Casablanca – Over the past decade, Morocco’s banking sector has steadily strengthened its financial position, emerging as one of the most profitable and structurally important pillars of the national economy. Despite periods of economic stress, most notably during the COVID-19 pandemic, banks have managed to expand profits, mobilize savings, finance investment, and support large-scale development projects. The evolution of bank profits between 2015 and 2025 illustrates both the sector’s resilience and its central role in Morocco’s economic transformation.

Between mid-2017 and mid-2025, combined profits of Moroccan banks listed on the Casablanca Stock Exchange more than doubled. Net profits rose from the equivalent of about $0.63 billion in the first half of 2017 to approximately $1.29 billion by the first half of 2025. This trajectory was not linear. Moderate growth was recorded in the years preceding the pandemic, with profits reaching around $0.66 billion in 2018 and $0.67 billion in 2019. The health crisis of 2020 marked a sharp break, as profits fell to roughly $0.29 billion, reflecting higher provisions, weaker economic activity, and exceptional support measures for households and businesses.

From 2021 onward, the sector entered a strong recovery phase. As economic conditions gradually improved and investment momentum returned, profits rebounded to about $0.82 billion in 2023, climbed further to nearly $1.08 billion in 2024, and reached a new peak of $1.29 billion in the first half of 2025. This recovery highlights the ability of Moroccan banks to adapt to shocks, restore profitability, and benefit from a more favorable macroeconomic environment.

The renewed profitability of banks has gone hand in hand with their dominant position in the financial market. The banking sector accounts for roughly one-third of the total market capitalization of the Casablanca Stock Exchange and generates close to half of total listed company profits. Strong bank results have also supported investor confidence, contributing to a sharp rise in the benchmark stock index over recent years.

Beyond profits, the contribution of banks to the Moroccan economy is reflected in their role as financial intermediaries. Over the past decade, banks have significantly expanded both deposits and lending, reinforcing the structural foundations of the financial system. Customer deposits increased from around $84.0 billion in 2015 to nearly $133.9 billion by October 2025, representing an average annual growth rate of about 4.8%. This steady rise points to a growing capacity to mobilize domestic savings, even during periods of uncertainty.

Deposit growth accelerated at several points during the decade, notably in 2020, 2022, and 2024. These phases were driven by a combination of precautionary saving behavior during successive crises and exceptional factors, such as fiscal measures that encouraged the reintegration of cash into the formal banking system. The result has been a broader and more stable deposit base, strengthening banks’ funding capacity.

At the same time, bank lending expanded from approximately $80.8 billion in 2015 to more than $122.5 billion by October 2025. Credit growth has supported key sectors of the economy, including construction, tourism, industry, and services, while also financing households. Although loans have grown at a slightly slower pace than deposits, this imbalance has generated a relatively comfortable level of structural liquidity within the banking system. Such liquidity allows banks to meet financing needs while complying with prudential and regulatory requirements.

The evolution of risk costs over the decade further illustrates the sector’s adjustment to changing economic conditions. Between 2015 and 2019, annual risk costs remained broadly stable at around $0.72–0.82 billion. In 2020, they surged to approximately $1.29 billion as banks increased provisions in response to the pandemic. With the gradual improvement in asset quality and economic activity, risk costs declined between 2021 and 2023, before rising again in 2024 to more than $1.34 billion, reflecting more cautious provisioning for sensitive exposures.

The broader economic impact of banking sector profitability is closely linked to Morocco’s investment cycle. Banks have played a key role in financing major infrastructure and development projects, including transport networks, airports, highways, sports facilities, and water desalination plants. These projects, with total planned investments estimated at around $170 billion by the end of the current decade, are central to Morocco’s growth strategy and its preparations for hosting major international events.

International rating agencies have highlighted these trends, noting that Moroccan banks are well positioned to achieve sustained profitability in the coming years. Rising demand for credit, particularly in non-agricultural industries, construction, and tourism, is expected to continue supporting earnings, provided that macroeconomic stability is maintained.

The past decade has confirmed the strategic importance of Morocco’s banking sector. Through rising profits, expanding deposits and loans, and a growing contribution to investment and financial stability, banks have become a cornerstone of the national economy. Their ability to withstand shocks and support long-term development underscores their central role in Morocco’s economic trajectory.