Bank of Africa: strengthened growth momentum
The Group's 2025 achievements come out in line with our initial forecasts. This finding reinforces the credibility of our growth scenario over the 2025-2027 period.
Under these conditions, we maintain our BUY recommendation on the BOA stock with a target price of MAD 300, offering an upside of +48% on the MT. The key takeaways from BOA Group's 2025 results are as follows:
- Net Banking Income (NBI) grew by +8.7% to MAD 20,339 Mn, broadly in line with our initial forecast of MAD 20,038 Mn (+7.1%). The Interest Income accounts for nearly 70% of the NBI growth, posting a +8.6% increase. This was driven by a positive volume effect on loans of +2.3%, exceeding MAD 230 Bn (+MAD 5.2 Bn), supported by the equipment loans segment in Morocco (+18.3%). We also note an improvement in the interest margin thanks to a lower cost of funding, after the strengthened share of free-interest deposits (78.0% vs. 74.6% in 2024). The Fees Income rose by +6.8% to MAD 4,182 Mn and Income from MA & Other grew by +13.4% to MAD 1,834 Mn against an AGR forecast of MAD 2,148 Mn;
- The Cost-to-Income ratio (C/I ratio) declined at a slower pace than our initial forecasts, down -0.7 pt to 45.8% vs. 44.6%. This trend reflects a relative control of operating expenses (+7.1%) against a more sustained growth in NBI (+8.7%);
- The Cost of Risk settled at MAD 3,288 Mn (+3.5%), in line with our initial estimate of MAD 3,316 Mn. As a result, the CoR rate(4) remained almost stable in 2025 at 130 BPS;
- Net Income Group Share (NIGS) stood at MAD 3,814 Mn, up +11.3%, consistent with our forecast of MAD 3,844 Mn. As expected, the Dividend Per Share (DPS) remained stable at MAD 10.0. This takes into account a capital increase through incorporation of reserves, resulting in the distribution of free shares to shareholders worth MAD 5.0 per share.
