Casablanca – New data reveals a resurgence in profits for companies listed on the Casablanca Stock Exchange over the past year, driven by advancements across various sectors, particularly the banking sector. The sector contributed to 73 percent of the overall sectoral transaction growth, which reached 9.4 billion Dirhams, (approximately $970 million). This marks an increase of around $950 million compared to the same period last year. These figures were disclosed in a report from the stock exchange firm “Morocco for Brokerage Services” (MSIN).

The report indicates that the total transaction value of listed companies on the stock exchange rose to 303.6 billion Dirhams, a 4.4 percent increase compared to 2022. The growth amounted to 12.9 billion Dirhams, primarily driven by the resurgence of the banking sector. Other contributing sectors include construction, public works, distribution, and telecommunications.

The increase in corporate transaction values coincided with a continued inflation rate development, standing at 6.1 percent over the past year, compared to 6.6 percent in 2022. Various factors, such as supply shocks affecting food prices, cautious monetary policy managed by the Central Bank of Morocco, and climatic challenges, in addition to the depreciation of the dirham against the dollar, played a role.

The report highlighted the resilience of banks amidst local and global economic and climatic challenges. The banking sector managed to lift its profits by 2.6 billion Dirhams (approximately $268 million), marking a consistent upward trend over the past three years, reaching the highest level since 2016.

Additionally, the report documented an increase in the operating results and commission and interest margin profits of the seven major banks in the sector. Furthermore, the sectoral utilization result saw a notable 16.7 percent increase, reaching 28.3 billion Dirhams (approximately $2.9 billion).

The annual statistics of the Casablanca Stock Exchange, as outlined in the MSIN report, highlighted promising financial prospects in sectors like construction, public works, and distribution. Companies experienced upward trends, driven by increased construction projects and inflation rates.