Casablanca – Morocco’s banking sector showed renewed momentum in lending to the non-financial sector during October 2025, reflecting a continued recovery in corporate and household financing despite lingering pressures on certain loan categories. According to the latest monetary statistics released by Bank Al-Maghrib, total outstanding loans to the non-financial sector reached approximately $101 billion by the end of October, up $0.54 billion from September.

Bank lending growth to this sector accelerated to 3.6% in October, following a 3% rise in September. This increase was driven primarily by loans to non-financial companies and households. Lending to private companies rose 1.4%, compared with 0.8% in the previous month, while public non-financial companies saw a sharp increase of 11%, up from 6.4%. Household loans also improved, rising to 3.1% after 2.9% in September, reflecting stable demand for consumer and housing finance.

The total stock of bank credit over the first ten months of 2025 reached approximately $122.5 billion, marking a 6% year-on-year increase. The private sector held the bulk of these loans at around $89.3 billion, including $46.8 billion to private companies and $40.5 billion to households. Public sector entities, excluding central agencies, accounted for $11.7 billion, up 8.2% from the previous month, including $2.7 billion to local administrations and $9 billion to public non-financial companies.

By loan purpose, the data highlighted several trends. Treasury facilities declined at a slower pace of 4.8%, improving from a 6.6% decrease in the previous month. Consumer loans grew 4.5%, up from 4.2%, reflecting steady household demand. Equipment loans remained near stable at 16.4%, while mortgage loans increased slightly to 3.2%. Participatory housing finance, a growing segment, reached $2.95 billion, a 19% rise compared with October 2024.

Equipment loans expanded substantially to $28 billion, rising 21.9% from the previous year, supporting business investment in machinery and production capacity. Mortgage loans totaled $33 billion, including $6.2 billion allocated to real estate developers (+4.5%) and $26.3 billion to individual housing (+3.3%). Consumer loans amounted to $6.3 billion, marking an increase of $0.27 billion from the previous year. Miscellaneous receivables from clients also strengthened, increasing by $0.43 billion to $18.5 billion.

Non-performing loans remained relatively stable, with a slight year-on-year increase of 3.7%, reaching approximately $10.5 billion, while the overall non-performing loan ratio stayed steady at 8.6%. This stability indicates that, despite ongoing pressures in some sectors, banks have maintained sound credit management practices.

Analysis of growth trends over the past year shows some fluctuations. Late-2024 reports had highlighted a slowdown in overall bank lending to 2.4% in October, due to weaker growth in loans to private and public companies, near-stagnant household credit, and a deeper decline in loans to self-employed entrepreneurs. However, by October 2025, lending recovered across almost all categories, underlining renewed confidence in both corporate and household borrowing.

The data suggest that Morocco’s banking sector is playing a crucial role in supporting economic activity. Steady growth in corporate loans facilitates business investment, particularly for private and public non-financial companies, while the continued expansion of consumer and housing credit strengthens household purchasing power. The slight increase in non-performing loans remains manageable, with ratios stable, indicating that banks are maintaining prudent risk management even as lending volumes rise.

This combination of growth in lending and controlled credit risk points to a resilient financial sector capable of sustaining Morocco’s broader economic recovery. With total banking credit surpassing $122 billion and continued stability in loan quality, banks are well-positioned to support businesses and households in financing activities and investments, even amid global economic uncertainties and domestic market fluctuations.