(Ecofin Agency) - Moroccan Attijariwafa Bank announced an increase in net profit in 2021. The fourth African bank by market capitalization says it ended 2021 with a consolidated net income of MAD6.2 billion ($653.4 million) and a net income group share of MAD 5.1 billion. The figures are up by 66.2% and 70.5% respectively, compared to 2020.

The group attributes this increase to a good operating performance and the decrease of the outstanding debts which reduces the cost of risk in its balance sheet. "The operating income grew by 53.7% to MAD 9.5 billion, thanks to a confirmed discipline in terms of cost control and the progressive normalization of the cost of risk," the bank explains.

The available financial reporting does not allow reading of all the indicators. But with net banking income up 2.2%, the strong growth in net income could be the result of a low base for comparison. In 2020, this indicator had fallen by more than 48% in dollar terms, mainly due to provisions made for credit repayment risks.

While the bank has performed well for 2021, it is still far from reaching its pre-pandemic levels. “We expect the recovery to continue in 2022 as business conditions improve and impairment charges decline. However, a return to its historical levels of about 2.5% is unlikely," Fitch Ratings said commenting on the results.