After years of rapid expansion, CIH Bank has entered a strategic phase of consolidation, balancing aggressive growth with measured adjustments. According to a report by Attijari Global Research (AGR), this approach reflects the bank’s resilience and its ability to navigate a challenging economic environment while delivering strong financial results.
Between 2017 and 2023, CIH Bank posted an impressive average annual growth rate of +14.5% in net banking income (NBI). However, projections for 2024-2026 indicate a more moderate trajectory with an expected +5.7% average annual growth, signaling a shift towards strategic maturity after a phase of rapid expansion.
This moderation is accompanied by a significant improvement in operational efficiency. The bank’s cost-to-income ratio is forecasted to reach 43.3% by 2026, marking a 1.3-point improvement from 2023. This highlights CIH Bank’s focus on cost management and operational competitiveness amid sectoral challenges.
CIH Bank’s cost of risk (CoR), which peaked at 134 basis points (bps) in 2023 due to factoring irregularities, is expected to stabilize at 113 bps over the 2024-2026 period. This translates to approximately 1.3 billion dirhams, underscoring a disciplined approach to risk management that safeguards the bank’s overall performance amidst economic uncertainties.
The bank’s net income group share (RNPG) is projected to surpass 900 million dirhams by 2026, achieving a compound annual growth rate (CAGR) of +9.3% from 2023 to 2026. CIH Bank’s valuation metrics also present a compelling case for investors, with a projected price-to-earnings (P/E) ratio of 13.8x in 2026, below the MASI average of 18.9x, positioning it as a competitively valued asset.
CIH Bank continues to attract investors with its generous dividend distribution strategy. The dividend per share (DPS) is set to grow at an annual average rate of +12.6%, resulting in a dividend yield (D/Y) of 4.4% over the 2024-2026 period—outperforming the sector average of 3.5%. This robust policy appeals to investors seeking stable returns and long-term growth.
Thanks to meticulous cost control and a balanced growth strategy, CIH Bank stands out as a key player in Morocco’s banking sector. AGR identifies it as a compelling investment opportunity, offering strong financial prospects, attractive returns, and prudent risk management, even in a demanding economic climate.
