commitments andISO 9001:2015 certifications successfully renewedfollowing an external audit by Bureau

Veritas Morocco.

BMCE Capital Gestion successfully complying with the ISAE 3402TypeIIStandardpublished by the International Auditing and Assurance Standards Board (IAASB) following an audit by Mazars.

BMCE Capital Solutions' securities operation obtainsISAE 3402TypeIIcertification,attesting to the reliability and quality of BMCE Capital Solutions' internal control system.

BANK OF AFRICA named Most ActiveIssuing Bank in Morocco in 2021by the EBRD in recognition of the productive partnership forged between the two institutions in foreign trade financingand BANK OF AFRICA's ongoing efforts at offering its customers appropriate short-termforeign currency financing.

BANK OF AFRICA becomes the first Moroccan Bank to endorse Women'sEmpowerment Principles(WEP), a partnership initiative of the United Nations Global Compact and UN Women.

Gender Diversity Corporate Chartersigned to mark InternationalWomen's Day, underlining the Bank's commitment to joining the African network for diversity.

BANK OF AFRICA receives the award of Best Annual Sustainability Report within the financial services industryfor the 2nd consecutive year from the Casablanca Stock Exchange, with a score of 97%.

EurafricInformation, the Group's IT subsidiary, named 'TopEmployer' for the 3rd consecutive year by Top Employers Institute, a prestigious international organisation.

Eurafric Information officially approved as anElectronic Certification Service Providerby the General Directorate for Information Systems Security (DGSSI), which reports to the National Defence Administration.

Eurafric Information receives theEuropean Identityand Cloud (EIC) 2022 awardin the Identity Fabrics & IDaaS category from KuppingerCole Analysts AG, a consulting firm.

PROFILE

15,00032

EMPLOYEESCOUNTRIES

2,000	6.6
POINTS OF SALE	MILLION CUSTOMERS

BANK OF AFRICA is one of Africa's main pan-African financial groups. With an extensive portfolio of brands and subsidiaries, BANK OF AFRICA is a universal banking group with a variety of business lines, including commercial banking, investment banking as well as specialised financial services such as leasing, factoring, consumer credit and participatory banking.

NET INCOME ATTRIBUTABLE TO

SHAREHOLDERS OF THE PARENT COMPANY

AT 30 JUNE 2022 BY GEOGRAPHICAL REGION

MOROCCO • 54%

SUB-SAHARAN AFRICA • 38%

EUROPE • 8%

RATINGS

BA1,	BB,
STABLE	STABLE
OUTLOOK	OUTLOOK

Non-financial rating

A+

FINANCIAL COMMUNICATION website: ir-bankofafrica.ma - Tel: [phone]