Summary:

A May 2025, report issued by Fitch Ratings indicated that the net income of Morocco’s banks increased by 22% in 2024 and predicted significant growth opportunities in 2025–2026. 

The report highlighted improved profitability, strong portfolios, and healthy liquidity within Moroccan banks are signaling the potential growth despite challenging lending conditions.  

Fitch Ratings explained that the increased profitability is resulting from “tax amnesty measures in 2024, which brought back previously undeclared cash into the financial system”. Profitability was also driven by strong trading revenues on fixed-income securities, higher net interest income, and good cost discipline, according to Fitch. 

Fitch’s report indicated that with operating conditions in Morocco being favorable for debt recovery and provision reversals, the country’s banks are well positioned to contribute to funding infrastructure projects planned in Morocco between 2025 and 2030. 

Outlook: 

The healthy state of Morocco’s banks will help reinforce confidence in the country’s business climate and encourage investors to explore opportunities in Morocco. 

The success of the tax amnesty measures to this point is a good example of the state’s encouraging reforms that are consolidating the financial system and reflecting a cooperative, pro-business stance from authorities. 

The increasing profitability of banks will also support the potential expansion of banks to other African countries in the region, which aligns with the Kingdom’s efforts to build solid ties with neighboring states within the Royal Atlantic initiative.  

The prosperity of the banking sector in Morocco could incentivize investment and job creation, potentially promoting the state’s efforts to reduce the 13.2% unemployment rate. 

Explore our services or speak with our team of North Africa-based risk experts.