Morocco’s leading banks are entering 2025 and 2026 on solid ground, well-positioned to explore new growth opportunities. That’s the assessment shared by Fitch Ratings in its latest analysis of the performance of the country’s seven largest banking groups.
According to the report, the sector saw a remarkable 22% rise in combined net income in 2024, despite a climb in provisions for non-performing loans. This growth has been fueled by stronger trading gains from fixed-income securities, a notable increase in net interest income, and tight control over operational expenses.
For years, Moroccan banks operated under tight capital margins, which had previously limited their capacity for expansion. However, the landscape is shifting. Fitch notes that improved profitability, coupled with recent issuances of subordinated debt, has bolstered the financial resilience of these institutions. This, in turn, has given them greater flexibility to pursue expansion strategies.
The outlook for the broader economic environment is also brightening, both within Morocco and across other African markets where these banks have a presence. Fitch believes there is still considerable room for improvement, with expectations of further reductions in loan loss provisions and a boost in business volumes.
In addition, Fitch points to the potential catalytic effect of large-scale infrastructure projects currently in the planning stages. These initiatives, with financing needs that could surpass $100 billion by 2030, are expected to drive up demand for corporate lending and stimulate bank credit growth.
The report also highlights the solid structural underpinnings of the banking sector’s funding model. Moroccan banks continue to rely primarily on customer deposits—a stable and low-cost resource. In 2024, this deposit base was further strengthened by government tax amnesty measures. This strong liquidity position allows banks to maintain their development ambitions while ensuring financial stability.
