Annual Report 2007 WorldReginfo - 0dda50ba-2467-45d5-8e4b-97da50376e3d WorldReginfo - 0dda50ba-2467-45d5-8e4b-97da50376e3d In just a few years, Attijariwafa bank has performed the remarkable feat of meeting one challenge after another. Attijariwafa bank, which is market leader in all its business lines, is today considered as one of the key players in Morocco’s banking and financial services industry and in providing finance for the country’s keystone projects. Attijariwafa bank, with a healthy financial position and a risk management system meeting the highest international standards, has embarked on an ambitious yet well-planned international growth strategy. Given its ability to innovate and identify new niche growth opportunities, Attijariwafa bank is in the process of repeating overseas what it has achieved domestically and is fast becoming one of the most successful banks in the North and West African regions. Annual Report WorldReginfo - 0dda50ba-2467-45d5-8e4b-97da50376e3d 3 Contents WorldReginfo - 0dda50ba-2467-45d5-8e4b-97da50376e3d Chairman’s message 6 Governing bodies 8 Remarkable financial and commercial performance 2007 highlights 12 Attijariwafa bank in figures 14 An environment abounding in opportunities 16 Established leader in the domestic market Strong performance across the board Business activity indicators all positive 20 An effective commercial strategy 20 Keystone, value-creating projects 20 Contents Aggressive international strategy A watershed for Attijari bank Tunisie in North Africa 24 Encouraging acquisitions in Senegal 24 Promising niche growth opportunities in Europe 24 Highly valuable human capital Career management, a modern and motivating approach 28 High-quality training courses for skills enhancement 29 Quality and Compliance, two disciplines for preparing for the future Group Quality, a strategically important growth driver 34 Group Compliance, rigour and efficiency 34 A reputation for social responsibility A clear commitment to education 38 Culture, the finest of all treasures 40 2007 business activity – two divisions driving growth Retail Banking Division 44 Financing, Investment Banking & Capital Markets 55 and Financial Subsidiaries Division Global risk management 68 Financial report Management report 98 Parent company financial statements 122 Consolidated financial statements 143 Contacts 161 Annual Report WorldReginfo - 0dda50ba-2467-45d5-8e4b-97da50376e3d 5 Contents Chairman’s message At the end of 2007, Attijariwafa bank was once efforts at embracing comprehensive reforms due again market leader across all business lines. to the mobilisation of both human and financial resources. ‘‘ Attijariwafa bank has significantly outperformed Attijariwafa bank’s financial communication can now the objectives set out in its business 2005 plan. be considered as meeting the highest international Its performance in 2007 was noteworthy both standards after adopting International Financial Reporting Standards (IFRS) one year before the in terms of its commercial performance and its deadline set by Bank Al Maghrib. financial results. ’’ Attijariwafa bank’s new information systems policy is being progressively implemented with success. By significantly outperforming the objectives set This will enable the Group to integrate and monitor out in its 2005 business plan, Attijariwafa bank’s the performance of all its domestic and overseas performance was noteworthy in terms of both its com- subsidiaries. mercial performance and its financial results. Enjoying a strong reputation in the domestic market, Attijariwafa bank has made considerable efforts Attijariwafa bank has pursued pursue a well-planned throughout the entire year in launching new products and sound international growth strategy in 2007. and financial services and in gaining market share by taking full advantage of the many synergies We have further strengthened our presence in existing between its different business divisions. North Africa, West Africa and Europe since we are convinced of the need to participate in the proc- Attijariwafa bank has done particularly well in ess of developing regional trade and to adopt best non-interest bearing deposit-taking, lending and banking practices. in developing its bancassurance business. This was due to its status as market leader, a well-targeted In North Africa, Attijari bank Tunisie has embarked policy of customer proximity and a genuine involve- on a process of overhauling its sales organisation ment of staff at a local level. and information systems as part of its new Intilaq plan. The branch network was expanded by an additional 84 branches and more than a dozen new products The Group has also opened representative offices in for personal, professional and corporate banking Libya and the United Arab Emirates and has obtained customers were launched. This aggressive com- a licence for conducting business in Mauritania. mercial strategy has not hindered the Group’s WorldReginfo - 0dda50ba-2467-45d5-8e4b-97da50376e3d Attijari bank Sénégal, formed from the merger and effective strategic management. between Banque Sénégalo-Tunisienne (BST) and In December 2007, the Group modified its organi- Attijariwafa bank Sénégal, provides the Group sational structure without changing in any way its with a unique opportunity to gain market share in tried-and-tested system of governance which has Senegal, thanks to a network of 19 branches and proved successful. The aim is to give greater cohe- a staff of 189. sion to our businesses and markets by encouraging Attijariwafa bank is also in the process of acquir- synergies between the Bank’s different entities and ing 79.15% of CBAO, which will be finalised in the improving organisation and procedures relating to first half of 2008. This will strengthen even more global risk management and internal control. our presence in Senegal. The deal will result in the Staff commitment is unquestionably the quality Group bieng ranked amongst the leading banks in which forms the bedrock of our institution. At- the UEMOA region. tijariwafa bank will do its utmost to enhance its In Europe, Attijariwafa bank has not lost sight of human capital by developing skills and fostering new niche growth markets. We have decided to new talent. Our success depends not only on our delegate management of our European activities customers and shareholders but our employees to Attijariwafa bank Europe, our French subsidiary, to do business more effectively in a highly com- petitive market. Attijariwafa bank Europe has continued to expand its network in a confident manner by opening of two branches in Germany and the Netherlands and branches in Marseilles and Toulouse. To attract new customers and build customer loyalty amongst its target customer base of Moroccans living abroad, Attijariwafa bank is particularly well- Mohamed EL KETTANI armed to offer innovative products meeting the Chairman and Chief needs of a young and well-informed population in Executive Officer a highly competitive market. None of these challenges could have been met with- out a flexible yet highly-disciplined organisational structure, which is based on individual initiative Annual Report WorldReginfo - 0dda50ba-2467-45d5-8e4b-97da50376e3d 7 Chairman’s message Governing bodies Board of Directors Mr. Abdelaziz ALAMI Mr. Mohamed EL KETTANI Mr. Hassan BOUHEMOU Mr. Manuel VARELA Honorary Chairman Chairman and Chief Executive Officer Representing SNI Representing Grupo Santander Mr. El Mouatassim BELGHAZI Mr. José REIG Mr. Hassan OURIAGLI Vice Chairman Director Representing F3I Mr. Antonio ESCAMEZ TORRES Mr. Abed YACOUBI SOUSSANE Mr. Matias AMAT ROCA Vice Chairman Director Representing Corporacion Financiera Caja de Madrid Mr. Mounir EL MAJIDI Mr. Javier Hidalgo BLAZQUEZ Mrs. Wafaâ GUESSOUS Representing SIGER Director Secretary Audit and Accounts Committee Major Risks Committee Mr. Hassan OURIAGLI Guest members Mr. Hassan BOUHEMOU Mr. José REIG The Audit & Accounts Committee Mr. Mohamed EL KETTANI may invite any person to its meetings Mr. Abed YACOUBI SOUSSANE Mr. José REIG whom it considers useful for its work, in particular the heads of General Audit, Group Compliance, Global Risk Non-standing members Management, Group Recovery and Include divisional heads or any other Group Finance. persons with responsibility for those issues which are being discussed. Strategy Committee General Management Committee Mr. Hassan BOUHEMOU Associate members Mr. Mohamed EL KETTANI Non-standing members Mr. El Mouatassim BELGHAZI Include the Bank’s divisional Mr. Omar BOUNJOU Include those persons with Mr. Mohamed EL KEttani heads. Mr. Boubker JAÏ responsibility for those issues which are being discussed. Mr. Antonio ESCAMEZ TORRES Mr. Ismaïl DOUIRI Guest members Mr. José REIG Include divisional heads or any other persons with responsibility for those issues which are being discussed. WorldReginfo - 0dda50ba-2467-45d5-8e4b-97da50376e3d Executive Committee Mr. Mohamed EL KETTANI Mr. Hassan BEDRAOUI Mr. Omar GHOMARI Mr. Youssef ROUISSI Chairman and Chief Executive Group Information Systems Group Human Capital Personal and Professional Officer Banking Mr. Amin BENJELLOUN TOUIMI Mrs. Wafaâ GUESSOUS Mr. Omar BOUNJOU Specialised Financial Services Buying, Logistics and Secretary to Mr. Brahim SAÏD Managing Director, Retailing the Board General Audit Banking Division Mr. Saâd BENJELLOUN TOUIMI Corporate Banking Mr. Ali KADIRI Mr. Abdellatif SEDDIQI Mr. Boubker JAÏ Group Compliance Rationalisation of Structures Managing Director, Financing, Mr. Abdeljaouad