Banks and cement companies leading the profit momentum

At the end of the first half of 2025, 73 listed companies released their financial results. Thus, 57 listed companies announced an increase in their profits, representing 86% of the Moroccan market capitalization.

During this first half, listed companies operated in a generally favorable environment marked by: a significant acceleration in economic growth, rising from +3.0% in H1-24 to +5.2%, a continued easing of inflation in Morocco to less than 1.0% on average, and Bank Al-Maghrib maintaining an accommodative monetary policy that prioritizes the "investment/growth" pair. However, the depreciation of the Dollar had a visible negative impact on the mid-term results of several exporting companies.

The analysis of 2025 mid-term results of listed companies reveals three key messages which are as follows:

  • The market’s profitability reached record levels, with an operating margin close to 26.0%. This was due to the sustainability of the upward trend in revenue in a disinflationary context in Morocco. At the end of this first half, the operating profit of the market grew 2.0 times faster than revenue, i.e. +14.5% Vs. +7.0% respectively;
  • Despite the negative impact of the Dollar depreciation on the results of exporting companies, the recurring profit growth is in line with that of operating income, i.e. +14.1% to MAD 24 Bn. However, we believe in a deceleration in profit growth from 2025E following a high base effect of results combined with a more moderate growth of revenue;
  • Two sectors catch our attention. On the one hand, banks, which remain the main driver of the market’s profit growth with a contribution of MAD +1.9 Bn, i.e. two-thirds of the profit variation (MAD +3.0 Bn). On the other hand, cement companies, which are positioned as the second largest contributor to the variation in the market's profits. This confirms the start of a new growth cycle for this sector.

Improving profitability in a disinflationary context

The achievements of listed companies in H1-25 are positive. These are as follows:

  • The aggregate revenue of the market shows an appreciation of +7.0%, i.e. its highest level over the last three years;
  • The recurring operating income stood at MAD 43.3 Bn, compared to MAD 37.9 Bn a year earlier. This represents a growth of +14.5%, twice that of revenue. In this context, the operating margin increased by +1.7 points to reach 25.9% in H1-25. According to press releases of listed companies, the improvement in profitability levels is supported by the easing of inflationary pressures internationally combined with the deployment of post-Covid cost control policies;
  • The recurring profits of listed companies amounted to MAD 24.2 Bn, up +14.1% compared to +21.6% in H1-24. This profit growth seems to be normalizing due to an increasingly high base effect from 2024. It is important to note that exporting companies suffered a negative exchange rate effect during this first half of the year due to the depreciation of the Dollar against the Dirham by -4.4%. This observation resulted in exchange rate losses for almost ten companies.

57 listed companies posted improved results

At the end of the first half of this year, 57 listed companies representing 86% of the market’s capitalization posted improved results compared to H1-24. In the opposite, 16 listed companies reported a decline in their H1-25 profits. These companies account for 14% of the market’s capitalization. Meanhwile, we noted five issuers which posted losses. These are HPS, SNEP, Unimer, M2M Group, and Stokvis Nord Afrique.

The banking sector accounts for almost two-thirds of profit growth

The table below illustrates the contribution of the main sectors to the growth of the market’s recurring earnings which settled at MAD +3.0 Bn. To this end, two key points should be remembered:

  • The Banking sector posted an increase of MAD +1,924 Mn in its aggregate net income, accounting for more than 64% of the market's growth. This was due to the continued improvement in net banking income combined with good control of expenses and the cost of risk. This declined by -10.8%, thanks in part to ATW bank, whose COR fell by -36.8%.
  • The Cement sector is positioned as the second largest contributor to the market's earnings growth, for the first time since the Covid-19 crisis. This observation reflects the start of a new growth cycle for the sector after a decade of sluggishness.

Market: contribution in MAD Mn to recurring earning power in H1-25

In relative variation, the listed sectors show the following changes in their mid-term earnings:

  • 13 sectors which account for 76% of the capitalization, show an improvement in their profits: Automotive (+93%), Healthcare (+74%), Real Estate (+42%), Building Materials (+40%), Industry & Services (+33%), Cement (+28%), Ports (+23%), Mines (+20%), Banks (+18%), Financing (+10%), Insurance (+6%), Mass Distribution (+4%) and Agriculture (+3%);
  • Maroc Telecom, which weighs 10% in overall capitalization, shows an almost-stable recurring NIGS;
  • 3 sectors recorded a decline in their NIGS at the end of June 2025. These are Energy (-12%), Agri-business (-18%) and IT (-51%) which represent 14% of the market’s capitalization.
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