Credit Immobilier et Hôtelier Societe Anonyme : ANNUAL REPORT 2020

ANNUAL REPORT

A year of solidarity

His Majesty King Mohammed VI

CIH BANK

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A word from the Chairman

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CIH BANK in brief

Shareholding

Business lines and subsidiaries

12-13

1. Timeline
   of 100 years

.1 Strategy

and governance

1. Environment

1. Strategy

1. Governance

.2Performance and creating shared value

42 A bank that creates sustainable value

1. 2020 Highlights
2. Commercial performance key figures
3. Facilitating banking inclusion
4. Facilitating access to credit
5. Fair pricing and free basic services

1. Customer service - Digitalization

1. Innovation
2. Human capital

1. Actions in favor of the community
2. Helping to limit the effects of climate change

.3Financial

Report

60 Performance of subsidiaries and equity interests

62 Statutory Auditors' Report

1. Corporate accounts

1. Resolutions

	73	Audit report on	BANK
		the consolidated	CIH
		financial statements
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	77	Consolidated financial
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Appendices

1. Social indicators

1. GRI Index

1. AMMC Index

94 New openings

and branch network

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A word from the Chairman

Chairman of CIH BANK

M. Lotfi SEKKAT

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2020 has been a special year in many ways, most obviously because of the Covid-19 pandemic that has affected the entire world, causing major health, human and economic disruption.

Like any company, CIH BANK had the duty to protect its employees and customers by deploying, in record time, all the necessary means to limit the spread of the virus. In this regard, I hail the exemplary mobilization of our employees who were able to adapt to this exceptional context in order to continue to serve our clients despite the health constraints and restrictions.

At the same time, our bank had to ensure the continuity of its activities to enable its customers, both individuals and companies, to carry out their operations and transactions under the best possible conditions despite the state of health emergency.

Finally, CIH BANK also had a national solidarity duty, not only through its contribution to the Covid-19 Special Fund, but also by accompanying the provision of government aid to vulnerable populations and businesses. Our bank has thus made its network of branches and ATMs available for the distribution of this aid. It has also granted exceptional deferrals of loan payments to its customers affected by the crisis, at no additional cost. In addition to schemes such as Damane Relance and Damane Oxygène, it has opened new lines of credit to enable companies to ensure the recovery of their activities.

This commitment to solidarity is also reflected in our social approach: CIH BANK has renewed its support to numerous associations, which are in great demand during this period of crisis.

Despite this difficult context, CIH BANK posted a good commercial performance in 2020: it recorded a 21% increase in outstanding deposits and a 19.4% increase in outstanding loans compared to 2019.

In addition, 423,455 new accounts were opened during the year. However, financial results were impacted by the increased risk associated with the pandemic and the various expenses it generated.

In addition to managing the health crisis, our group was able to pursue its most structuring projects, such as the renewal of its quadruple ISO 9001 version 2015 certification for its electronic banking, real estate lending, bancassurance and corporate financing activities.

CIH BANK also continued to develop its mobile banking offer in a context where the entire banking sector experienced a strong acceleration of its digitalization. Fortunately, CIH BANK had already deployed all the tools and processes to respond effectively to client demand. Our CIH ONLINE and CIH MOBILE platforms involved a record 104.2 million connections.

2020 will be remembered as the year of the pandemic. It was also the year of CIH BANK's centennial. 100 years during which our bank has actively accompanied the socio-economic development of Morocco.

At the service of its clients and listening to the world around it, CIH BANK has continued to evolve and reinvent itself over the years, pursuing its transformation into a universal bank. Agility, innovation, communication and collective ambition are the foundations that allowed us to remain at the heart of the Kingdom's economic and social policies.

Indeed, by the early 1980s, CIH became one of the most important financial institutions in achieving the goals of the Moroccan Government's economic and social policy.

Since the 1960s, our bank has played the role of a real driving force for the hotel and housing sector and has also multiplied its actions to facilitate Moroccan citizens' access to real estate credit.

As part of the 1965-1967 plan, which declared the tourism sector as a national priority just second to agriculture, Caisse de Prêts Immobiliers du Maroc (CPIM) (former name of CIH) intervened in the construction of hotel infrastructures in landlocked regions and thus contributed to their social and human development.

Between 1973 and 1977, CPIM financed 20,000 housing units representing a total volume of loans of MAD 862 million. CIH BANK has also actively participated in collective real estate programs launched as part of the national policy of slum clearance.

After real estate and tourism, the bank has targeted new markets. Upon his arrival at the head of the bank in 2009, Chairman Ahmed Rahhou initiated the 2010-2014 strategic plan to transform CIH BANK into a universal bank. CIH BANK has thus developed new business lines, such as market activities and bancassurance.

In recent years, our bank has often positioned itself as a forerunner by launching, for example, free basic banking services for young people, women, civil servants and all individuals opening their accounts online.

Today, CIH BANK is a forward-looking bank that has successfully embarked on digital banking by offering clients innovative and accessible online services.

CIH BANK

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CIH BANK

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CIH BANK in brief

Key figures

Commercial network	307	6	4
	branches	new branches	mobile branches
	and 9 regional	in 2020
	directorates
Social base
Total balance sheet:	2020	2019	Up by
	MAD	MAD	19,2 % compared
	78,6 billion	65,8 billion	to December 2019
Gross operating income	2020	2019	Up by
	MAD	MAD	7,6 % compared
	1 315,4 million	1 222,0 million	to December 2019
Net income	2020	2019	Down by
	MAD	MAD	45 % compared
	249,3 million	451,4 million	to December 2019
Shareholders' equity	2020	2019
	MAD	MAD
	5,0 billion	5,2 billion
Human capital	2 083	40 % women
	employees at the end
	of 2020

	1927	2044		2083
2500
2000	49	48		86
			637
1500	734	702
	137	235		259
1000
500	1007	1059		1101
0	2018	2019		2020
≤ 10 years		11 - 20 years	21 - 30 years	≥ 30 years

Commercial performance	1,4 million	92 % customer	+69 % of individual
	active customers	satisfaction rate	and self-employed
			customers between
			2018 and 2020
	423 455	1,5 million	104,2 millions
	new accounts	CIH ONLINE and	connections
	opened in 2020	CIH MOBILE accounts	to CIH ONLINE
			and CIH MOBILE
CSR	+51 % increase
	in sponsorship
	budget in 2020		+21,0 %
Total outstanding deposits	2020	2019
	MAD	MAD	compared to
	50,1 billion	41,4 billion	December 2019
Total outstanding loans	2020	2019	+19,3 %
	MAD	MAD	compared to
	52,0 billion	43,6 billion	December 2019

CIH BANK

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