Moroccan banks continue to show resilience despite challenging global and domestic macro-economic conditions, Fitch Ratings says in a new report focusing on the country’s seven largest banks. Banks have built up healthy provisions buffers since 2020 and are well-placed for a continued recovery in profitability in 2024 amid rising interest rates, says the rating agency. Banks’ profitability metrics improved sharply in 1st half of 2023, helped by interest rates at their highest levels since 2017. According to Fitch forecast, Moroccan banks are geared towards rising rates as profitability will continue improving in 2024. Some banks continue to report tight regulatory capital buffers, which will be increased by Tier 1 and 2 capital instruments.

Source: The North Africa Journal December 21, 2023 21:03 UTC