Prime Highlights-
- Bank of Africa gives investors over 5.1 million bonus shares by moving MAD51.2 million of reserves into share capital.
- Othman Benjelloun’s bank strengthens its capital base after net income rises 10% to MAD2.5 billion in the first half.
Key Facts-
- Investors receive one allocation right for every 43 shares held, with no fresh cash needed.
- Bank of Africa ranks ninth among Africa’s largest banks by Tier 1 capital at $3.84 billion.
Background-
Moroccan lender Bank of Africa, chaired by billionaire Othman Benjelloun, plans to give investors more than 5.1 million bonus shares by converting part of its reserves into share capital.
The Casablanca-listed bank will lift its capital by MAD51.23 million ($5.25 million) with 5,122,834 new shares, each carrying a nominal value of MAD10. Investors endorsed the move during an extraordinary general meeting. Investors will get one allocation right for every 43 shares they own, and since reserves fund the move, nobody has to put in fresh cash.
The allocation rights will trade under the ticker ABOAG, and the new shares will then join trading alongside existing stock. They will earn dividends from the start of the 2026 financial year.
The step adds strength to the bank’s capital as it competes with Morocco’s two largest lenders. African Business ranked Bank of Africa ninth among the continent’s 100 largest banks by Tier 1 capital, at $3.84 billion, up two places.
The bonus issue follows solid results. Net income attributable to shareholders grew 10% to MAD2.5 billion, net interest income gained 7% and fee income rose 10%. The bank also cut its cost of risk by 16% and lifted total assets 5% to MAD460 billion. Its pan-African arm, BOA Holding, grew net banking income 6% to 445 million euros.
Benjelloun has led the bank for more than 30 years. The issue gives him more shares while his percentage stake stays the same.
