Banks operating in the country collected 104 billion dirhams last year due to differences in rates set for various loans. This is the highest amount in their history, compared to 97.8 billion dirhams in 2023, indicating an increase of 6.2 billion dirhams with an annual growth of 6.3%. According to the financial stability report published by the Central Bank yesterday, the share of banks' profits from annual income reached 69.8%.
Since 2020, the percentage of loans has consistently increased due to the rise in the base interest rate, increased demand for financing, and the activation of economic activity. According to this report, the volume of liquid assets in the banking sector at the end of last year amounted to 817 billion dirhams, which constitutes 18% of the total asset value of 4.5 trillion dirhams, compared to 744 billion dirhams at the end of 2023, indicating an annual growth of 73 billion dirhams with a yearly increase of 9.8%.
The report also noted that the volume of non-performing loans reached a minimal mark at the end of last year, amounting to 99.8 billion dirhams in December, which is equivalent to 4.1% of the total loan portfolio of 2.4 trillion dirhams, compared to 116.3 billion dirhams at the end of 2023, indicating an annual decrease of 16.5 billion dirhams or 14%.
The reduction in the volume of non-performing loans is primarily attributed to the quality and verification of the lending process, which positively influences bank profits. The Central Bank establishes a strict policy for classifying loans to ensure their control and assurance of repayment capabilities, where reductions are one of the key indicators of financial stability in the banking sector. The Central Bank’s system predicts five levels of loan classification: standard loans, loans under observation, loans below standard, loans with an indeterminate repayment amount, and non-performing loans, that is, overdue or written-off.
