Morocco’s financial system continues strengthening its fundamentals, with banking and insurance sectors demonstrating robust performance, according to the Committee for Coordination and Supervision of Systemic Risks following its twenty-second session Tuesday at Bank Al-Maghrib headquarters.
The banking sector recorded substantial profitability gains alongside reinforced solvency. Net income on a standalone basis increased 25% year-on-year through June 2025, driven by strong market activities and intermediation performance. This growth bolstered credit institutions’ solvency ratios, with Tier 1 capital averaging 13.8% and total capital reaching 16.4%, well above regulatory minimums of 9% and 12% respectively. Consolidated ratios stood at 12.3% and 14.3% for the first semester.
Bank Al-Maghrib’s macroeconomic stress tests confirmed sector resilience against severe shocks while maintaining prudential requirements. Short-term liquidity ratios remained above regulatory thresholds, though the committee noted gradually increasing liquidity needs, projected at 158 billion dirhams by 2027, partly due to anticipated currency circulation growth. Despite these pressures, bank credit to the non-financial sector should accelerate to 4.1% growth in 2025 and average nearly 5% over the projection horizon.
Non-performing loans remained relatively elevated at 8.7% through September 2025, though coverage ratios stood at a comfortable 69%. Insurance sector fundamentals proved equally solid, with premiums reaching 53.6 billion dirhams by October 2025, up 8.1% annually. Both non-life and life insurance segments grew 7.9% and 8.3% respectively.
Investment portfolios appreciated 5% to 257.9 billion dirhams, while unrealized capital gains surged 71.6% to 63.6 billion dirhams, benefiting from favorable stock market conditions and declining interest rates. Net income improved 13.4% year-on-year, supported by financial activity performance, with solvency margins remaining substantially above regulatory minimums.
The assessment confirms Morocco’s financial system stability amid managed liquidity requirements and sustained market dynamics.
