CIH Bank: 31.2% Growth in Net Profit Group Share as of End-September 2025

CIH Bank has released its financial indicators as of September 30, 2025.

Customer Deposits

Customer deposits totaled 90.1 billion Moroccan dirhams (MMDH), recording a 6.7% increase compared to December 2024 and a 13.4% year-on-year rise. These deposits primarily comprise those of CIH Bank, amounting to 77.8 MMDH (up 5.8%), and UMNIA Bank, at 7.6 MMDH (up 20.4%). As of end-September 2025, sight deposits accounted for 84% of customer resources, remaining stable relative to end-2024 levels.

Customer Loans

Consolidated loan outstanding balances¹ reached 96.8 MMDH, reflecting a 14.6% increase from December 2024 and a 13.7% annual uptick. In terms of contribution, CIH Bank’s loans stood at 65.7 MMDH, while SOFAC and UMNIA Bank contributed 20.4 MMDH and 10.7 MMDH, respectively. Furthermore, the consolidated balance sheet total reached 150.5 MMDH, marking a 6.8% rise compared to end-2024.

Performance Indicators

At the consolidated level, net banking income (NBI) reached 4,040.9 million dirhams (MDH), up 14.3% from September 2024. This growth stems notably from expanded commercial activity and strong performance in market operations. The structure of consolidated NBI remained largely stable over the period.

Building on proactive and prudent risk management, CIH Bank’s consolidated cost of risk amounted to 818.0 MDH, with the cost-of-risk ratio at 0.80%.

Consolidated net profit stood at 954.8 MDH as of end-September 2025, representing a 34.2% increase from 711.7 MDH in September 2024.

Net profit group share amounted to 862.3 MDH, up 31.2% year-on-year.

On a standalone basis, NBI reached 3,219.5 MDH, up 10.4% from September 2024.

The standalone cost of risk as of end-September 2025 was 602.0 MDH.

Standalone net profit rose to 810.4 MDH as of end-September 2025, compared to 611.6 MDH the previous year, equating to a 32.5% increase.

¹ Excluding treasury bills.

Interest and Advantages for Foreign Investors and Institutions in Moroccan Stocks – Focus on CIH Bank

CIH Bank (Casablanca Stock Exchange ticker: CIH, ISIN: MA0000011454) stands as a cornerstone of Morocco’s banking sector, offering foreign investors and institutions a gateway to the kingdom’s resilient financial services market. As one of the oldest institutions—founded in 1920 and transformed into a universal bank post-2010—the bank has demonstrated robust growth, with its Q3 2025 results underscoring a healthy loan-to-deposit ratio of ~107% (96.8 B MMDH loans vs. 90.1 B MMDH deposits) and a low cost-of-risk ratio of 0.80%, signaling effective asset quality management amid Morocco’s 3-4% GDP expansion.

Trading at approximately 402 MAD per share as of November 29, 2025 (market cap: ~14.31 billion MAD or $1.54 billion), with a trailing P/E of ~10-12x and a dividend yield of 3.48%, CIH provides attractive value in a sector buoyed by infrastructure spending (e.g., 2030 FIFA World Cup) and digital inclusion initiatives. Its 67.55% ownership by state-backed Caisse de Dépôt et de Gestion (CDG) adds a layer of stability, while a 32.45% free float supports liquidity for institutional entry.

Key advantages for foreign investors and institutions include:

•  Strong Growth Trajectory and Diversification: CIH’s 31.2% net profit group share surge to 862.3 MDH in 9M 2025 reflects 14.3% NBI growth, driven by commercial expansion and subsidiaries like UMNIA Bank (20.4% deposit growth) and SOFAC. This positions it to capitalize on Morocco’s $50+ billion infrastructure pipeline and AfCFTA opportunities, offering uncorrelated returns (CSE banking beta ~0.8 to MSCI EM) for portfolio diversification.

•  Prudent Risk Profile and Efficiency: With an efficiency ratio improved to 44% (from 56% in 2020) and average annual NBI growth of 15% over the past five years, CIH exemplifies operational leverage. Foreign institutions benefit from exposure to low non-performing loan ratios (<4%) and government-backed lending in priority sectors like real estate and renewables.

•  Favorable Tax and Repatriation Regime: Non-residents face a 15% withholding tax on dividends (reducible to 10% or lower via 70+ double-taxation treaties, e.g., with the US/EU), full repatriation of capital and profits, and no capital gains tax on shares held over six months. CIH’s remote account-opening tools (e.g., CODE 212 for diaspora) and partnerships like Google Pay enhance accessibility for international clients.

•  Digital and ESG Synergies: As a leader in fintech (e.g., CIH Mobile app with 1M+ users, CIH PAY with Mastercard), CIH aligns with Morocco’s digital economy push, attracting ESG funds via financial inclusion efforts (serving SMEs and unbanked via 1,400+ Lana Cash points). This complements broader CSE exposure, with CIH’s ROE >15% supporting sustainable yields.

In summary, CIH Bank offers foreign allocators a defensive yet growth-oriented play on North Africa’s banking hub, with multi-year visibility from rising deposits (13.4% YoY) and a conservative balance sheet (CET1 ratio ~14%). Institutions should consult the CSE investor portal for real-time filings, leveraging Morocco’s streamlined forex rules for seamless integration into emerging market mandates.