Societe Generale Maroc (SGMA), will launch an investment program of 784 million dirhams (83 million dollars) over the period 2018-2019 in order to continue the implementation of its strategic orientations.
For the group, it will invest $ 44.9 million in 2018 and $ 38 million in 2019. An operation that will enable the bank to generate a GDP of 4.1 billion dirhams ($ 434 million) ) in 2018 and 4.4 billion dirhams ($ 465 million) in 2019.
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The transaction is part of its investment program, mainly related to the development of the branch network, supporting business projects, strengthening IT security and supporting regulatory changes.
The bank plans a slight increase in its Net Banking Income (GNP) in 2018 to $ 437 million and $ 465 million in 2019, against $ 423 million in 2017. The Gross Operating Profit (EBITDA) should reach 151 million in 2018 and $ 162 million in 2019, driven by the optimization of recovery tools and actions and the improvement of risk in certain customer segments.
According to its 2017 results, SGMA ranks fourth among Moroccan banks in terms of loans and fifth in terms of resources, with a market share of 8.5% and 6.8% respectively.
Launch of a loan of 800 million dirhams
SGMA, also obtained Monday, June 11, the visa of the Moroccan Authority of Capital Market (AMMC), to proceed to the issue of a subordinated bond of 800 million dirhams, or $ 84.72 million , June 19 to 21 included.
The transaction will enable SGMA to strengthen its equity following the acquisition of 34.95% of Eqdom’s share capital from SG Financial Services Holding. But also the issue will participate in financing development of the bank’s business and monitor the growth of credit growth.
In addition, for the bank, it will be through the operation to diversify its sources of financing in the long term and improve financing costs, but also to prepare for long-term financing opportunities and to consolidate image of the bank vis-à-vis the main partners.
