2019 2019 ANNUAL ANNUAL INTEGRATED INTEGRATED REPORT REPORT INTRODUCING THE GROUP.....................................................................................................................................................8 BANK OF AFRICA, more than 60 years of continuous development ................................................................................9 BANK OF AFRICA Today......................................................................................................................................................................................... 11 Shareholders ........................................................................................................................................................................................................................ 13 BANK OF AFRICA Group’s business lines............................................................................................................................................... 16 Geographical presence................................................................................................................................................................................................ 17 A pan-African vocation................................................................................................................................................................................................ 18 Intra-Group synergies for Africa’s development ................................................................................................................................... 19 BMCE Bank Foundation ............................................................................................................................................................................................21 THE GROUP IN ITS ECOSYSTEM.................................................................................................................................26 Adapting to an ever-changing national, continental and international environment.............................................27 GOVERNANCE..........................................................................................................................................................................................................28 Board of Directors.......................................................................................................................................................................................................... 30 Corporate governance................................................................................................................................................................................................. 33 Compliance .......................................................................................................................................................................................................................... 34 Sustainable Development and CSR Governance ................................................................................................................................ 35 Risk and opportunities............................................................................................................................................................................................... 37 STRATEGY AND RESOURCE ALLOCATION...........................................................................................................38 The 2019-21 strategic development plan: Growth accelerator ................................................................................................ 39 Value creation levers .................................................................................................................................................................................................... 44 PERFORMANCE.....................................................................................................................................................................................................48 Economic performance............................................................................................................................................................................................. 49 Widely recognized in Sustainable Development and CSR performance........................................................................ 54 GOVERNANCE REPORT..........................................................................................................................................................................66 RISK MANAGEMENT.....................................................................................................................................................................................96 SUMMARY FINANCIAL REPORT...................................................................................................................................................................................114 In 2019, Banque Marocaine du Commerce Extérieur celebrated the 60th anniversary of its founding in 1959 by Royal Decree. This anniversary provides the perfect opportunity to rename our Group ‘BANK OF AFRICA BMCE GROUP’, in preparation for the next phase of our development. While retaining our identity as a member of the ‘BMCE Group’, the name change underlines our commitment to being an integral part of the pan-African banking landscape thanks to the unparalleled brand power enjoyed by the ‘BANK OF AFRICA’ brand, one with which Africans, whatever their nationality or country of residence, readily identify. Othman BENJELLOUN BMCE BANK OF AFRICA becomes “The Bank was established in 1959 by Royal Decree as ‘Banque Marocaine du Commerce Extérieur’ prior to becoming ‘BMCE Bank of Africa’ in 2015. Over the past 60 years, the Bank has gradually developed into a multi-national multi-business group. This transformation has seen it evolve from an institution specialising in international trade into a universal bank and, more recently, a continental group, leveraging its know-how in the pursuit of innovation, progress and excellence. With an international outlook and one of the continent’s leading banking networks, the Bank’s longstanding ambition has been to ensure that the 21st century belongs to Africa. In 2020, the Bank marked a fresh milestone in its history. BMCE Bank of Africa becoming Bank of Africa was the next logical step in the Bank’s development. The new name reflects the Bank’s vocation, which is to serve Africa and further expand its global outreach. The new corporate logo is in the shape of a cut diamond, which is a reference to the African continent. Alongside the logo is the name ‘BANK OF AFRICA’ in bold and its belonging to BMCE Group. Excerpt from the presentation made to the Extraordinary General Meeting of Shareholders 5 March 2020, resulting in the Memorandum and Articles of Association being amended. CHAIRMAN’S MESSAGE BANK OF AFRICA – BMCE Group is publishing its first Integrated Report in respect of the 2019 financial year, in accordance with the International Integrated Reporting Council's globally accepted integrated reporting framework. As its name would suggest, this reporting format provides an integrated framework for reporting financial as well as non- financial performance. It also allows us to scrutinise more closely the various Environmental, Social and Governance (ESG) challenges that we face, consistent with our approach in recent years regarding corporate social and environmental responsibility. Othman BENJELLOUN Chairman & Chief Executive Officer BANK OF AFRICA In terms of performance, the highlights of the 2019 - Lastly, our Group continued to implement its digital financial year include: transformation process aimed at offering our retail and corporate customers a more straightforward - The Group's financial position was significantly banking experience via remote banking platforms. bolstered with shareholders’ equity attributable to shareholders of the parent company rising by 22%. This 2019 annual report is published in what are 2019 was marked by a large-scale transaction which unprecedented times around the world due to the resulted in a considerable increase in the Group’s COVID-19-related health crisis in 2020. Despite the capital, with CDC Group Plc, a UK investor, acquiring fact that this crisis has brought about major economic a stake in the company. and social upheaval, a world order is perhaps beginning to emerge. - A positive financial performance with consolidated net banking income rising by 5% year-on-year to We are committed to leveraging the opportunity MAD 13.9 billion while net income attributable to presented by this exceptional global situation to shareholders of the parent company increased by 5% accelerate change across our Group’s various to MAD 1.9 billion. businesses. Our aim is to generate even more short- and long-term value for our shareholders, customers - Geographic expansion, resulting in (i) an increased and other stakeholders in Morocco and in those contribution from African operations to the countries in which we have operations. Group’s operational and financial performance, (ii) an expansion of European operations and (iii) the opening of the first branch office by an African Bank in Shanghai. 2019 ANNUAL INTEGRATED REPORT I PAGE 6/7 INTRODUCING THE GROUP BANK OF AFRICA, more than 60 years of continuous development BANK OF AFRICA Today Shareholders BANK OF AFRICA Group’s business lines