Casablanca – Banque Centrale Populaire (BCP) Group increased its net profit during the first half of 2026, with earnings benefiting from a substantial reduction in credit-related costs and continued growth in lending and deposits in Morocco. The improvement came despite a decline in consolidated net banking income, as market-related activities returned closer to more normal levels after an unusually strong performance in 2025.

Net income attributable to the group reached about $330 million at the end of June 2026, representing a 10.4% increase from the same period a year earlier. Consolidated net income rose by 8.7% to approximately $391 million.

The stronger bottom line was largely linked to developments in the group’s cost of risk. This measure fell by 60% during the six-month period to around $113 million. The decline reflected improved recovery operations and continued work to clean up the credit portfolio, reducing the amount allocated to covering potential losses.

The reduction in risk costs provided a significant offset to weaker revenue from market activities. Consolidated net banking income declined by 3.2% to about $1.39 billion. The movement was mainly associated with the normalization of market-related income after the exceptional contribution recorded in 2025.

The figures therefore point to a mixed performance across the group’s different sources of revenue. While market activities contributed less than during the previous year, recurring banking operations continued to expand, supported by interest income, commissions and stronger customer activity.

Core banking revenue, excluding market-related activities, increased by 6.6%. Net interest income grew by 5.9%, while commission income advanced by 9.1%. These increases indicate continued expansion in the group’s traditional banking operations, particularly in areas linked to financing and customer services.

Operating expenses also moved higher during the period. General operating costs increased by 6.2% to roughly $618 million. The rise was partly associated with the integration of Amifa into the group’s consolidated accounts. Despite the increase in expenses, the operating ratio stood at 44.7%, reflecting the relationship between operating costs and banking income.

The lending business recorded further expansion during the first six months of the year. Consolidated gross customer loans increased by 5.7% to approximately $34.76 billion. Growth was stronger in Morocco, where loans distributed by the group increased by 7.9% to more than $25.54 billion.

Corporate financing was one of the main factors supporting the increase in domestic lending. The expansion comes as Moroccan companies continue to require financing for investment, working capital and business expansion, while banks remain an important source of funding for the private sector.

Deposits also increased during the period, providing the group with a larger pool of customer resources to support its lending operations. Consolidated resources reached about $44.24 billion at the end of June, up 9% year on year. The group also recorded more than $3.6 billion in additional deposits over the preceding 12 months.

Within Morocco, customer deposits rose by 6.5% to approximately $34.63 billion. Non-interest-bearing deposits accounted for 79.6% of the total. The composition of deposits remains an important factor for banking profitability because it influences the cost of funding available for loans and other financial activities.

The growth in domestic lending and deposits also highlights the continuing importance of Morocco to the group’s business. Although BCP operates internationally through subsidiaries and branches, its Moroccan banking operations remain a major source of customer financing and deposits.

International activities accounted for 21% of consolidated net banking income during the first half of 2026. Their gross banking revenue increased by 8.1%, indicating that operations outside Morocco continued to provide an additional source of revenue while domestic activities expanded.

Professional subsidiaries in Morocco contributed another 13% of consolidated net banking income. These businesses broaden the group’s activities beyond traditional retail banking and include specialized financial services serving companies, institutions and other customers.

The group also maintained substantial financial buffers at the end of June. It held a support fund of approximately $453 million dedicated to its cooperative model, while general risk provisions stood at around $680 million. These provisions provide coverage against potential risks that may affect the group’s financial position.

BCP’s first-half performance comes as Morocco’s banking sector operates in an environment marked by continued credit demand, investment activity and changing financing conditions. For banks, the balance between loan growth, deposit collection, interest margins, operating expenses and provisions remains central to earnings.

For BCP, the first six months of 2026 show that profit growth did not depend on an increase in consolidated banking income. Instead, the improvement in earnings was primarily supported by the sharp reduction in the cost of risk, combined with continued expansion in recurring banking activities.

The decline in market-related revenue also provides an important comparison with the previous year. Strong market performance in 2025 had lifted that component of income to unusually high levels, making a moderation in 2026 less indicative of a contraction in the group’s underlying banking operations. The increase in interest and commission income provides a different measure of activity because these revenues are more closely linked to customer lending, deposits and day-to-day banking services.

The rise in loans and deposits further indicates that the group continued to expand its balance-sheet activity during the period. Domestic loans grew faster than consolidated loans, while Moroccan deposits also recorded solid growth. Corporate financing remained an important component of this expansion.

At the same time, higher operating expenses and the integration of Amifa added to the group’s cost base. Managing this increase while maintaining the pace of business growth will remain an important factor for the bank as the year progresses.

The first-half figures consequently present a combination of higher profitability, stronger core banking activity and lower credit-risk charges, alongside weaker market-related revenue and higher operating expenses. The group entered the second half of 2026 with a larger loan book, higher deposits and substantial provisions and support funds on its balance sheet.