A Corporate Citizen. CSR Report 2015 Corporate Social Responsibility

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1 A Corporate Citizen CSR Report 2015 Corporate Social Responsibility

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5 HIS MAJESTY KING MOHAMMED VI, MAY GOD GLORIFY HIM

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7 CONTENTS 2 > 11 GROUP PROFILE CSR AT THE HEART OF STRATEGY AND OPERATIONS THE CORPORATE RESPONSIBILITY INITIATIVE A FULLY-FLEDGED MODEL OF GOVERNANCE ENSURING COMPLIANCE ACTING AS A COMMITTED EMPLOYER 12 > 25 A BANK COMMITTED TO ENVIRONMENTAL RESPECT 26 > 33 THE NATIONAL AND REGIONAL ECONOMIC BOOM 34 > 57 A BANK WITH A FIRM FOOTHOLD IN ITS COMMUNITIES 58 > 67 PERSPECTIVES AND ANNEXES 68 > 71

8 GROUP PROFILE A GROUP FOUNDED ON VALUES OF SOLIDARITY AND RECIPROCITY Made up of the Banque Centrale Populaire (BCP), the Group s central body, Banques Populaires Régionales (BPRs), banks in Europe and Africa, insurance companies, foundations and representations abroad, the Groupe Banque Populaire (GBP) draws its strength from its values of solidarity and reciprocity. With longstanding commitment to the development of crafts and SMEs/SMIs, it has continued to evolve throughout its history, to become a universal financial group providing a range of solutions adapted to the needs of all its customers : private individuals, professionals, and companies of all sizes. It develops its activities around four major axes : - consolidation of acquired positioning ; - socially responsible banking ; - improvement of performances ; - conquest of new territories and external growth. VALUES OF COOPERATION AND RECIPROCITY THE Groupe Banque Populaire S VALUES OF SOLIDARITY, PROXIMITY, CITIZENSHIP AND PERFORMANCE SPRING FROM ITS RECIPROCAL COOPERATIVE MODEL, AFFIRMING ITS IDENTITY, REFLECTING ITS CULTURE AND UPHOLDING ITS VISION. SHARED BY ALL THE GROUP S ENTITIES BANQUE CENTRALE POPULAIRE, BANQUES POPULAIRES RÉGIONALES, ITS NETWORK OF BRANCHES IN MOROCCO AND ABROAD, AND ITS SUBSIDIARIES AND FOUNDATIONS THEY SERVE TO STRENGTHEN COHESION AS THE BASIS FOR THE GROUP S COLLECTIVE COMMITMENT TO THE KINGDOM S ECONOMIC AND SOCIAL DEVELOPMENT. KEY FIGURES The Moroccan banking system s leading savings collector Leading bank for repatriation of savings held by Moroccans residing abroad Over 14,000 employees 48% of whom are women FOUNDATIONS BANQUES POPULAIRES RÉGIONALES branches at 31/12/2015 Fondation Banque Populaire Banque Populaire du Centre Sud New branches opened in 2015 planned for 2016 Fondation Création d Entreprises Fondation Attawfiq Micro-Finance Banque Populaire d El Jadida-Safi Banque Populaire de Fès-Taza Banque Populaire de Laâyoune Banque Populaire de Marrakech-Béni Mellal 5,2 million clients including new in 2015 Banque Populaire de Meknès Banque Populaire de Nador-Al Hoceima Banque Populaire d Oujda Banque Populaire de Rabat-Kénitra Banque Populaire de Tanger-Tétouan 2

9 SHAREHOLDERS A DIVERSIFIED GROUP OF INTERNATIONAL SHAREHOLDERS BPR VARIOUS (*) 27,76 % 51,07 % PROOF OF ITS DETERMINATION TO BRING ITS GOVERNANCE AND CSR PRACTICES IN LINE WITH INTERNATIONAL STANDARDS, IN 2012 THE Groupe Banque Populaire OPENED ITS CAPITAL TO THE INTERNATIONAL FINANCE CORPORATION, A SUBSIDIARY OF THE WORLD BANK, WHICH NOW HOLDS 4.7% OF THE CAPITAL, TO THE TUNE OF 1.8 BILLION MAD, AS WELL AS TO THE BPCE, WHICH HOLDS 4.51% PERSONNEL SFI Group BPCE MCMA 5,98 % 4,70 % 4,51 % 4,37 % 5,98 % of capital held by Group employees at 31/12/2015 (*) VARIOUS including floating stock CRÉDIT POPULAIRE DU MAROC STEERING COMMITTEE BANQUE CENTRALE POPULAIRE Finance company Insurance and assistance Funds and Merchant banks Other OUTSOURCING AND SUBCONTRACTING SPECIALISED ACTIVITIES INTERNATIONAL SUBSIDIARIES BP SHORE GROUP VIVALIS ABI BPMC BP REM MAROC LEASING BABF BPMG BP SHORE BACK-OFFICE DAR ADDAMANE BABN CHAABI BANK CHAABI DOC NET CHAABI LLD BACI AMIFA (MOROCCAN HOLDING CO) PAYMENT CENTER FOR AFRICA MAI BAML AMIFA CI MAROC TRAITEMENT DE TRANSACTIONS (M2T) ATTA MINE CHAABI BANE AMIFA MALI CIB OFFSHORE BASN UPLINE GROUP MÉDIA FINANCE CHAABI CAPITAL INV BANK AL AMAL BATG AA CI IARDT AA CI VIE GTA-C2A IARDT GTA-C2A VIE 3

10 CSR AT THE HEART OF THE GROUP S STRATEGY Founded upon values of reciprocity and solidarity, the Groupe Banque Populaire naturally carries the principles of corporate responsibility in its genes. Consequently, all its strategies and actions result from a pre-eminently socially responsible approach, whether in Morocco itself or the other countries where it is active. In 2011, the Group s corporate responsibility initiative was reinforced by setup of an Environmental and Social Risk Management System (ESRMS), which incorporates environmental and social risks into analyses preceding project financing, along with a universalised CSR policy extending to all our activities. The initiative testifies to our determination to achieve the highest international standards, enabling us to anticipate regulatory developments and meet stakeholders changing expectations. This document is the Groupe Banque Populaire s first report on its CSR initiative. It presents our policies along with concrete actions carried out over the last few years. It demonstrates our firm belief that a Bank s social responsibility is above all based on governance founded on transparency, regulatory compliance, ethics and deontology. It also shows how much the Group is committed to respecting the environment, seeking ways to reduce its own environmental footprint as well as positioning itself as a leading actor in the financing of the energy transition. our main concern is to act as a committed employer, providing them with a day-to-day work environment propitious to their development and ensuring active management of their career paths. We are also convinced that a Bank s social responsibility resides in its role as intermediary and facilitator of the real economy, to the benefit of companies, professionals and private individuals alike. Determined to participate fully in the ongoing development of Moroccan society, the Group is actively engaged in programmes designed to increase availability of banking facilities and support the regionalisation process. Beyond Morocco s borders, the Group is active in sub-saharan Africa, where it participates in the financing of major development projects, so contributing to the continent s financial and economic integration. Finally, the Group has always involved itself in the life of its communities, in particular through the Banque Populaire Foundation, which has come to be acknowledged as a leading actor in education and culture across Morocco. This first CSR report will acquaint you with all the initiatives and programmes implemented by the Group with a view to behaving in an ever more responsible manner with each passing day. Well aware that our employees are our lifeblood and that our success is only made possible by their good offices, Mohamed BENCHAABOUN President, Groupe Banque Populaire 4

11 CSR AT THE HEART OF OUR OPERATIONS Laïdi El Wardi Managing Director, Retail Banking The Groupe Banque Populaire has always made banking inclusion and support for the real economy and small enterprises central to its various missions. These longstanding commitments rely on our ability to meet the challenges with which Africa s retail banks are faced : deploying multiple distribution channels and designing banking products and services for all segments, low-income clients, emerging middle classes and VSMEs alike. Managing Director, Financial, Investment and International Banking Mohamed Karim Mounir Lending support to major projects in Morocco and across the African continent, being an active partner in Africa s economic and financial development, and doing so in full respect of the environment and human concerns is how the Banque Populaire works on behalf of sustainable financing. Often taking on the role of this or that State s leading funding partner, we are also very much involved in the financing of the energy transition, in particular through development of the wind-power sector. Hassan El Basri Managing Director, Risks Group Since 2011, we have been working to implement an efficient tool for incorporation of social and environmental risks into overall analysis of credit risk, the Environmental and Social Risk Management System (ESRMS), enabling us to anticipate our markets and partners increasingly imperative requirements. The banking sector can only properly carry out its vital role as a financer of enterprises and major projects by mastering potential impacts on the planet and its peoples. All of us at the Banque Populaire are aware of our responsibilities and intend to make every effort to assume them to the full. 5

12 THE GROUPE BANQUE POPULAIRE S CORPORATE RESPONSIBILITY INITIATIVE SUPPORTING MOROCCO S STRATEGY OF EMERGENCE The Groupe Banque Populaire has positioned itself as the Kingdom s partner in implementation of the national strategy for emergence, which comprises three focuses : improving citizens living environment, strengthening sustainable management of natural resources, and promoting environmentally respectful economic activities. The Group s strategy and its corporate responsibility initiative are fully in line with the national strategy. THE FINANCIAL SECTOR S ROLES AND RESPONSIBILITIES The banking and financial sector plays an essential role in emerging nations economic, social and societal development. By financing enterprises, it helps make them the main driving force of economic growth, leading to job creation, improvement of incomes, living standards, exports, and so on. In order to play its role as partner to economic development to the full, the Group is concentrating on minimising credit risks and exercising its role as influencer of its borrowers environmental and social performance. THE GROUP S CSR FOCUSES The diagram below shows all the sustainable development issues and themes the Group deems relevant to its activities. BEING A RESPONSIBLE EMPLOYER ACTING FOR THE ENVIRONMENT Work conditions favourable to employees health and self-fulfilment Development of skills and motivating careers Gender diversity in management posts Knowledge transfer to younger generations Remuneration of performance Retention of talents MEETING ALL OUR CLIENTS EXPECTATIONS GOVERNANCE & COMPLIANCE Reductions of the Group s own environmental footprint Education on the environment Financing of renewable energies Environmental and social impact of financing ENSURING SOLIDARITY WITH OUR COMMUNITIES Business ethics Client protection and satisfaction Financial inclusion of regions and disadvantaged communities Support to development Universal access to innovations Product quality and security Responsible product offer Access to education Social action on behalf of disadvantaged communities Cultural patronage and sponsoring Responsibility vis-à-vis suppliers 6

13 THE INITIATIVE IN RESPONSE TO THE ISSUES IN QUESTION The Groupe Banque Populaire s CSR initiative is rooted in each of its original components : its collegial mode of governance, its unswerving commitment to the Kingdom s economic and social development, and its regional banks proximity and cooperative organisation. The Bank draws on this model in order to help universalise access to banking facilities, run its high social-impact Foundations and develop an ethical approach to its clientele, members, suppliers, human capital and other partners, while acting in full respect of the environment. In 2011, the Group formalised its Social and Environmental Responsibility Policy, initially implemented via the Environmental Risk Management System (ERMS) (see pages 32-33). It is based on the following principles : - compliance with national and international regulations and recognised practices and standards ; - setup of environmental and social risk management systems likely to contribute to improving the Group s performances ; - dissemination of the environmental and social policy among employees and other stakeholders via training and awareness-raising activities with a view to making them fully cognisant of their obligations ; - in its in-house operations, commitment to adoption of best practices in environmental management and management of human resources ; - reliance on suppliers that respect environmental and social norms, and taking account of sustainability questions in purchasing in-house goods and services. The Group s CSR Directorate is now attached to its Compliance Division. It draws on a dedicated team at Group level and on a network of contributors and facilitators at Banques Populaires Régionales and subsidiaries. - responsible management of environmental products and services ; 7

14 A FULLY-FLEDGED MODEL OF GOVERNANCE Crédit Populaire du Maroc (CPM) is a Banking Group made up of the Banque Centrale Populaire (BCP) and Banques Populaires Régionales (BPRs). Strictly speaking, it is the Groupe Banque Populaire s banking entity alongside the Group s subsidiaries and foundations. BPRs stand out from the crowd and draw strength from their cooperative model : clients are also members. They accompany, participate in and support their bank s development. CRÉDIT POPULAIRE DU MAROC : COOPERATIVE COLLEGIAL GOVERNANCE The Group s values of reciprocity and solidarity make it an ideal regional development project partner. The CPM s collegial management and the BPRs cooperative model enable local strengths to come to the fore, spurred on by close proximity and exemplary transparency. Representativeness and equity are priority concerns at all levels of governance. The Banque Centrale Populaire is responsible for financial management of the cooperative group It plays a dual role, as the CPM s credit institution and central banking entity. As such, it coordinates the Group s financial policy, oversees refinancing of BPRs and manages their cash surpluses as well as services of common interest on behalf of its various component bodies. With their corporate governance, the 10 Banques Populaires Régionales are at the service of the Kingdom s regions BPRs are organised as cooperative entities with variable capital and their clients are also their members, holding 48% of their capital in the form of ordinary shares, remunerated in accordance with a rate set by the Steering Committee and voted on at Ordinary General Assemblies. Its member clients have a say in their Bank s life and the directions it is taking, via their Supervisory Boards and the various specialised committees emanating from them (audit, risks, etc.), exchanging viewpoints and ruling on the Bank s performances and future. Management of the strategy is entrusted to two central bodies working in synergy : the Directorate, composed of 5 members, is the executive power, making decisions and assuming responsibilities in collegial fashion ; the Supervisory Board, made up of members representatives, sets the Bank s major strategic guidelines, monitors the Directorate s decisions and reports on its findings to all members at Ordinary Assemblies. As a cooperative entity, it is representative of all activity sectors in its region. This form of cooperative governance was introduced in 2000 in order to provide greater transparency. It improves performance and attracts increasing numbers of members every year. THE STEERING COMMITTEE : GUARANTOR OF BCP/BPR DECISIONAL BALANCE The Steering Committee is the CPM s highest authority and as such approves all general strategic guidelines. It also acts as guarantor of the good financial, administrative and technical management of the CPM s component bodies, and defines and monitors compliance with common operational rules. It is made up of five BCP members (administrators appointed by the Board of Directors and representing the BPRs sitting on its board of directors) and five representatives of BPR Supervisory Boards (elected by all the Chairs of the 10 BPRs Supervisory Boards). 87 % average participation rate (5 meetings in 2015) 8

15 THE GROUPE BANQUE POPULAIRE : GOVERNANCE BODIES Three bodies are responsible for the Group s governance, dividing up missions among themselves as follows : THE BCP S BOARD OF DIRECTORS : MANAGEMENT AND IMPLEMENTATION Its 12 members are appointed by the Ordinary General Assembly for a period of six years. Very much involved and highly trained, they carry out their assigned mission to the full, with the aid of three specialised committees in particular : the Audit Committee supervises and assesses implementation of the Bank s in-house control systems as well as conduct of auditing activities. the Risks Committee (set up in December 2014 following the BAM directive on internal control) studies and advises on risks run by the BCP. It monitors compliance with risk management strategy and general policies, and with regulations bearing on risk. the Nomination and Compensation Committee (set up in 2013) is tasked with monitoring the design and good management of the pay system, and deals with proposals for nominations and renewals of members (Board of Directors, the Bank s Senior Management Managing Directors and Assistant Managing Directors). Training administrators A pioneer in the field, the GBP set up five (10-day) training modules in partnership with Rabat International University, covering rules for good governance, finance, strategy and risk management, and involving all the Group s administrators in Morocco and sub-saharan Africa. CSR has featured on the agendas of the Board of Directors meetings since 2011, with adoption of an Environmental and Social Management System (ESMS). Its results, along with those of the overall CSR policy, were presented to the Board of Directors in 2015 and are shared with all the Group s stakeholders in particular via this first Groupe Banque Populaire CSR report. Administrators / members Board of Directors Audit Committee Risks Committee 12 administrators, 2 of whom are independent, and 9 permanent representatives of shareholding entities 3 members, 1 of whom is independent: the Chair 3 administrators (none of them independent) Nominations and Compensation Committee 3 members, 1 of whom is independent Term of office 6 years (legal max.) Term of office linked with administrator s term of office Number of meetings in meetings 4 meetings 4 meetings 3 meetings Assessment of the Board of Directors operation Methods for annual assessment of the BD s operation have not yet been ratified, but should comply with the recommendations contained in Bank Al-Maghrib directive 1/W/2014 i.e. selfor external assessment. 9

16 BPR SUPERVISORY BOARDS AND DIRECTORATES : DEVELOPING LOCAL STRENGTHS AND STRATEGIES CPM includes 10 Banques Populaires Régionales, each of which is subject to a dual form of governance with a Supervisory Board and a Directorate. BPR Supervisory Boards are tasked with management control as well as with taking part in setting the Bank s strategic guidelines in line with the Group s overall strategy and exercising a number of special powers provided for in the Articles of Association. It reviews its observations on the Directorate s report and accounts for the fiscal year, and presents them to the annual Ordinary General Assembly. BPR management is carried out by a Directorate collegially responsible for the Bank s achievements and performances. SHAREHOLDERS GENERAL ASSEMBLIES : HANDING OVER THE FLOOR TO MEMBERS The Banque Centrale Populaire s Ordinary General Assembly and Extraordinary General Assembly were held on 21 May 2015 and 13 October 2015 respectively: most shareholders voted, with participation rates (in % of shares) of 66% and 65% respectively. At BPR level, the Ordinary General Assembly was held on 20 May 2015 and the Extraordinary General Assembly on 8 October 2015: most shareholders voted, with participation rates of 33% and 50% respectively. 10

17 ENSURING COMPLIANCE The full compliance of all Groupe Banque Populaire activities is essential to its ongoing development, actively contributing to improvement of its activities security, maintenance of its image and good name, and good in-house governance. The GBP prioritises regulatory compliance, deontology and ethics, control of governance, combating money laundering and the financing of terrorism, protection of consumers and protection of its stakeholders personal data. ANTICIPATING REGULATORY CHANGES The Group s rapid expansion at regional and international level alike makes regulatory anticipation of and compliance with regulatory changes major axes of development, increasing the security of its management operations and activities. The Groupe Banque Populaire has always ensured its activities compliance with the laws and regulations in force and with best practices through compliance with the regulatory system, assistance, and advice on careers. By way of example, regulatory compliance encompasses compliance with Law bearing on consumer protection, Law bearing on the protection of private individuals with regard to processing of personal data, and Law on freedom of pricing and competition. In addition, the Group s deontological code, along with the various complementary professional deontological codes, provides for protection of clients and employees private lives. DEONTOLOGY AND ETHICS The Group s deontological and ethical values are the focus of awareness-raising and training among employees throughout the year, including in its African subsidiaries. The Deontological and Ethical Code provides the basis for the various sectoral deontological codes (trading rooms, private banking, merchant banking, etc.). Apart from the intrinsic fundamental values contained in the Code (integrity, loyalty, professionalism, quality, transparency and solidarity), preserving professional secrets, combating corruption, combating sexual harassment, and preventing conflicts of interest and insider trading are all part and parcel of an operating system control of which is carried out by entities promoting compliance within all Group companies. An ethics committee advises on any ethical and deontological questions put to it by CPM bodies and Group subsidiaries and foundations, and sets the Group s deontological strategy. COMBATING MONEY LAUNDERING AND THE FINANCING OF TERRORISM (LAB/FT) The LAB/FT scheme is central to security and control. It draws on the recommendations of the Financial Actions Group (GAFI) and Basel Committee standards ( Know Your Customer ) and keeps pace with ongoing changes in national and international laws and standards. Main changes and actions in 2015 bore on : strengthening and updating the Group s in-house reference system encompassing the LAB/FT activity (LAB policy, circulars and procedures, etc.) ; continued development of the LAB/FT information system, with acquisition of new solutions (Filtering, Profiling, dematerialisation of exchanges with the UTRF, etc.) ; lending support to departments responsible for LAB/FT activities within BPRs, subsidiaries and Foundations ; helping the Group s various entities achieve their development plans in compliance with the rules of financial security ; promotion of the culture of financial security within the Group through training and awareness-raising actions. 11

18 ACTING AS A COMMITTED EMPLOYER

19 2015 saw a woman, Asma Lebbar, appointed to head the Human Capital Division a first in the Groupe Banque Populaire s history saw Banques Populaires Régionales and sub-saharan banks taking part in the Group Committee s half-yearly meeting via videoconference saw the launch of the project for total overhaul of the HR Information System around a centralised data centre in Casablanca, to ensure more efficient and secure operations to the benefit of all personnel saw startup of operations stemming from the Elan 2020 strategic plan, including two projects in the HR field : integrated talent management and company culture saw the Banque Populaire obtaining the definitive Tobacco-free Company label

20 THE GROUP S HUMAN PROFILE At 31 December 2015, the Groupe Banque Populaire numbered over 14,000 employees, 48% of them women. over 14,000 GBP employees Division of workforce by status (CPM) Paid strength at Executives (incl. managers) (1 738) (1 826) (1 659) Officers Employees Total The management-to-staff ratio remained stable over the three years. 8,937 CPM employees, 70 % of them in managerial positions Women 8 % 22 % 9 % % Average CPM workforce age is 37. Age Pyramid 2015 (CPM) ans Man % 6 % % 45 6 % 8 % % 25 5 % %

21 Personnel under 30 years of age account for 32% of the workforce, the majority holding positions at front office level (branches and business centres), where the rate is to the tune of 88%. 32 % of the workforce is under 30 Women Seniority Pyramid 2015 (CPM) years Men 10 % % 4 % 16 5 % % 8 15 % % % 7 % % 6 % % Average seniority is 12 years. 68 % of personnel have over 5 years seniority 12 years average seniority 15

22 DIVERSITY When recruiting and all career long, the Groupe Banque Populaire accords major importance to diversity in all its forms, whether it s a question of gender diversity or of employing young people and older applicants. The Group prioritises the integration and self-fulfilment of all its employees, in an environment conducive to progress and performance. GENDER DIVERSITY : RESULTS IN PROGRESS Women account for over half of the Bank s current recruitments and 48% of its present workforce. Although their careers tend to develop less quickly than their male counterparts, owing to different professional life/family life balances, they are being appointed to key positions with increasing frequency. There are now four women at BPR Directorates or on their Supervisory Boards, five women division directors and members of the Executive Committee, and several department supervisors and directors. Percentage of women in the workforce (CPM) % of women Executives (incl. managers) 44% (11%) Officers 57% Employees 54% 48 % of the workforce are women 65% of whom are in executive positions and 11% managers The Month Of March : The Group s Women In The Spotlight IN 2015, EACH OF THE Groupe Banque Populaire S 6,700 WOMEN WAS PRESENTED WITH A NECKLACE ADORNED WITH A BEAUTIFULLY DESIGNED PENDANT. AS USUAL, CELEBRATIONS WERE HELD AT THE VARIOUS BPRS ACROSS THE KINGDOM. THE GIFTS WERE ACCOMPANIED BY A BEST WISHES MESSAGE FROM GROUP PRESIDENT MOHAMED BENCHAABOUN. 16

23 A REINFORCED RECRUITMENT POLICY There has been a 7% increase in the CPM workforce over the last three years. The recruitment policy implemented focused on ensuring a stronger presence at the various employment-opportunity events (exhibitions, fairs, forums, etc.) organised at national and international level, aided by close relations with the Grandes Écoles. The policy has added strength to one of the pillars of Plan Élan 2020, seeking to provide the Group with the expertise required to carry out its strategic plan successfully. Action also focused on scouting, identification, recruitment and support of sub-saharan skills for Banque Atlantique network subsidiaries. 88 expatriate employees enable dissemination of the values, culture, methods and procedures originating in Morocco, where the Group s geographical roots lie. Wherever it locates, the Group puts local strengths to good use. Since 2013, it has been recruiting graduates from Moroccan Grandes Écoles who come from the various sub-saharan African countries where it is active. After spending one or two years working in Morocco, such recruits are in a position to disseminate the knowhow they have acquired across their native countries, and adapt it to local specificities. Evolution of CPM recruitments by type of contract: 2013, 2014 & Permanent Contract (CDI) ANAPEC contract TOTAL The great majority of new staff are recruited under permanent contracts, with almost 99% on CDIs and ANAPEC contracts (all ANAPEC contracts are converted into CPIs when they come to an end).the significant upswing in recruitments after a falloff in 2013 should also be noted ; it was largely due to the opening of 74 new branches in 2014 and 70 in ACCOMPANIMENT AND INTEGRATION OF YOUNG PEOPLE In 2015, newly recruited staff under 25 years of age accounted for 60% of all recruitments. The younger generations represent the Group s future and their involvement in its growth has become a major priority. As regards integration, special programmes designed for young recruits have been introduced, focusing on aspects of personal development and provision of basic professional training. 17

24 The BCP s latest recruits received by the Human Resources Department New recruits were taken to the National Training Centre (CNF) to meet the Banque Populaire s top Human Capital professionals. Among other things, the meeting was designed to acquaint its young participants with the Group s integration policy, training strategy, career management, and social benefits. The event bore witness to the concrete implementation of the new process of integration within the Group. CAPITALISING ON SENIOR STAFF S EXPERIENCE With one of the highest seniority rates in the sector, the GBP keeps its employees by providing them with career paths in which knowledge and competences accumulate and complement each other: an individual employee s career path usually includes more than one professional speciality. In the future, the Group hopes to capitalise on its senior staff s knowledge, which constitutes nothing less than its collective memory, by inviting them to train new teams before they retire. A SEMINAR FOR FUTURE RETIREES THE HUMAN RESOURCES DEPARTMENT ORGANISED A SEMINAR FOR STAFF SET TO RETIRE BY THE 36 EMPLOYEES WHO ATTENDED WERE TREATED TO PRESENTATIONS OF THE SERVICES PROVIDED BY THE CNSS (NATIONAL SOCIAL SECURITY FUND) AND CIMR (MOROCCAN INTERPROFESSIONAL RETIREMENT FUND). Departures (CPM) 370 people left the Bank in 2015, 196 of whom were due to retire. The number of departures excluding retirees represents 2.2% of the total workforce, attesting to highly satisfactory employment stability. 53 % of departures were due to retirement Departures other than retirees represented 2.2% of the workforce 196 Employees with an average of 32 years seniority retired in

25 DEVELOPING SKILLS The Plan Élan 2020 roadmap provides for extension of the Group s network of branches, an ambition that puts the GBP s human capital at the heart of its development strategy. Well aware of the importance of integrating and accompanying its young recruits, as well as the need for diversification and consolidation of expertise, the Group is committed to training its employees, implementing targeted programmes, meeting professional requirements, and adopting an innovative approach to diversification of training methods and aids. CPM provides for major annual investment in training. Almost 40,600 workdays of training were completed in Training in figures (2015) workdays of training 58 % of courses focus on commercial aspects +8,3 % evolution in the training budget (compared with 2012) CAREER-LONG PROFESSIONAL ACCOMPANIMENT FROM RECRUITMENT ONWARDS Crédit Populaire du Maroc has introduced three major types of training courses. They are addressed both to employees with several years experience and new arrivals, with a view to facilitating their integration and assimilation of best practices. Basic banking & professional courses : generic courses and professionalising courses (Audit, Comex, Accounting, etc.) designed to improve the professional skills of participants whose career paths are already set employees attended 53 generic course sessions 70 employees attended specialised professional training courses Refresher courses and courses designed to accompany evolutions in professions and processes, with the aim of maintaining required levels of competence attendances and workdays for refresher courses Crosscutting courses focusing on development of managerial skills and personal development attendances and 1900 workdays for development courses 19

26 A POOL OF TRAINERS : THE SPEARHEAD OF THE IN-HOUSE TRAINING INITIATIVE THE BANK PREFERS TO USE IN-HOUSE SECTOR-ACTIVITY EXPERTS TO FACILITATE BANKING AND REFRESHER TRAINING SESSIONS. OUR IN-HOUSE TRAINERS ARE PROVIDED WITH SUPPORT IN THE FORM OF PROGRAMMES DESIGNED TO DEVELOP COURSE FACILITATION SKILLS AND DESIGN OF TEACHING AIDS ADAPTED TO ATTENDEES ACQUIRED EXPERIENCE. IN 2015, 50 PARTICIPANTS ATTENDED 160 WORKING HOURS OF TEACHER TRAINING. Qualifying and certifying training courses as springboards to success Shared banking courses leading to qualification of participants are 100% financed by the Bank, for employees fulfilling eligibility conditions. 300 employees benefit from shared banking courses every year In addition, qualifying courses (Master s, MBA, and others) are dispensed as required by developments in and requirements of employees areas of activity or career paths. Complementing this offer, certifying programmes in a variety of fields are also open to personnel. Forty or more employees received training in project management in 2014 in preparation for the Project Management Institute s PMP certification, and 75 employees have enrolled for In addition, almost 100 employees have followed or are following the ESSEC certifying training course, and finally, 10 auditors are currently preparing for Certified Internal Auditor (CIA) certification. Constant innovation in dissemination systems As part of the master plan for training, the Bank has become increasingly committed to diversification of ways and means of disseminating training. Its determination in this area is evidenced by the setup of new channels: - integration of new technologies into the dissemination system: use of video training and elearning ; - setup of Open Access courses making it possible for employees who so wish to follow training modules outside working hours ; - integration of new ways of learning based on images and video capsules. Inter-Group synergy Employees in the Group s various subsidiaries have a choice of special skills development programmes designed for new recruits and more experienced staff alike. Such programmes are dispensed at subsidiaries in Morocco and sub-saharan Africa alike, with pedagogical content taking full account of local specificities. Business-activity experts are made available to facilitate them. 20

27 EFFECTIVE TOOLS FOR BETTER CAREER MANAGEMENT A WORD FROM ASMA LEBBAR, DIRECTOR OF THE HUMAN CAPITAL DEVELOPMENT DIVISION In the context of Plan Élan 2020, we aim to start on a new cycle of growth. And that won t be possible without all-round mobilisation and sustained development of all our competences. The Banque Populaire is currently restructuring its Employment and Expertise Plan (EEP / GPEC) with a view to making it more accessible, in other words more intelligible, practical and motivating, and fully adapted to our employees expectations and needs. Main focuses for 2015/2016 include involving young people by giving them a clearer idea of their development opportunities, detecting promising potential and ensuring it is given a chance to blossom, and providing special support for the commercial branch (the network). And it s here that the EEP should really come into its own, with introduction of key measures that we at Human Capital are the authors and driving forces of. Encouraging career development and mobility. In order to this, better-defined job descriptions had to be drawn up and development plans introduced that enabled staff to identify and request the training required for mobility to other posts. We also plan to consolidate the inhouse Mobility Grant: it has existed since the 1990s and received 208 candidacy applications in 2015 for 59 job vacancies, 36 of which were filled as a result. Supporting promotion through performance assessment. This is a matter of measuring performances via a new assessment system based on achievement of collective and individual goals, and rewarding the best through career development opportunities and/or increases in salary. Such objectives, formalised, quantified and shared with employees, foster a spirit of solidarity, help increase employees awareness of their progress and where they stand at any given time while continuing to respect colleagues, the team as a whole, and the rules in force. Division of branches and business centres into three levels (A, B, and C) based on amount of turnover has made awareness of advances in career paths more immediate and palpable. Detecting young management staff with high potential. The Group has introduced a succession plan and talent detection now plays a major role in career management plans and mobility. In-house mobility and promotion are other tools allying employee expectations and the organisation s needs. 21

28 SALARIES AND SOCIAL ADVANTAGES 2014 and 2015 saw a variety of developments, including setup of the Salary Committee, standardisation of remuneration elements for new recruits depending on study levels and qualifications, improvement of the salary grid and introduction of variable compensation depending on performance. REMUNERATION Salaries evolve in line with employees performance and seniority. In the event of nomination, there may be added compensation connected with the new position concerned. In addition, increases may be accorded to all personnel over and above bonuses rewarding performance. In general terms, bonuses share in the wage bill increased by 0.5 points between 2013 and the CPM s Supplementary Provident Scheme. The Group wished to go further and provide a yet wider spectrum of advantages : - Children. Help with financing studies (annual allowance for younger children and special aid for higher education in Morocco or abroad), advantageous conditions for holidays (holiday centres in Agadir, Marrakech, M dieq, Ifrane, Saidia and Bouznika, and holiday camps for children from 8 to 13 years old of employees and Marocains du Monde (MDM) clients. - Health. Full coverage of serious illnesses, a death support fund, very advantageous terms for subscription to the Group s private health insurance subsidiary (Mutuelle de la Banque Populaire) providing Share of bonuses in the wage bill ,7 % 10 % 10,2 % Profit-sharing by employee shareholders: In 2008, the Groupe Banque Populaire began opening its capital to its employees. In 2015, for the third year running, eligible staff benefited from an increase in reserved capital, bringing employees share in BCP capital up to 5.98%. The same year and for the second time, CPM staff benefited from dividends stemming from their subscription to BPR members shares in These operations aimed to : - Strengthen the culture of membership within a cooperative Group ; - Associate staff with the BPRs growth and results ; - Consolidate the sense of belonging to the Groupe Banque Populaire. supplementary health insurance up to 1 million MAD per person, spouses and children. - Other. The pilgrimage to Mecca, paid by the Group for a number of employees aged 45 and over. Sports and cultural centres are available to employees throughout the Kingdom. SOCIAL ADVANTAGES As its employees wellbeing is one of its major concerns, the GBP has developed a full range of social advantages designed to accompany them during the successive stages of their lives. In addition to compulsory subscription to the Caisse Nationale de Sécurité Sociale (CNSS) and Caisse Interprofessionnelle Marocaine de Retraite (CIMR), the CPM s staff regulations provide for further conditions and advantages, including their own private health insurance, complementary health insurance, death insurance and As regards the budget, 5% of the Bank s net income is devotes to social works (aside from healthcare, provident schemes and retirements), with schooling expenses allowances, financial help at Aid Al Adha and sports and cultural actions at the top of the list. The rest of the budget is allocated to sponsorship of collective restoration, holiday camps, the pilgrimage and other aids. 22

29 Le Groupe : La Banque Populaire signe trois conventions en Chine p. 6 p. 12 Flash Info : Relance de la campagne institutionnelle «Je suis Populaire» ème N trimestre 2014 Zoom : Chaabi LLD : Une filiale dynamique dans un marché en pleine croissance p. 34 Le Groupe : Résultats semestriels : le Groupe Banque Populaire confirme sa bonne santé p. 6 p. 14 Flash Info : Changement à la tête de la BP Rabat-Kénitra N ème trimestre 2014 Zoom : La Banque Populaire commémore la Journée Nationale du migrant p. 34 La Banque Populaire : meilleure banque de détail du continent africain Chaabi Bank réorganise son réseau en France p. 7 p. 10 p. 36 N ème trimestre 2013 Zoom : Fondation Banque Populaire, un acteur socioculturel de référence Le Groupe : La Banque Populaire élue Meilleure Banque d Afrique du Nord p. 7 p. 15 Flash Info : Banque Populaire - Proparco : convention pour une ligne de crédit N ème trimestre 2014 Zoom : ICF Al Wassit : la bourse à la portée du grand public p. 42 Le Groupe : Le Groupe BP signe plusieurs conventions de partenariats en Afrique subsaharienne p. 10 p. 14 Flash Info : Changement à la tête de la Fondation Attawfiq Micro-Finance N er trimestre 2014 Zoom : MAI, une filiale stratégique et dynamique du Groupe Banque Populaire p. 44 Le Groupe : Réunion de l état-major de la CIBP à Fès p. 10 p. 36 Socio-culturel : Les colonies de vacances BP fêtent leurs 40 ans N ème & 4 ème trimestre 2013 Zoom : Maroc Leasing, un atout majeur pour le Groupe Banque Populaire p. 42 COMPANY CULTURE SOCIAL DIALOGUE Three unions were represented at the most recent elections of CPM staff representatives on 3 June 2015, with 73% for CDT (Confédération Démocratique du Travail), 16% for SAS (Sans Appartenance Syndicale) and 11% for UMT (Union Marocaine du Travail). In 2014, discussions led to introduction of a bonus for 40 years of seniority at the CPM as well as bonuses rewarding 20, 25 and 30 years of seniority. Further discussions in 2015 resulted in the signature of a Memorandum of Understanding in IN-HOUSE COMMUNICATION Group life is a matter for all our staff. Motivating and uniting our community of employees around their concerns, progress and achievements is essential. A whole range of resources and supports is devoted to doing so, including the in-house quarterly magazine BP News, GBP Online information flashes (a daily ), the Tawassol intranet, in-house posting, and the Info Presse press review (a daily relayed by intranet). The Groupe Banque Populaire s values The Groupe Banque Populaire s mutualist roots have nourished a system of strong values anchored in its employees behaviour each and every day. The Group s entities subscribe to them with pride and bear witness to them on a daily basis. Solidarity. Rooted in the Group s history and constituting one of its fundamental values, solidarity is expressed through the missions assigned to the GBP: providing support for the governments major projects and initiatives, universalising access to banking facilities, combating banking and financial exclusion, and maintaining ties between Moroccans residents abroad and their families in Morocco. The support fund reflects the financial solidarity among the various Banques Régionales. It is also expressed though its employees and Foundations commitment to a wide range of actions and a range of sharing schemes with high social value. Proximity. A legacy of the local mutualist model, it shortens reporting lines, simplifies exchanges, and brings both management and staff and advisors and clients closer together: a value that has become an acknowledge strength throughout the network Over 1,400 branches embody this close-knittedness and local strength. The Group s regional structure, the density of its network and its well-balanced presence across the Kingdom have enabled it to stay in touch with local realities and specificities and contribute to mobilisation of savings and their use in the regions in which they are collected, as well as to promotion of banking activities. Citizenship. The Groupe Banque Populaire is committed to an overall sustainable development initiative. Its corporate citizenship is expressed through two Foundations: Fondation Banque Populaire and Attawfiq Microfinance. The former promotes culture and education and encourages the entrepreneurial spirit in its local clientele and Marocains Du Monde alike, while the latter contributes to banking and financial inclusion by supporting microentrepreneurs. And finally, Performance. Thanks to its commitments to its clients and partners, the Groupe Banque Populaire ensures promotion of the culture of efficiency, professionalism, client satisfaction and innovation through regular investment in optimising and rationalising the ways it operates and in improving its individual and collective operational effectiveness. 23

30 HEALTH AND WELLBEING AT WORK Health, safety and wellbeing at work are subjects on which the GBP has always taken a proactive stance going well beyond regulatory standards The Group s various occupational medicine facilities are in full compliance with current legislation. Rigorous application of Moroccan Labour Law s provisions bearing on health in the workplace is a fundamental and inalienable rule. PREVENTION OF WORK ACCIDENTS Although risk levels are low in the banking sector as far as work accidents are concerned, the GBP has taken good care to set up a full range of equipment and schemes to ensure employees and service-providers safety, including: - Sophisticated technological methods and equipment for supervision and monitoring in all areas of safety: fire detection, intruder alarm, access control, video protection, intervention upon alarm, etc. ; - close proximity to emergency authorities and services ; - regular awareness-raising campaigns targeting employees ; - a Business Continuity Plan (BCP) drawn up and tested with all service-providers. 1 % Work accident frequency rate 1 0,2 % Work accident severity rate 2 ACTIVE DISEASE PREVENTION SINCE 1997 In 2015, it concerned : - screening for cardiovascular diseases for employees 40 years of age and above (39% of staff are over 40), prostate cancer for men of 50 and over, and breast and cervix cancer for women ; - the Banque Populaire Tobacco-free Company initiative (since 2009) with the Lalla Salma Foundation for Cancer Prevention and Treatment ; The project combats nicotine addiction: prevention (in particular among young people), help with giving up smoking, combating passive smoking, etc. The Banque Populaire was awarded the Label d Or for five years running, starting in 2011, to become an official Tobacco-free Company in 2015 ; - Flu vaccination is the subject of an annual communication campaign. Immunisation coverage rates among Group employees stand between 50 and 60% as against barely 2% at national level ; flu vaccines in Employees quit smoking since startup of the Tobacco-free Company programme 1 Number of accidents with lost time over or equal to one day per million hours worked. 2 Number of days off work per thousand hours worked. 24

31 - blood donations are encouraged every year with regional Blood Donor Centres. 33th BCP blood donation campaign DH/employee invested in preventive medicine EVERYONE CANS SAVE LIVES IN 2004, IN ADDITION TO THE BCP S OCCUPATIONAL MEDICINE DEPARTMENT (SEVEN PEOPLE), WHICH COORDINATES THE CPM S 25 DOCTORS AND NURSES, THE GROUP STARTED TRAINING EMERGENCY WORKERS (IN COLLABORATION WITH THE MOROCCAN RED CRESCENT) AND FIRST-AID TEAMS ON ALL ITS SITES. HEALTH COVER : THE GROUP S PROVIDENT SOCIETY As the wellbeing of its active and inactive staff and members of their families is one of its priority concerns, the Groupe Banque Populaire has its own provident society with two schemes on offer : - a supplementary retirement scheme, which was introduced on 1 May 1987 ; The MPBP in figures (2015) beneficiaries - a basic scheme covering sickness and maternity to a maximum of 35,000 dirhams per beneficiary, which was introduced on 1 July 1988 ; Supplementary health insurance to a maximum of 1 million dirhams per beneficiary, takes over above and beyond the 35,000 MAD covered by the MPBP. The scheme is rounded off by social aid financed by the social fund and covering five families of families of serious diseases. 10,5% 99 % of the taxable base (1/3 employee, 2/3 employer) is devoted to MPBP membership of claims reimbursed 15 days for reimbursement 25

32 A BANK COMMITTED TO THE ENVIRONMENT

33 In 2015, a pilot project on remote branch management was launched. In 2015, Data Centres electricity and air-conditioning systems were optimised. In late 2015, the FBP was rewarded on several occasions by the Mohammed VI Foundation for the Environment for its action on behalf of beach ecosystems. In 2015, the Environmental and Social Risk Management System (ESRMS) was implemented at the Banque Centrale Populaire.

34 REDUCING OUR OWN ENVIRONMENTAL FOOTPRINT Continuing collective efforts and the launch of new projects are enabling the Group to progressively control its environmental impacts. Such efforts are concentrated on three major areas. OPTIMISATION OF FOOTPRINTS OF BUILDINGS AND FURNITURE Environmental criteria at all stages of a building s life The Group has been combating energy wastage in its buildings for many years now. Centralised technical management of major sites enables automatic control of lighting and adaptation of air-conditioning. Since 2010, best practices have been implemented for all new construction and branch renovation with a view to integrating energy efficiency criteria into choice of air-conditioning and lighting equipment. Results have been positive : the new agencies built in 2015 consume 30% less energy than older ones. New contracts with maintenance and cleaning service-providers incorporate such environment-linked criteria as choice of ecological refrigerant gas, systematic use of LED bulbs as replacements, biodegradability of sanitary products and daily monitoring of water and electricity consumption. Rigorous selection of furniture ABDELLAH SAFIR, MULTITECHNICAL MAINTENANCE MANAGER, TAKES THE FLOOR A RANGE OF MEASURES HAS BEEN TAKEN WITH A VIEW TO PROGRESSIVELY IMPROVING BCP SITES AND BRANCHES ENERGY EFFICIENCY, INCLUDING : * COMPLIANCE WITH THE DIRECTIVES OF THE ISO ENERGY PERFORMANCE MANAGEMENT STANDARD ; * LAUNCH IN 2014 OF A PROJECT FOR REMOTE MANAGEMENT OF TECHNICAL EQUIPMENT AT A PILOT BRANCH ; * AWARENESS-RAISING MISSIONS CARRIED OUT IN 2013 AT A SAMPLE 23 BRANCHES IN CASABLANCA, LEADING TO A 6 TO 12% REDUCTION IN ENERGY CONSUMPTION. WE ARE COMMITTED TO UNIVERSALIZATION OF SOLAR PANELS FOR PRODUCTION OF DOMESTIC HOT WATER AT ALL HOLIDAY CENTRES, AND ARE ALSO WORKING ON INCREASING AWARENESS- RAISING ON ECO-HABITS AMONG THEIR USERS. WE VE SET OURSELVES AN AMBITIOUS GOAL : WE AIM TO REDUCE ELECTRICITY CONSUMPTION AT MAJOR SITES BY 8 TO 10% BY THE END OF 2017 AND HOPE TO OBTAIN ISO CERTIFICATION Calls for tender for the purchase of furniture insist on standards respecting ergonomy and environment. Manufacturers must supply certificates and documents on the life cycles of their products, all of which must have the NF Environment label. MORE ENERGY-EFFICIENT IT EQUIPMENT How do you carry out a major activity using less energy? That s the challenge the Group has to meet. And three areas have become the focus of special efforts in order to do so : - Data Centres : their air-conditioning and electricity systems have been optimised, reducing consumption by 6 or 7%, and a project is underway for setup of a more economical newgeneration Data Centre ; - IT equipment : constructors selected, all top international names, are committed to a green innovation initiative. The Mainframe platform was replaced in 2014 to provide a better power/ energy ratio ; - Virtualisation : 660 servers have now been virtualised via a private Cloud for the whole of the Group. With optimisation of spaces and heat emission and pooled maintenance, the GBP is getting very positive results. 95 % of servers virtualised 28

35 DEMATERIALISATION TO SAVE PAPER Many in-house documents have been digitised (including payslips, daybooks and reports). As regards our clientele, non-urgent mail is grouped together and posted every five days, while documents for clients abroad are printed onsite to cut down on transport. A more ambitious project is currently being finalised bearing on virtualisation of credit report processing. Almost 100 million sheets saved between 2006 and 2015 THE GBP : PIONEER AND LEADER* IN THE REALM OF REMOTE BANKING The gbp is several steps ahead of the crowd in its implementation of electronic administration systems, in particular as regards the goals of the egov programme. Chaabi net (free online management, from entry-level packs upwards) has some 630,000 subscribers, sms chaabi mobile (banking information by sms) 1.6 Million subscribers, the mobile banking application 20,000 subscribers, and the electronic estatement service 600,000 subscribers. With universalisation underway, a single platform for exchanges between the bank and its company clients covers a wide range of functions. In continual development over the past three years, it has provided an esignature service since may * in volume clients have signed up for estatements (compared with 2013) Priority given to recycling Paper is recovered and recycled by an external service-provider contractually obliged to ensure that sorting instructions are complied with and make sure that waste is disposed of in dedicated centres in compliance with accepted standards of hygiene, environmental protection and confidentiality. Computers at the end of their lives are taken over by the Al Jisr association, which repairs them or takes them apart and sends the resulting raw materials to Managem, the Kingdom s leading mining company. BPRs will soon be involved in a similar initiative. REDUCING FUEL CONSUMPTION The main focus here is optimisation of CIT journeys, which were reduced by 30% between end 2013 and 2015 (on a like-for-like basis). As for professional travel, the 13 new videoconferencing systems cut down on business trips, in particularly by employees at our African subsidiaries. For example, press conferences announcing results and Group Committee meetings are followed remotely right across Morocco and at our sub-saharan subsidiaries. 100 % of meeting rooms with videoconference equipment 29

36 A WORD FROM ABDELLATIF ZAKHBAT : THE BANQUE POPULAIRE FOUNDATION S ENVIRONMENTAL ACTIONS Respect for the environment is a value that has always set the FBP s actions apart. Among other things, it is expressed by committed action in favour of education on preservation of the environment through the national Clean Beaches project and the Eco-School programme. Abdellatif Zakhbat, Secretary General of the Fondation Banque Populaire and the Fondation Création d Entreprises, recaps its commitments. The Clean Beaches project was launched in 2001 : what results have you obtained after 15 years? The FBP has been a partner of the Mohammed VI Foundation for the Environment since 2001, taking responsibility for the upgrading of four seaside sites. The work carried out and investments made have transformed their respective ecosystems, enabling us to hoist the internationally renowned Blue Flag on three beaches. An eco - label attesting to the quality of bathing waters, investments in compliance with international standards, and the quality of awareness-raising, educational and environmental preservation actions carried out by beach sponsors. By the end of 2015, the Banque Populaire Foundation had amassed a whole collection of trophies, the latest of which, the Lalla Hasnaa Sustainable Coastline Trophy, rewarded its work on Haouzia beach, where a composting station was set up with a view to introducing summer visitors to waste sorting, composting of organic waste and the benefits of the soil-enriching agents obtained thereby. These latter enabled fertilisation of soils in areas and gardens neighbouring the beach. Let s talk about Eco-Schools : what exactly are they? Developed under the patronage of the Foundation for Environmental Education (FEE) in over 31 countries, the Eco - School programme was launched in Morocco by the Mohammed VI Foundation for the Protection of the Environment. As members of the programme, the Banque Populaire Foundation s two schools prioritise ecological issues : used oil is recycled into soap through saponification, used tyres are recycled to create decorative items, rainwater is collected, gardeningand upkeep of gardens is a subject in its own right, pupils are made aware of the water cycle, and so on there is an ongoing relationship with nature. Such practices have led to the two schools being awarded the Green Label in Along the same lines, the Agadir school made a name for itself on the fringes of the 7th World Environmental Education Congress (WEEC) with its EcoPolis project : a model of an ecological city harmoniously integrating all human activities. Designed by the pupils, the model won the school the regional Eco- Citizenship Prize. In October 2014, the Tangier school was honoured by a visit from the German Minister of Economic Cooperation in the context of the Eco-School programme. And tomorrow? The projected merger with the Création d Entreprises Foundation augurs well for innovative entrepreneurial projects bearing on the environment. 30

37 FINANCING THE ENERGY TRANSITION Reducing Morocco s energy dependence is of key national importance, in order to minimise exposure to the volatility of world fuel prices and better control environmental impacts. Between 2002 and end 2014, Morocco reduced its energy dependence from 96.8% to 94.6%. Continuation of such reduction will largely depend on renewable energies, with the goal of 52% of installed power in This ambitious objective is supported by such partners as the Banque Populaire, which, with over 10 billion MAD of commitments in the energy sector, takes an active part in financing major projects and in sector investment. FINANCING RENEWABLE ENERGIES Of all the large-scale projects the Banque Populaire s Banque Corporate et Investment Banking (BCIB) is involved in, wind power has the greatest development potential. The BCIB participated in the financing of the Tarfaya wind farm as well as those developed by Morocco s wind-power companies : Foum El Oued in the south, Haouma in the north, and Akhfennir (at which an extension project implemented in 2015 increased power from 200 MW to 300 MW for a total cost of 570 million MAD). A financing project managed by various consortiums is also underway, bearing on five wind farms (850 MW of power in all), via an ONEE call for tenders. 10 billion in energy commitments including 4 billion for financing wind farms MINIMISING THE IMPACT OF ENERGY PRODUCTION PROJECTS USING FOSSIL FUELS Filtration of emissions, solid and liquid waste management, rigorous reporting requirements are high and areas for vigilance many during financing of fossil energies, projects classified as category A by the ESRMS (see below). Extension of the Jorf Lasfar Energy Company 5&6 coal-fired power plant (owned by TAQA Morocco), 40% financed by the BCP for a total of 1.6 billion dollars over 16 years, is an illustration of the level of excellence sought by the Group. Treatment of liquid waste and fumes (over 200 million dollars invested), continuous rigorous monitoring of chimney emissions, filtration of particulate emissions, ash landfills and closed-cycle water, air and waste management are just a few of the many exemplary measures and innovations implemented. ENERGY TRANSITION : THE BP AND THE SIE JOIN FORCES On 4 november 2014, the Banque Centrale Populaire and the Societe d Investissements Énergetiques (sie) signed a partnership convention aiming to facilitate the energy transition and accompaniment of morocco s energy sector. It provides for adapted financing solutions, support for vsmes and encouragement of large companies to act as driving forces. 31

38 FINANCING OF PROJECTS IN LINE WITH ENVIRONMENTAL AND SOCIAL REQUIREMENTS Tools, reference systems and standards have been introduced over the past few years designed to encourage the banking sector to assess, measure and reduce the impacts and environmental, social and societal risks of its activities and project financing. Such safeguards are essential to enabling financial institutions to properly and impartially carry out their vital role as enterprise financers, in particular in emerging markets, and driving forces of economic growth. The notion of sustainable financing has been brought to bear in order to ensure more meaningful investment with better controlled risks. 32 ALL THE GROUP S FINANCING ACTIVITIES FILTERED THROUGH THE ESRMS The Environmental and Social Risk Management System (ESRMS) is integrated into the overall risk assessment procedure before loans are granted to companies as well as during the monitoring of such loans. Consequently, each stage must take full account of projects environmental and social impacts and related risks. This continuous progress initiative stems directly from the Group s values and DNA and ensures security of activities, promotion of healthier development and more favourable fundraising conditions as well as meeting the expectations of partners and markets with strict requirements in these fields (financing partnership with AFD subsidiary Proparco and the IFC s acquisition of shares in the Banque Centrale Populaire). The ESRMS enables the Group to keep pace with international practices (IFC standards) while anticipating future changes in national regulations. Initiated in 2011, the operational launch of the ESRMS at BCP level took place in early 2014 and is set to be extended to Banques Populaires Régionales early in EXTENSION OF THE ESRMS TO MOROCCAN AND AFRICAN SUBSIDIARIES The ESRMS has been implemented at the Group s financial subsidiaries since 2014, taking full account of each subsidiary s specificities. Subsidiaries implementing the ESRMS at end 2015 are as follows : Moroccan subsidiaries : CIB (Chaabi International Bank Offshore) ; Maroc Leasing ; Chaabi LLD ; Upline Alternative Investments. African subsidiaries : ABI Group and its 7 subsidiaries (Ivory Coast, Senegal, Benin, Mali, Burkina Faso, Niger and Togo) ; Banque Populaire Maroco Central African Republic ; Banque Populaire Maroco Guinea. A RIGOROUS 4-STAGE PROCEDURE 1. selection : exclusion list and classification An IFC exclusion list is applied without exception to sensitive sectors and activities and those whose financing is prohibited. It excludes any financing of projects deemed unethical in accordance with the following criteria : illegal activities, arms, alcohol, games of chance & casinos, radioactive materials, goods containing asbestos fibre, certain deep-sea fishing activities, activities in primary tropical rainforests, wood or forestry products not coming from sustainably managed forests, and activities using forced or child labour. Classification into four categories according to type of impact generated by the project to be financed (not its cost) : Cat.A (significant impact), Cat.B (limited impact), Cat.C (minimal or no impact, services) and Cat.FI (Financial Intermediation). 2. Assessment : audit and checklist, then over to the Credit Committee For Category A, projects, an environmental and social impact study (ESIS) is carried out by a specialised office. It identifies risks, proposes action plans, and determines their authorisation by the public authorities and financing by the Bank. A number of action plans for wind farm projects have been able to draw on past experience : informing nomadic peoples in the area, avoiding paths of migratory birds and taking account of the biodiversity in route layouts. For other categories, a project manager analyses the E&S risks relating to each project financing request using a checklist adapted to the national context and each category, enabling drafting of a social and environmental performance diagnosis of the project by activity sector. Conclusions are then presented to the Credit Committee in the form of a summary link sheet.

39 3. Contractualisation : corrective action plan and contractual clauses On the basis of the assessment and before any financing is authorised, corrective actions are defined for all identified unmanaged environmental and/or social risks. The client is asked to provide a response to each such risk in accordance with previously negotiated deadlines. Such corrective actions are then included in contractual clauses. 4. Control and monitoring A progress report is drawn up each year, summarising advancement of the action plan. Periodic visits are organised for category A and B projects. Stage 01 SELECTION Exclusion List Categorisation Stage 02 ASSESSMENT Independent audit for category A projects Checklist assessment for other categories Credit Committee Stage 03 Corrective Action Plan with Deadlines Contractual clauses CONTRACTUALISATION Compliance with regulations Stage 04 CONTROL AND MONITORING Periodic visits (Cats. A and B) Progress Report CONTINUING IMPLEMENTATION OF THE ESRMS AND PARTICIPATION IN SECTORAL REFLECTIONS The CPM makes use of a computer application dedicated to the ESRMS, streamlining procedures and identifying nodes (exclusion list, Category A, etc.) before files are processed by the Credit Committee, while also facilitating reporting. At national level, the GBP participates in work carried out by the Professional Association of Moroccan Banks (GBPM), with the help of Bank Al Maghrib and the Economic, Social and Environmental Council (ESEC), to promote an initiative in the eyes of the Moroccan government that seeks to make environmental and social assessment of projects statutory. This is an economic as well as an environmental and social issue, and timing is opportune as Morocco is set to host the COP22 in

40 THE NATIONAL AND REGIONAL ECONOMIC BOOM

41 2015 saw the signature of a VSE sector assistance convention with the IFC was decreed SME Year with an offer of advantageous rates for accompaniment of SME investment projects. In November 2015, the Banque Populaire inaugurated its representative office in Washington. In June and July 2015, ecosystem conventions in favour of industrial SMEs were signed with AMITH and AMICA. In May 2015, the Attawfiq Microfinance Foundation received the Banking Inclusion Prize awarded by African Banker. In March 2015, 10% additional shares in the capital of Banque Atlantique, currently 75% owned, were bought up.

42 A MODEL AT THE SERVICE OF REGIONALISATION Morocco s Groupe Banque Populaire maintains the regional vocation that is part of its genetic makeup and a key factor of its success Banques Populaires Regionales also play a major role in the model developed by the Group in the service of regionalisation PRESENCE IN EVEN THE MOST REMOTE AREAS As part of its proactive strategy of regional coverage, the GBP opens an average of 100 branches a year, 65% of them in the various regions more out-of-the-way locations, testifying to its pioneering commitment to regionalisation and banking inclusion throughout the country. BPRS, FULLY COMMITTED TO REGIONAL ECONOMIC DEVELOPMENT The Group s strategic vision of efficient regional development finds concrete expression in its providing Banques Populaires Régionales with all the attributions of a Bank, enabling them to act locally and autonomously in the service of local economic development. 90% of loans granted are decided upon locally without referring to the Group s central body. By mobilising resources in favour of development of the regions in which they are collected, BPRs strengthen the Group s regional foothold and take an active part in the regionalisation process, in particular by increasing access to banking facilities and accompanying the local economic fabric. 90 % of loans granted locally without consulting the central body ACCOMPANIMENT OF REGIONAL VSES/SMES Informing and accompanying VSEs and SMEs The first step in assisting small-sized enterprises is to provide them with relevant information on existing schemes designed to dynamise their development - schemes on offer from the State or from the Bank itself. To do so, BPRs and the Group organise local information / training sessions, lectures, forums and awareness caravans bringing in bodies promoting company support schemes. Since 2008, such information / awareness-raising initiatives, held four or five times a year, have met with resounding success among target companies. Dynamising the local business sector Company networking initiatives are regularly organised in partnership with the CGEM, Chambers of Commerce, the Banque Atlantique and European banks. Objective : to create additional activity opportunities for regional enterprises by, for example, fostering encounters with companies in Greater Casablanca. 36

43 BANQUE POPULAIRE LAÂYOUNE, THE SOUTHERN PROVINCES LEADING BANK THE REGION S LONGSTANDING LEADER AND MAJOR FINANCER The first bank to locate in the southern provinces (1976), Banque Populaire Laâyoune is now the region s leading bank with over 90,000 clients, including 17,200 members, a market share of 68% in the realm of financing and 54% in terms of deposits. It has also developed the region s densest network of branches, with 26 banks located across its soil. Banque Populaire Laâyoune also plays a key role in the economic development of the three regions it covers : Laâyoune Boujdour Sakia Al Hamra, Oued Eddahab Lagouira, and Guelmim Smara. BP LAÂYOUNE S NEW HEAD OFFICE, SHOWCASE FOR A NEW DYNAMIC Inaugurated in May 2014, BP Laâyoune s new head office embodies the ambitions it has for the southern regions. With this new facility to its credit, it is set to accompany the economic rise of the southern provinces and the city of Laâyoune, particularly at town-planning level. The head office is also intended to strengthen proximity with clients, with a modern design incorporating (among much else) reception facilities, business centres and highly sophisticated technological resources. The building promotes the region s image as a dynamic and rapidly developing area. The presence of BP Laâyoune s head office in the city is a guarantee of confidence that sends a strong signal to investors. The new head office serves as a showcase for a wider dynamic. BP Laâyoune is set to make an active contribution to extending access to banking facilities across the region, with the aim of doubling such access in three years to reach 60% in Other current projects are designed to enable the southern regions to fulfil their role as an economic platform for Moroccan-African relations. Construction of a border branch in Bir Gandouz, Lgargarat, 700 km from Laâyoune, is underway. BP LAÂYOUNE, PROACTIVE PARTNER OF THE FORUM FOR INVESTMENT IN THE SOUTHERN PROVINCES On the occasion of the forum, which was held on 28 march 2015, bp laâyoune brought in its company clientele located in northern regions for business encounters with southern operators. Objective : to boost their development in the sahara and provide southern regions with fresh opportunities. This initiative, promoted in partnership with the cgem and supported by the state, met with great success among the companies involved and led to the signature of a convention between the cgem and the banque populaire, bearing on financing of projects under particularly advantages conditions. 37

44 ACCESS TO BANKING SERVICES Financial inclusion encompasses all schemes designed to combat banking and financial exclusion. Institutionalised in Morocco by the Banking Law of February 2006, the right to an account aims to bring about universal proficiency in the use of banking tools. The Banque Populaire has always been active in this field, making particular use of : - its extensive network, which affords it a presence in even the most remote rural areas ; - the non-existence of obstacles to opening an account and a pricing policy within reach of all sectors of the population. AN EXTENSIVE NETWORK ENSURING MAXIMUM PROXIMITY TO ALL INHABITANTS At 31 December 2015, the Banque Populaire had 1,400 branches across 11 regions, the largest banking network on Moroccan soil. The Banque Populaire also ranks second in terms of numbers of branches in rural areas, the most remote in particular. It also provides Souk Bank mobile branches servicing commercial rural localities and areas, and banking services caravans (caravanes de bancarisation) travelling to meet the Kingdom s most isolated inhabitants. The Group plans to continue extending its network across the whole country ; to this end, it implements an active policy that has led to the opening of an average 100 branches a year over the last six years. PROVIDING ADAPTED, ACCESSIBLE PRODUCTS The Banque Populaire develops banking products and solutions adapted to the Kingdom s most vulnerable inhabitants. Low-income brackets In 2009, the Bank introduced an offer designed for low-income bracket clients, with suitably adapted pricing and distribution methods. Distribution essentially relies on the Attawfiq Foundation s 400 branches (see pages 42 to 45) and on Souk Bank mobile branches. The Bank is progressively extending distribution of the offers to other third-party networks, with ongoing determination to make it accessible to maximum numbers of prospective clients. Women clients benefit from the offer targeting low incomes In 2009, the Banque Populaire personalised its relationship with its women clients with the launch of the Ailes offer, which, in addition to the basic banking pack, includes a whole range of non-banking advantages via use of the bank card. «BOX MY LIFE», A MULTISERVICE OFFER FOR YOUNG WORKERS BOX MY LIFE provides young workers with a wide range of attractively priced banking services designed to facilitate management of their day-to-day expenditure and achievement of their investment projects, including : a bank account giving unlimited free access to all banking operations and the right to an overdraft ; a payment card, a credit card, and latest-generation e-banking and mobile banking services; highly attractive financing formulas covering personal needs and real-estate projects. 38

45 Young people Two offers, 1825 and 1217, are designed specifically for young people. They include banking and extra-banking services ( bons plans du moment, special partnerships, etc.) and are marketed at purely symbolic rates. Their main objective is to ensure financial inclusion of young people. Retirees The Banque Populaire markets two offers developed with the CMR and CIMR retirement funds. These products have enabled extension of banking facilities to thousands of retirees. Subscription to the BP & CMR Retirement Pack, which was launched in 2015 and only costs 5 MAD excluding tax a month, provides Caisse Marocaine des Retraites pensioners with a bank account and bank card for making payments and ATM withdrawals. The Rahati card, introduced in 2009, is a bank card intended for Caisse Interprofessionnelle Marocaine de Retraites retirees. It enables electronic payment of pensions whether holders have a bank account or not. INSURANCE PRODUCTS FOR EVERYONE The new subsidiary atta mine chaabi, which now manages all ma retraite and avenir mes enfants savings and capitalisation products, has launched a range of new provident products. Its missions also include increasing life insurance penetration rates to cover maximum numbers of clients. As regards health insurance, a number of projects are underway designed to provide real responses to the needs of various sectors of the population. FACILITATING LOW-INCOME CLIENTS ACCESS TO REAL ESTATE Keeping faith with its commitment to the public authorities to foster access to housing on the part of people with low or irregular incomes, the Banque Populaire has maintained its positioning as leader in the financing of social housing, relying on a widespread network that ensures its presence near low-cost real-estate sites throughout the Kingdom, as well as on a highly qualified sales force. Although the main indicators show a slowdown in growth of the real-estate sector, the Banque Populaire is keeping its head well above water in this field, with a market share up one point in terms of volume and value of FOGARIM 1 fund applications. It stood at 31% in August Guarantee fund for housing loans granted to clients with low or irregular incomes. It is managed by the Caisse Centrale de Garantie. 39

46 PROTECTION OF INDIVIDUAL CLIENTS PREVENTION OF OVER-INDEBTEDNESS Special attention paid to granting loans to private individuals The Banque Populaire has incorporated a range of checks and controls into its procedures for processing loan applications from private individuals, giving the go-ahead or otherwise to the granting of a consumer loan or mortgage to a private client. These preliminary checks aim to prevent overindebtedness and lead to systematic rejection of any loan applications categorized as risky, essentially in the client s interest but also in the Bank s. The Bank has a number of decision-making tools available to it in this respect : - the Credit Bureau is systematically consulted and provides information on (among other things) any loans the client may already have contracted with other local banks ; - A client s rating is set using a combination of several quantitative and qualitative criteria. Such rules and control procedures applied prior to a loan being granted have been bearing fruit. Numbers of outstanding debts relating to mortgage categories supported by the State have fallen. Transparent communication for consumer protection The Banque Populaire takes great care to ensure full compliance with regulations and has progressively adopted a range of measures, particularly with regard to communication and advertising, since enactment of Law on consumer protection : - Withdrawal of leaflets on consumer loans and mortgages, regarded as non-compliant ; - removal of promissory note guarantees, as stipulated by the said law ; - Transparent clarification of the Bank s and loan beneficiaries rights and obligations in consumer credit and mortgage contracts. All information on credit conditions is therefore clearly displayed (interest rates, annual percentage rate (APR), amount of insurance, processing fees, payment instalments, loan duration, etc.) and contracts incorporate information on various aspects of the loan concerned, including conditions governing early repayment and conditions for application of penalties in the event of non-payment. 40

47 A DEMANDING QUALITY INITIATIVE Its clients are the Banque Populaire s central concern, whether they are private individuals or companies. It has therefore set up a quality management system aimed at improving client satisfaction through adoption of an effective approach designed to provide products and services matching their client s expectations and in compliance with current legal and regulatory requirements. Further to this, the Bank has obtained ISO 9001 certification in the fields of e-banking and international trade. Processing clients complaints As regards processing of clients complaints, the Banque Populaire s Quality Charter ensures that all complaints are processed expeditiously and in a professional manner, so developing its clients trust. A number of improvements have been introduced, including a new client complaint management procedure and overhaul of the information system for management of such complaints. Technology at the service of client relations quality Direct contact with clients and traditional contact by mail are still the most usual means of communication. Nonetheless, in order to meet (and even anticipate) its clientele s various expectations, the Banque Populaire is making best use of its cutting-edge technology and information system performance : website, new desktop-publishing possibilities, Arabic in bank statements with clientele targeting, automation of assistance contract publication, etc. Quality certification The Bank has been ISO 9001 certified for e-banking since 2005 and for international trade (Remdoc and Credoc) since A project for certification of trading-room activities was launched in The Quality Directorate also oversees support for ISO 9001 certification of a number of subsidiaries, including Maroc Assistance and CTN-Flux (Cheques and SBEs). ISO 9001 BCP, THE ONLY PCI-DSS CERTIFIED BANK IN MOROCCO S BANKING SECTOR May 2014 saw renewal of the Banque Centrale Populaire s PCI-DSS (Payment Card Industry - Data Security Standard) certification, awarded by visa international in The standard, imposed by international systems (visa, mastercard, american express, jcb and discover), is subject to 12 security requirements that aim to guarantee clients maximum levels of bank-card data security. The BCP remains the only banking institution in morocco to have obtained this label of reliability, assurance and security of e-banking supports, in full compliance with international standards. 41

48 ACCOMPANYING DISADVANTAGED CITIZENS THROUGH MICROCREDIT AND MICROFINANCE THE ATTAWFIQ FOUNDATION : MICROCREDIT TO ESCAPE FROM POVERTY Set up by the Groupe Banque Populaire in 2000, the Attawfiq Microfinance Foundation seeks to take an active part in combating poverty and unemployment. As the GBP s sword arm in the fight, its activities have two major focuses : - distributing microcredits enabling people in difficult economic situations to create or develop an income-generating activity (IGA) ; - accompanying clients in the projects they have taken out loans to develop : training, advice and technical assistance. Strong principles lie behind the Foundation s action in favour of the more disadvantaged sectors of the population : - profits are 100% reinvested in development of the Foundation s activity ; - loans target development of microenterprises and access to housing for private individuals, but may in no case finance consumption ; - its governance meets the standards required by banking institutions, guaranteeing its sturdiness in a fragile and highly volatile sector. Attawfiq Microfinance s impact on the real economy in figures $$$$$$$ active clients in 2015, i.e. 1.4 million people directly or indirectly impacted 2 billion MAD outstanding Over 1 million clients in all The Attawfiq Foundation was given Fitch Ratings blessing in 2013, with a score of A- with stable prospects, and obtained the Banking Inclusion Trophy, awarded by African Banker, in May In addition, 23 of the Foundation s client 23 entrepreneurs were Prix National du Microentrepreneur and Prix CDG/ JAIDA prize-winners for innovative activities. 42

49 FINANCIAL INCLUSION ASSISTED BY CONCRETE EXPERT ACCOMPANIMENT Right next-door to targeted citizens The Attawfiq Foundation boasts almost 400 sales outlets across Moroccan soil, with nine regional directorates and 29 mobile units tasked with servicing the inhabitants of the Kingdom s most remote areas. Its organisation and outlet locations are designed to ensure close proximity to its target population sector : people not included in the traditional banking system women, young people, the inhabitants of rural areas, the illiterate, and so on and over 90% of its clients now have bank accounts, testimony to its active promotion of banking inclusion. Account managers in its main branches are specifically tasked with developing banking inclusion rates among microcredit clientele. Attawfiq Microfinance clientele, key figures Training, assistance with marketing, and protection of clients Much more than a simple microcredit, the Attawfiq Foundation provides its clients with assistance to ensure their successful integration into the economy. A field visit takes place before the loan is granted and, since its setup in 2014, a range of training courses has been on offer at each branch, with focuses including knowledge of the activity sector, company management, financial management, sales, savings, over-indebtedness, and education on using banking services. 18% Rural clients 18% 18- to 30 -year-olds 57% Women A Client Guide in simple Arabic explains the microcredit programme and informs clients of their rights and obligations, and best practices. 91,000 Client Guides have been distributed since July 2013 and a new version with added content has been finalised with distribution underway (80,000 copies). In order to assist its clients in marketing their products, the Foundation organises fairs and exhibitions on their behalf, through which they can keep track of changes in the market and develop their networks : suppliers, customers, distributors, etc. In 2015, over 120 clients benefited from these opportunities to market and exhibit their products to the public. 43

50 Client protection is a major component in assistance with banking inclusion. Well aware of this, Attawfiq Microfinance ensures that : - a close watch is kept on over-indebtedness, with awareness-raising programmes designed to prevent it ; - its pricing policy is both responsible and transparent ; - its clients are treated fairly and with respect ; - clients and consumers personal data is protected ; - complaint management procedures are strictly adhered to. In addition, the Foundation has given thought to and taken the first steps towards obtainment of SMART CAMPAIGN/Client Protection certification for FINANCIAL INCLUSION VIA AN ADAPTED OFFER Attawfiq Microfinance s offer covers two main forms of microcredit : solidarity and individual. It is therefore adapted to a wide variety of expressed needs and enables development of funding modes throughout a company s economic life. With solidarity credit, two to four entrepreneurs, each with their own project, contract a common credit and act as each other s guarantors. Microcredit offers are targeted to meet the needs of the population sectors concerned : startup of small-scale activities, development, and consequent larger investments. Individual credit is intended for microenterprises approaching the size of a VSE and whose needs are consequently greater. Some offers (individual and solidarity alike) target specific sectors such as the rural milieu, small-scale fishing, cooperatives or acquisition of a three- or four-wheel vehicle. In 2014, the Attawfiq Microfinance Foundation also introduced Islah Assakan, microcredits dedicated to responsible housing, in order to lend support to the public authorities in their efforts to eradicate substandard housing and contribute to improvement of living conditions of citizens targeted by microfinance. Two new products were launched in September 2015 : Islah, with a 20,000-MAD ceiling, and Islah Partenariat, with a ceiling of 50,000 MAD. The two products replace earlier versions in order to better meet the needs of clients and non-clients alike, public- and private-sector employees in particular. In a single quarter, the Foundation granted a full 70 loan applications for a total of 809,100 Dh. CFROM MICROCREDIT TO MICROFINANCE Well aware that microcredit alone is not enough to relieve the poverty and vulnerability experienced by low-income sectors of the population, the Foundation decided to diversify its products and introduce a new microinsurance offer adapted to its clientele s needs. In July 2015, the Attawfiq Microfinance Foundation put a new product on the market entitled Injad Attawfiq, developed in partnership with the Group subsidiary Maroc Assistance Internationale. It covers medical assistance and assistance in the event of death for microcredit subscribers. In exchange for a minimal subscription (98 MAD or 110 MAD), the service provides impoverished clients with access to healthcare and financial cover in the event of severe illness or death. At end December 2015, the number of contracts taken out stood at 92, 478 over 36% of active clients also saw the launch of a savings product : by opening a savings account at any Banque Populaire branch, the client can make withdrawals and deposits while generating interest, and with no obligation as to duration. 44

51 AWARENESS-RAISING ON CSR The Attawfiq Microfinance Foundation is committed to a range of ongoing initiatives to ensure that full account is taken of the issues involved in sustainable development in the exercise of its activities. This commitment is expressed in concrete form by the design of tools for awareness-raising on eco-habits to adopt at work and dissemination of a training module on Social and Environmental Responsibility. The Foundation has implemented a range of measures intended to strengthen its role in its clients social and human development in order to help ensure them better living conditions. A boost thanks to funding by the Millennium Challenge Corporation The Millennium Challenge Account (MCA) managed by the Millennium Challenge Corporation is a bilateral development fund set up by the US Government in January 2004 with the aim of combating terrorism through promotion of growth and eradication of poverty. Beneficiaries are selected on economic, social and good governance criteria. Morocco s microfinance sector was targeted by the PPA (Partnership for Progress Agency), which was responsible for MCA management in A wide range of projects submitted by Attawfiq Microfinance were funded in 2013, including : - the switch from microcredit to microfinance through the launch of two market studies : microinsurance and microsavings (see above) and development of a mobile banking offer; - improvement of network accessibility : branch visibility, direct ground-floor accessibility, coherence of visual identity throughout the country, increase in numbers of mobile units servicing remote areas, etc. ; - improvement of in-house procedures, including automation of debt recovery, risk mapping, automation of the rating system and overhaul of the HR system. PROJECTS FOR THE FUTURE Thanks to the financial assistance it obtained from the International Financial Corporation (IFC), the Foundation plans to widen its activities to include funding of VSEs, given that many of them are served neither by the traditional banking system nor by microcredit schemes. With the IFC s support, this new market will be identified in detail along with products and services to be developed. Attawfiq Microfinance takes an active part in deliberations on regulation of Morocco s microcredit sector. The final objective is to enable the Foundation s transformation into a microcredit Bank, so providing it with wider margins for manoeuvre in its financing activities with a view to increasing their maximum loan, which now has a 50,000-MAD ceiling, and diversifying its offer of products and services. EXTENSION OF THE PROGRAMME TO SUB-SAHARAN AFRICA VIA ATLANTIC MICROFINANCE FOR AFRICA (AMIFA) in 2014, the Banque Populaire set up atlantic microfinance for africa (amifa) to manage its microfinance programme in africa. the holding company is tasked with mobilising (alone or in partnership with organisations pursuing the sam social and societal goals) the financial, material and non-material resources required for setup of the african programme. through the holding company, the group puts its acknowledged experience in the field of microfinance at the service of african countries. initial commitments were made in early 2015, with group president mohamed benchaaboun s signature of several conventions for development of microfinance in Ivory Coast, gabon, guinea and mali. by virtue of these agreements, the banque populaire is committed to creation of a microfinance institution (mfi) in each of these countries, in compliance with local laws and regulations in force. by mid-2015, five mfis had already been cet up in mali, Ivory Coast, gabon, burkina faso and guinea. in december 2015, amifa inaugurated its first branch in abidjan. 45

52 Fostering company culture A LONGSTANDING MISSION: GIVING MOROCCAN YOUTH BACK ITS MOMENTUM Set up in 1991, the Création d Entreprises Foundation (FCE), a pioneer in its field, was designed to support the Moroccan State s policy focuses between 1983 and 1990, when the Kingdom s economy was undergoing a particularly acute crisis. For 25 years, its mission has been to promote creation of sustainable businesses. The FCE is attached to the Banque Populaire and provides entrepreneurs with personalised accompaniment via its expert professionals, each specialising in a particular activity sector and equipped with tried and tested skills in spheres including (but by no means limited to) finance, management and law. The Création d Entreprises Foundation in figures (2005 to 2015): 2057 enterprises economically created ,2 47% jobs created, an average of 5 per enterprise billion dirhams in total investment: an average of 605,731 Dh per enterprise of investments financed by bank loans A PROACTIVE REGIONAL APPROACH Between 2000 and 2004, inspired by the creation of the FCE, a whole range of new operators appeared on the scene (CRI, ANPME, AFEM, the Maroc Entreprendre network, CJD, FPME, etc.). The Foundation has developed partnerships with them enabling project promoters to enjoy optimal accompaniment combining the various entities different areas of expertise. In parallel, the Foundation has widened its field of action, initially centred on Casablanca, to locate regionally in agreement with Banques Populaires Régionales. In 2005, a national call for projects led to selection of 450 project promoters in all the Kingdom s regions. 200 of them succeeded in establishing sustainable businesses, largely thanks to two-year-long pre- and post-creation accompaniment. Statistics on creation of enterprises by Region in 2015 Tangier Nador Rabat Fez Casablanca Meknes Settat Beni Mellal Marrakech Oujda In the years to come, fully in step with Morocco s advanced regionalisation programme, the Foundation plans to provide project promoters with yet better assistance, by identifying each region s sectors of excellence and strengthening synergies with Banques Populaires Régionales. In % of enterprises accompanied tgnées by the Foundation were service companies entreprises de service Number of enterprises created Number of jobs created Casa-Settat Fez Marrakech Oujda Rabat Beni Mellal Nador Meknes Tangier

53 PROMOTING SELF-EMPLOYMENT The Foundation s vocation implies its presence alongside all those involved in setting up businesses, including in the most remote areas and in aid of companies in difficulty. The Foundation s strategy seeks to promote all forms of entrepreneurship, and it was consequently very much involved in the drafting of legislation enabling creation of the status of self-entrepreneur, which has recently been enacted in Morocco. STRONG TIES WITH THE DIASPORA The Banque Populaire is implementing its Maghrib Entrepreneurs programme under the aegis of the Ministry for Moroccans Residing Abroad (MCMRE) and with the support of the French Development Agency (AFD). The programme seeks to raise awareness among over 250 potential entrepreneurs with the aim of lending assistance to 100 Franco-Moroccan project promoters over a 2-year period. The first edition of the Forum took place in May 2015 and attracted a large number of participant entrepreneurs along with numerous project promoters, some thirty of whom are currently benefiting from assistance provided by the FCE s regional offices. The second edition was held in October 2015 and was a success on all levels, economic, cultural and human alike. Overall, the entrepreneurial spirit is clearly at work in all Diaspora project promoters, a third of whom are women. Accompaniment of MDMs in figures (between 2011 and 2015) : 228 enterprises created by MDMs France as number 1 er provider pourvoyeur 1,152 jobs created, i.e. 5 on average per enterprise 262 million dh in total investment, i.e. 1.2 million on average per enterprise 70 % self-financing MASTERCLASSES HELPING TALENT ACT AT INTERNATIONAL LEVEL As participants in mediterranean diaspora (diamed) project activities, the création d entreprises foundation and anima investment network organised the young entrepreneur masterclasses, held in december in casablanca and rabat. Intended for high-potential entrepreneurs under the age of 35 who are in the process of setting up a business or who have set one up within the past five years and now wish to develop internationally, the classes led to 30 of them benefiting from assistance with their projects and contacts with local diaspora coaches and talents. YOUTH, INNOVATION AND GREEN ECONOMY By taking part in the 1st Ibdaa Chabab National Youth Creativity Fair, the Foundation strengthened its positioning as a pioneer and leader with regard to stimulation and encouragement of innovation and creativity among the Kingdom s youth. The Fair, which was organised on the initiative of the Moroccan Association for Research & Development, was held from 26 to 28 November 2015 and provided the FCE with an opportunity to put its expertise to good use in promoting creativity among young people under 21 years old from various of the Kingdom s schools. The FCE was also involved in the National Forum of University Entrepreneurship (2nd and 3rd editions) and regularly takes part in the annual Doctoriales du Maroc : gatherings of doctoral students from all the country s universities, encouraging them to draft professional projects of their own before completing their theses. The Foundation also plans to invest in innovative startups in the years to come. Finally, the planned merger between the Création d Entreprise Foundation and the Banque Populaire Foundation will give fresh impetus to accompanying creation of green economy businesses, which are vehicles for innovation and environmental progress. 47

54 ACCOMPANYING VSEs There are currently some 1.7 million VSEs (companies with turnovers of less than 3 million MAD1) in Morocco. It is estimated that close to 47,000 new VSEs are created every year, accounting for 46% of jobs created. The Banque Populaire is a longstanding partner of such enterprises, which make up the major part of Morocco s economic fabric and represent tremendous development potential for the country as a whole. DEDICATED ADVISORS AND PRODUCTS In 2012, the GBP set up a network of account managers dedicated to VSEs and the liberal professions. They are tasked with accompanying entrepreneurs in the field and providing them with financial and non-financial advice and services. As the informal nature of much of Morocco s economic fabric is still a major obstacle to access to financial services, advisors also accompany businesses in the formalisation of their activities. COMPETITIVE FUNDING The Group makes every effort to provide highly competitive interest rates and is active in raising funds from international financial backers to enable it to increasing funding of VSEs. In November 2014, for example, the BCP contracted a funding line with the BERD to the tune of 100 million euros, to provide sustainable support to VSME growth. The Group s presence in the field is also evidenced by its official partnership of the International Forum of VSEs in five of the Kingdom s cities. First marketed in 2013, the dedicated range of Mountij packs have been expanded to include financing solutions to operational and investment needs. The packs also include Central Guarantee Fund (CCG) products. The Banque Populaire is the first bank to facilitate VSME access to credit via CCG counter-guarantees. 1 Official definition provided by the Regional Investment Centre (CRI), the Moroccan Office for Industrial and Commercial Property (OMPIC), the General Directorate for Taxes (DGI) and the State. THE GBP, A STAKEHOLDER IN VSE AND SME SUPPORT PROGRAMMES the gbp participates in the giz programme run by the german minister of economic cooperation and development, to support vses and smes over the period. it is also a stakeholder in the national strategy for development of vses. the gbp makes active contributions to maroc pme and ccg programmes, in particular by training their staff and setting objectives. target businesses are kept proactively informed and optimisations required to ensure programme success are regularly proposed to state bodies. its efforts have been crowned with success as the group is ranked in first place with regard to number and volume of enterprises selected to participate in the imtiaz programme of 48

55 ACCOMPANYING SMEs The SME segment comprises all structured businesses with turnovers of less than 200 million MAD. The GBP s action in favour of SMEs seeks to respond to the major problem they are faced with : finding the financing and accompaniment they require in order to develop successfully. It is estimated that half of Morocco s SMEs are selffinanced. HELPING SMES IN DIFFICULTY La mise à niveau et la restructuration In July 2014, the Banque Populaire introduced a credit offer via the Fonds de la Très Petite et Moyenne Entreprise (FTPME), a fund provisioned by the Banks and managed by Bank Al-Maghrib. Among other things, the offer helps counter the harmful effects of late payments, and provides support to businesses experiencing such economic difficulties as unforeseen drops in orders. to obtain at very short notice VAT totals deductible by reason of their export activities or investments, so avoiding cash-flow problems ; such sums can sometimes represent 20 or 30% of their turnover. The loan is borne 40% by the Bank and 60% by the FTPME and is granted for a maximum period of ten years. It consolidates arrears in payment and gives businesses back the margins for manoeuvre required for possible new investments. At 31 December 2015, 34% of FTPME loan applications (40% in terms of total sums) approved by the CCG were borne by the Banque Populaire, ranking it among the leading banks committed to the programme. Businesses concerned are mostly located in the Casablanca region, although major work has also been carried out with companies in the Agadir and Fez regions. Support for cash management In 2015, the Banque Populaire rounded out its industrial SME accompaniment offer with a dedicated scheme incorporating VAT credit advances. With this solution to hand, industrial companies are able, subject to conditions, investment. the group also participated in design of the istitmar croissance investment grant programme designed for vses and launched in the banque populaire also recorded very satisfactory performances on the ccg s ilayki, product designed for women company heads and for which it again ranks top of the bill on morocco s banking landscape. in the context of morocco s industrialisation programme, the group is lending its support to deployment of six textile ecosystems aiming at development of a better integrated moroccan sector. the group is acting as a channel for funding prior to release of state funds. 49

56 TOOLS AIDING DEVELOPMENT OF SMES Encouraging investment Every year, the Groupe Banque Populaire takes part in the running of the IMTIAZ programme. As well as informing SMEs on investment grants and encouraging them to apply for one, the Group s account managers help them to draft their applications. Donnez une nouvelle dimension à votre PME Since 2014, investment encouragement campaigns have been accompanied by funding offers at particularly advantageous rates. Proclaiming 2015 as SME Year, the Banque Populaire introduced a loan offer at a medium-term (2 to 7 years) rate of 5.25% excluding tax, designed to encourage investment on the part of SMEs (excepting companies active in property development) with an annual turnover of less than 200 million dirhams. Access to information The Simulator Online was inaugurated in 2013, providing special access at low cost to regulatory, fiscal, legal, customs and other information, along with printouts and simulations, in order to facilitate VSMEs daily lives. Partenaire du Pacte National pour l Émergence Industrielle GROWTH THROUGH GOING PUBLIC As a financial institution, the bank possesses all the necessary information on companies, their situations, stability and financial health. Given its expertise with regard to assessment of wealth-creating projects, put to good use by its subsidiaries specialising in corporate finance, the banque populaire is in a position to guide companies wishing to open their capital on the stock market. By providing companies assistance with all procedures preceding and succeeding their initial public offering, the bank takes an active part in the growth of the casablanca stock market. It also participates indirectly in such growth by directing a percentage of savings collected to the stock market, through management of shares by its specialised subsidiary upline capital management, as well as by investing a percentage of insurance savings products on the stock market. Finally, the bank takes an active part in furthering the ambitions of the future casa finance city (cfc) first of all by accompanying local and international businesses wishing to develop on the african continent and secondly by forming partnerships with international operators wishing to benefit from the many advantages on offer from the cfc with a view to developing on the african continent. 50

57 INTERVIEW WITH MOUNIA SENTISSI, SALES DIRECTOR, COPELIT Could you present COPELIT, its activity and its history? COPELIT was founded by Mr SENTISSI EL IDRISSI HASSAN, one of the pioneers of the Moroccan fisheries industry. The company started with a fish meal and oil production unit with outlets on a local poultry feed market. We turned to export in order to remedy cash-flow problems and finally decided to operate solely via irrevocable letters of credit. COPELIT s main export markets are Europe, Turkey, Russia and the United Kingdom, and we ll soon be adding the United States to the list. These days, our activities are diversified, with production of sardine oil for the cosmetics and food supplements sectors (Omega 3) as well as frozen and tinned pelagic fish. What part did the Banque Populaire play in your development and reorientation? We were taken up by the Bank Populaire right at the start. The Bank has always responded rapidly to our needs, which is essential in a sector like ours, where we work with a highly perishable product. When we decided to go in our new direction, we really knew very little about exporting. It was the Banque Populaire s advisors who really introduced us to export procedures by sharing their expertise with us. The Bank has always been an invaluable partner in times of crisis and for investments. In 2000, for example, when our sector was in crisis, we were granted overdraft facilities, advances against merchandise and export prefinancing. It was largely through such support that COPELIT Maroc has seen its turnover grow from 50 to more than 490 million dirhams in 25 years. Today, we re proud to employ 1,400 people in Morocco s Southern provinces. What is it that keeps you loyal to the Banque Populaire? The excellent rapport we have, of course, but proximity and responsiveness too. I really feel that the Banque Populaire has invested alongside us to ensure the Group s success. Can you cite any of your CSR initiative s key actions? Quality is our central focus. We ve obtained a dozen international certifications including ISO 14001, which covers the environmental management system, and we comply with the BSCI (Business Social Compliance Initiative) code of conduct on suppliers social performance. At societal level, the SENTISSI Group organises functional literacy programmes, the first of their kind anywhere in the Moroccan South. 51

58 Accompanying smes export projects B TO B IN AFRICA, A NEW CONCEPT FOR ACCOMPANYING SMES IN AFRICA Following the success of the first edition of B to B in Africa, held in Benin, Senegal and Ivory Coast in June 2014, the Banque Populaire repeated the operation in May 2015 in partnership with Maroc Export. Some hundred Moroccan export companies, all of them Banque Atlantique clients, were accompanied to Mali, Burkina Faso and Senegal. The scheme seeks to help participating companies, Moroccan and sub-saharan alike, to position themselves on markets generating growth by providing them with support for their development, commercial activities and funding. It draws on Maroc Exports expertise and logistical knowhow as well as on the synergy between Banque Populaire and Banque Atlantique. B to B in africa in figures (2015 edition) 95 Participating enterprises, 40% of them primarily export companies 2,533 B to B meetings between moroccan companies and their counterparts in the countries visited 8 Activity sectors represented, with the agrifood and bpw sectors predominating. It provides an ideal opportunity for : taking advantage of preapproved appointment books to conclude business partnerships ; getting to know about major infrastructure projects through planned visits to sites ; getting acquainted with each country s business climate and current incentive measures ; benefiting from the Group s funding offers. Still in the context of B to B in Africa, reciprocal visits were organised, with sub-saharan enterprises being hosted in Morocco and put in touch with Moroccan operators in the same sectors. June 2015 saw a week of B to B meetings and visits to Moroccan companies, organised for a delegation of 40 Togolese operators. SUB-SAHARAN COMPANIES INVITED TO EXPLORE MOROCCAN MARKETS African SMEs are regularly invited to explore Moroccan markets. A few examples : - Banque Atlantique company clients from five WAEMU countries were invited to take part in sectoral trade fairs and meet with BPR company clients ; - B to B meetings were arranged for some hundred Guinean companies in the context of the Morocco- Guinea Forum organised by the CGEM. 52

59 MAP OF AFRICAN LOCATIONS BENIN - BURKINA FASO - CENTRAL AFRICAN REPUBLIC - IVORY COAST - GUINEA MALI - MAURITANIA - MOROCCO - NIGER - SENGAL - TOGO 53

60 financing development projects in africa Long present on the African continent, the Banque Populaire has been active in the Central African Republic, Guinea and Mauritania1 since It extended its presence significantly in 2012 by taking control of the Banque Atlantique, a group of seven Banks located in seven West African countries : Benin, Burkina Faso, Ivory Coast, Mali, Niger, Senegal and Togo. Bringing its expertise as a retail bank to bear, the BP has progressively turned the Banque Atlantique (which originally focused on a large company clientele) into a universal bank. The Banque Populaire is therefore ideally positioned to accompany Africa s major development projects. For the Group, it is naturally partly a question of developing African markets as the essential relays of growth that they are, but above all, as a responsible Bank, it is a matter of being an energetic actor in the African Continent s economic and financial integration. BANQUE ATLANTIQUE, A BANK AT THE SERVICE OF THE AFRICAN DYNAMIC Proof of its vivacity and the efforts it makes to accompany africa s economic emergence, the banque atlantique recorded a 16% increase in sums of loans granted between 2014 and ACCOMPANYING STATES IN THEIR DEVELOPMENT Committed to accompanying the socioeconomic development of the countries where it is located, the Banque Populaire acts alongside African States in funding major projects and infrastructures, often as lead partner. The Banque Populaire is one of the top State funding partners in Senegal, the Central African Republic and Guinea. CONVENTIONS SIGNED IN THE CONTEXT OF THE ROYAL TOUR The banque populaire took an active part in the royal tour to Mali, Ivory Coast, Guinea and Gabon in the first quarter of 2014 by signing 11 bilateral agreements on economic and social projects in the countries where it is located. 250 billion CFA francs mobilised in favour of Senegal The following royal tour in mai 2015 led to signature of a convention between the gbp and the senegalese state to raise funds on the waemu financial market to the tune of 30 billion cfa francs. In February 2014, Banque Atlantique Sénégal, Atlantique Finance and the Upline Group, all Groupe Banque Populaire subsidiaries, raised a loan of 250 billion CFA francs (500 million US dollars) in favour of the State of Senegal. The loan is being used to fund structuring projects, mainly in the fields of road, rail and airport infrastructures, as well as in the energy and agriculture sectors. The operation a first for the region both in terms of the way it was mounted (a combination of CFA francs and euros) and the size of the sum involved testifies to the Group s commitment to accompanying the Senegalese State in implementation of its ambitious economic and social development projects. 1 Minority participation 54

61 THE BANQUE POPULAIRE MOBILISED FOR DEVELOPMENT OF SUB-SAHARAN COUNTRIES : THE EXAMPLE OF IVORY COAST The BACI, a key player in increasing access to banking facilities and a mainstay of the Ivorian economy The Banque Atlantique Ivory Coast is a particularly dynamic institution with a continuing series of noteworthy performances to its credit. It has recruited over 15,000 clients a year since 2012, and consumer credit allocations increased almost sixfold between 2012 and 2014 in sums granted - four times more than (and therefore little to do with) the increase in numbers of clients over the same period. The BACI has also doubled its credit market share, which increased from 5.3% in 2012 to 10.5% in Structuring projects funded in 2014 and saw major funding released for infrastructure and healthcare projects. The BACI granted sums to the tune of 5 and 43 million CFA francs respectively to the Road Management Agency (AGEROUTE) and the Road Maintenance Fund (FER) under the aegis of Ivory Coast s Ministry of Economic Infrastructures. AGEROUTE is responsible for delegated project management while the FER is responsible for financing services relating to studies and current and periodical maintenance work on the road network, and contracting and managing road maintenance studies and management. The Fund for Financing Urban Environmental Sanitation Programmes (FFPSU), under the aegis of the Ministry of the Environment, Urban Environmental Sanitation and Sustainable Development, was also granted 5 million CFA francs. The fund finances urban environmental sanitation programmes, investments in equipment and infrastructures for treatment and elimination of waste, and local authority support programmes. In 2014, Ivory Coast was in the spotlight at the Pollutec exhibition, with FFPSU representatives taking an active part in discussion of waste management problems. A wide range of agreements on funding future projects Five conventions, totalling 2.5 billion MAD for financing economic and social projects in Ivory Coast, were signed on the occasion of the Morocco-Ivory Coast Economic Forum held during the Royal visit. In addition to setup of a microfinance institution in Ivory Coast, based on the Attawfiq Micro-Finance Foundation s successful model (see page 45), the agreements bear on: - The GBP s financing, via the BACI, of 5,500 classrooms for the Ministry of National Education and Technical Education, for a total investment of 90 billion CFA francs (about 1.5 billion MAD) ; - a convention with the Ivorian Women s Support Fund (FAFCI) bearing on 500 million CFA francs (8.5 million MAD) of additional financing for the programme on facilitating Ivorian women s access to microcredit ; - the loan of 60 million US dollars (500 million MAD) granted by the Japanese Banking Group Sumitomo Mitsui Banking Corporation (SMBC) and the line granted by the IFC to a maximum of 50 million US dollars (over 400 million MAD) to help support international trade operations on behalf of the Group s African subsidiaries clients. During the 2015 Morocco-Ivory Coast Economic Forum, the Bank signed numerous public/private partnership agreements with the State of Ivory Coast along with conventions bearing on accompaniment of Moroccan enterprises wishing to invest and transfer their expertise there. 55

62 Acting as preferred partner of the marocains du monde THE LEADING BANK FOR MAROCAINS DU MONDE (MDMS MOROCCANS LIVING ABROAD) The Banque Populaire s history is closely connected to that of Moroccan emigration. The latter really began in the early 1960s. In 1968, the Banque Populaire launched a pilot operation designed to increase use of banking services among Moroccan migrants and encourage them to transfer savings back to their homeland a response to the public authorities desire to facilitate repatriation of savings made on their incomes by the first generation of Moroccans working abroad. الجيل الا ول من مغاربة العالم منذ 50 س نة نتقاس م نفس القيم And today, the Banque Populaire is still the benchmark actor with regard to this particular clientele, with a market share of over 50% with regard to MDMs bank deposits in Morocco and capturing over a third of transfers to the country. Une agence Banque Populaire des années soixante. Marocains du Monde de la première génération depuis 50 ans nous partageons les mêmes valeurs. ACCOMPANYING A PLAN OF KEY IMPORTANCE TO THE ECONOMY The first, second and third generations of MDMs account for almost 5 million people in all and play a major part in the Moroccan economy. Transfers of money to the country by the Moroccan diaspora in 2015 were to the tune of 61.7 billion MAD, 7% of the GDP and are the Kingdom s main source of foreign currency. Transfers are mainly intended to finance consumption needs of families back in Morocco, with over 20% of Moroccan households benefiting from such aid. MDMs keep much of what is left in savings accounts opened with Moroccan banks : at end 2015, MDM bank deposits came to over 163 billion MAD, almost 20% of all bank deposits in Morocco. Such deposits play a major role in local financing of loans at very competitive rates. Finally, although to a lesser extent, MDMs make direct investments, in particular to the benefit of their native, often remote regions (Souss, Nador, Oriental, Nord, etc.). These days, MDMs also account for much of the Kingdom s tourism. In 2015, the MDM segment represented over 40% of overall arrivals a total of some 3.9 million travellers. The Banque Populaire was the first bank to inaugurate a summertime campaign welcoming and assisting MDMs on their arrival back in Morocco. The banque populaire and the tourist office promote morocco as a tourist destination At the end of 2014, the two institutions signed a three-year framework agreement mutually committing them to pool their resources and skills to increase promotion of tourism in morocco to the mdm community. The onmt will take advantage of the proximity services already set up by the gbp for moroccans living aboard in undertaking shared actions to promote morocco as a destination. The first action, in july 2015, was the inauguration of the bladi f'bali offer, a loyalty programme aimed at the bank s mdm clients. 56

63 ACCOMPANYING A POPULATION WITH EVER-GROWING EXPECTATIONS The Group s MDM clientele is becoming increasingly heterogeneous. These days it includes more women, is more qualified, and destinations are more varied, taking in North America and the Gulf countries among others. Such heterogeneity is expressed by diversification of ways of making use of banking services, which has led the Banque Populaire itself to evolve and continue to make additions to its products and services designed for this clientele. Recent initiatives undertaken by the Bank to meet these new needs include : - the launch of Bladi Assil in 2014, on the occasion of the fiftieth anniversary of the first migratory movements to Europe, has enabled accompaniment of MDMs over the age of sixty wishing to open bank accounts for their families, as well as provision of legal assistance, in particular with regard to inheritance operations ; - the Bladi Invest scheme, which accompanies MDMs, 2nd and 3rd generations in particular, who wish to invest in Morocco ; - Chaabi Bank s Islamic Finance offer in Europe, which has met with great success ; - the launch of new innovative offers facilitating and simplifying money transfers, so meeting the requirements of younger generations ; - accompaniment of Africans living abroad through Chaabi Bank s and Banque Atlantique s networks. CHAABI BANK LOCATIONS ACROSS THE WORLD The Banque Centrale Populaire inaugurated its representative office in Washington in 2015 a first for the Moroccan banking sector. Among other things, the office is tasked with facilitating the Moroccan community s business contacts with its Bank in Morocco, and providing information on products and services available in Morocco ; The Banque Populaire is already present in Montreal, and this new representation strengthens its presence in North America 57

64 A BANK WITH A FIRM FOOTHOLD IN ITS COMMUNITIES

65 2015 saw implementation of the A Banque Populaire branch, a school upgraded pilot project saw implementation of the first phase of the project for equipping public Grandes Ecoles preparatory classes with computers saw support provided to the Casamémoire association to finance a documentary film on Casablanca s architectural heritage, for inclusion in the city s candidacy submission for inscription on the UNESCO World Heritage List saw financial support to the Western High Atlas Museum.

66 Acting responsibly towards our suppliers Transparency, fairness and stringency have always guided the Groupe Banque Populaire s relations with its suppliers. A well-founded trust that has led to longstanding partnerships with many of them. A RIGOROUS SELECTION PROCEDURE The GBP applies the principles of competitiveness and launches calls for tenders for the great majority of supplier contracts. A Calls for Tender Committee ensures that best practices are complied with ; these are listed in an in-house memorandum issued by the GBP to guide its teams in all procurement procedures, detailing conditions, selection criteria and the decision-making bodies involved in each stage of the contract s duration. Modelled on a State decree, the memorandum is yet more stringent in its requirements. Clear, detailed specifications vary depending on type of purchase in order to meet specific requirements, such as inclusion of environmental clauses in contracts for purchase of IT equipment and furniture. Once a supplier is selected, further controls may be carried out, in particular to check on work processes and/ or environments. SUPPLIERS FROM THE LOCAL BUSINESS FABRIC As a neighbourhood bank par excellence, accompanying local development has always been one of the Group s priorities, and its purchasing choices are of key importance in this regard. The Group s purchasing policy prioritises local and national companies of equal merit, for Banque Centrale Populaire purchases (IT equipment, furniture, office supplies, etc.) and the less onerous needs of BPRs. The Groupe Banque Populaire puts its trust in the expertise of young and/or small-scale companies, which are more fragile than larger groups : most of its suppliers are local SMEs with proven knowhow. For example, the new HR information system was designed and implemented and is managed by a Moroccan SME, while inauguration of Mobile Banking and development of ebanking Entreprise, both highly strategic projects, were entrusted to two young Moroccan startups. One of today s leading companies in the realm of electronic banking got it very first contract with the BCP further proof that the Group acts as a springboard to success! 15 days on average before settlement 60

67 THE BANQUE POPULAIRE FOUNDATION, A MAJOR ACTOR IN EDUCATION AND CULTURE IN MOROCCO The Banque Populaire Foundation (FBP) is the oldest foundation set up by a Moroccan bank dedicated to the exercise of citizenship. One of the first NGOs recognised as being of public utility, it has distinguished itself for over 30 years in the support of local and national development policies. These days, its activities have five priority focuses: education, social development, heritage, culture and environment 140 dedicated employees EDUCATION Education as its initial project The Banque Populaire Foundation was set up in 1984 to underpin the civic vocation of a banking institution that puts the individual at the heart of its concerns. It was initially intended as a response to the wishes of a large section of its clientele, the MDMs, who wanted to ensure that their children received an education rooted in the identity, values and realities of their homeland. The trust evidenced by its expatriate clients enabled the GBP to set up its first Foundation and inaugurate a first boarding school in Agadir. With this initial success to its credit, the FBP opened a second school in Tangier in The two schools are not only open to MDMs children, they also take local children selected on the basis of entrance tests, along with pupils from SOS Children s Villages and the most disadvantaged sectors of society. They provide optimal conditions for a first-rate education, with no fees for the poorest pupils. Ensuring the excellence of the education it provides has always guided the FBP s activities. In its earliest days, it formed a partnership with the Ministry of National Education (MEN) and, when the Tangier school was being set up, developed a pedagogical approach designed to enable Berber-speaking pupils and/or those living in non- Francophone countries to integrate progressively into the Moroccan education system based on Arabic and French. The two schools results are currently among the best in their regions. Apart from both schools 100% pass rate in for transition from primary to secondary schooling and from lower to upper secondary education, their pupils are regular winners of prizes and accolades : the Mathematics Olympics (organised by the MEN and the Severo Ochoa Spanish Institute) and the Pleasure of Reading competition (held alongside Tangier s International Book and Art Fair), along with a range of sporting and arts competitions have seen pupils from both schools distinguish themselves by being awarded first prizes. Over pupils in all, MDMs and local children alike 61

68 FOSTERING EDUCATION AMONG THE MOST DISADVANTAGED School dropout is a real problem in Morocco, where four out of ten children leave primary school prematurely. Consequently, thousands of young people end up with little prospect of socio-professional integration. Developing education in rural areas The FBP is committed to developing the education system throughout Moroccan soil. Its support of the Zakoura Foundation s Integrated Development of Douars (DID) programme, underway since 2008, has enabled construction of four houses in rural areas in the regions of Azilal, Taroudant, Bouarfa and Doukkala ; integrated houses in each Douar dispense post-literacy courses along with awareness-raising programmes on hygiene and health, preschool education and programmes designed to improve the competences of local associations. Through its A Banque Populaire branch, a school upgraded project, implemented in collaboration with Regional Education and Training Authorities (AREFs), Abdelhafid Rerhrhaye and the Najah Association, the FBP works to improve pupils schooling conditions and teachers working environment. It rehabilitates remote schools infrastructures and provides them with a monthly subsidy to help with their operating expenses. The Oriental and Taza Azilal regions hosted pilot projects. The number of schools upgraded will eventually match the number of CPM constituent bodies branches. In the same spirit of rural development and proximity advocated by the Group, the FBP scored a first in 2015 with Kan Ya Makan a travelling library attached to the Souk Bank initiative, which criss-crosses the most remote regions giving schoolchildren easier access to the pleasures of reading. Art as a vector of progress The FBP takes an active part in the Mazaya programme developed by the Ténor Foundation for Culture. The programme brings together some forty disadvantaged and/or out-of-school children between the ages of 8 and 14 in classes combining regular education with an in-depth music programme training them to become professional musicians. The FBP also supports the Oum Keltoum Sociocultural Complex, which, among other things, provides art courses for young people from disadvantaged families in Casablanca. 62

69 PREPARATORY CLASSES : A HELPING HAND TO EXCELLENCE INTERVIEW WITH ABDELAHAFID RERHRHAYE A confirmed altruist and an emblematic figure in Morocco s voluntary sector, Abdelhafid Rerhrhaye brings energies those of companies in particular to bear on the community projects he promotes. Combating cancer and, assisting people with Down s syndrome are just two of his focuses. He is also one of the active founders of the CPGE collective : Preparatory Classes for Grandes Ecoles. Tell us something about your action in favour of preparatory classes I ve always done my best to see that pupils study under the best conditions, but structured action only came with the setup of the collective in It brings together school associations (X, Ponts et Chaussées, Centraliens and Anciens des Classes Prépas), company foundations and a number of personally involved stakeholders, creating real synergy and networks Two voluntary workers in particular support me here : Fatema Nasrouni from the Moulay Youssef CPGE, Foundation, which helps brilliant but impoverished pupils via company donations, and Françoise Agoumi from the Ministry, who works on the pedagogical component. The Collective decides on an action, and the institution that co-implements and finances it takes it over. What is the Banque Populaire Foundation s role in these actions? Together, we ve implemented three initiatives with the Foundation. In 2010, publication of the Preparatory Class Annals, which weren t previously available and are sold at a very low price. Accompaniment of the Public Speaking competition since its 2 nd edition in The competition seeks to improve levels of English and prepare pupils for Grandes Ecoles competitive exams. Levels this year are excellent according to a teacher on the jury. And at the moment, we re collaborating with the Management of the CNIPE1 and the Moulay Youssef Foundation to equip Morocco s 25 CPEG centres with computer equipment and Internet, with 3 years subscription paid. Acting on behalf of these classes is all the more satisfying in that 50% of pupils are girls, whose education will ensure that of future generations. Laâyoune Geographic division of Morocco s CPGE Public Centres Agadir Tangier Kenitra Salé Rabat Mohammadia Casablanca El Jadida Settat Safi Guelmim Fez Meknès Khourbga Beni Mellal Errachidia Marrakech State of progress regarding installation of computers : Installations in 2014 Installations in 2015 Nador Oujda Taza 1 National Centre for Pedagogical Innovation and Experimentation Dakhla 63

70 SOCIAL AND SOCIETAL ACTION In addition to education, the FBP acts on behalf of children in the widest sense, as well women and people in difficulty Accompanying NGOs and voluntary organisations The Banque Populaire is committed to aiding many NGOs and voluntary organisations responsible for people in difficulty. Every year, over a hundred such associations and NGOs benefit from its financial and/or human support. The FBP acts on behalf of children with such bodies and initiatives as : - the National Observatory for Children s Rights ; - the Academia Foundation ; - the Mazaya project (see page 62) ; - the Oum Keltoum sociocultural complex, which welcomes any and all projects promoting youth, aid to children in difficulty and human development ; - the AMESIP (Moroccan Association for Assistance to Children in Precarious Situations), responsible for setting up the Shems y National Circus School, which has become a benchmark in terms of training quality ; - Sponsoring the Children s Parliament since A PUPIL FROM TANGIER AT THE CHILDREN S PARLIAMENT A pupil in the first year of tangier s lower secondary school had his name added to the national list for the children s parliament. A great achievement! The parliament, which was set up in 1999 under the presidency of hrh princess lalla meryem, stems from the national observatory for children s rights and enables young people to develop their civic spirit and get to know how the kingdom s legislative institutions operate. The Foundation is involved in promotion of women s rights through its support of the National Union of Moroccan Women (UNFM). It also lends its assistance to population sectors with special needs, for example, by accompanying the Moroccan Association for Assistance and Support of People with Down s Syndrome (AMSAT). A PORTAL DEDICATED TO MOROCCANNESS: The Foundation has onlined a portal for the Group s expatriate clientele, the Marocains du Monde, designed to strengthen their ties with their homeland. The website includes culture, news, spotlights on social changes in the Kingdom and a platform for exchanges. Ranked as the best of 15 similar portals by the public s online vote, the website seeks to be a melting-pot of experiences and a random-access memory of Morocco. Popular among all MDMs, it has over 150, 000 individual visitors a year. Over 2,500 articles, dossiers, debates and national encounters published on the website in

71 CULTURE The Banque Populaire Foundation has always been committed to sponsoring young Moroccan artists ; whether they live in Morocco or abroad. Over time, it has become much more than simply a philanthropic patron of the arts, and is now nothing less than an incubator for new talent. Its acknowledged determination to promote art and culture make it a special partner of Moroccan creativity. An overview of its action in the realm of culture and heritage. Supporting talent The Foundation supports talent in three artistic fields : - Visual arts. As an arts patron, the FBP finances the creation, exhibition and promotion of visual works by young artists. It also supports such events as the International Conference on the Creative Economy in Africa, Asilah s International Symposium of Contemporary Art and, abroad, the Venice Art and Architecture Biennales. - Theatre. The FBP enables professional and amateur theatre companies to perform in Morocco and abroad. It also sponsors almost all such drama festivals as Théâtre et Cultures, organised by the Foundation for the Performing Arts, as well as university theatrical events. - Literature. The FBP is an official partner of the Book Fair organised by the Ministry of Culture, and of the International Fair organised by the Tangier Region Cultural Action association. It takes responsibility for funding and overseeing publication of such works as Un demi-siècle de photographie au Maroc par Flandrin 1907/1957, l Histoire du Port de Casablanca, Photographies 1913/2013 and the Arabic version of the catalogue for the Medieval Morocco exhibition held at the Louvre Museum and the Mohammed VI Museum of Contemporary Art in 2014 and Sponsoring and other actions - Cinema. The FBP has been official sponsor of the Marrakech International Film Festival since its first edition in 2001, and also sponsors Khouribga s African Film Festival, Tetouan s International Festival of Mediterranean Cinema, the International Festival of Cinema and Common Memory in Nador, Salé s International Festival of Women s Films and the Festival of Mediterranean Short Films in Tangier. - Music. The FBP is a longstanding partner of the Fez World Sacred Music Festival, Oujda s Rai Music Festival, the Jawhara Festival in El Jadida and the Mawazine Rhythms of the World Festival. 65

72 HERITAGE Heritage is a key part of our civilisations culture and history : preserving, rehabilitating and sharing it is a natural basic investment in which the Foundation takes an active part. It implemented or extended a number of projects in 2014 : - its commitment to rehabilitation of Casablanca s Old Medina alongside the Casablanca Carrières Centrales association s supervising body, and publication of a book on the city s history ; - promotion of a photo library unparalleled in Morocco (Flandrin Collection, see inset) ; - financial support of the Casamémoire association s documentary film on Casablanca s architectural heritage, intended for inclusion in the city s candidacy submission for inscription on UNESCO s World Heritage List, as well as of organisation of Heritage Days, with each edition including an exhibition of photographs of Casablanca from the Marcelin Flandrin private collection ; - financial support of creation of the Museum of the Western High Atlas, whose 22 galleries aim to acquaint visitors with the geology, nature and history of this part of Morocco. Casablanca : Villa Violetta in the 1930s Casablanca : Villa Violetta in 2015 THE FLANDRIN COLLECTION : CASABLANCA S PHOTOGRAPHIC MEMORY In 1994, the duty of memory and of preserving its country s tangible and intangible heritage led the foundation to acquire a collection of some 40,000 photographs documenting the history of morocco from 1907 to 1957 : the flandrin collection. Marcelin flandrin was a french army photographer who first came to morocco in 1901 and started his military service there in Demobilised after the first world war, during which he distinguished himself as an aerial photographer, he settled in casablanca and set about immortalising the white city s art-deco architecture, still unaffected by the burgeoning urban-planning schemes that were soon to threaten its existence. Fascinated by the city s unrelenting energy, surrounded by artists, architects, businessmen and intellectuals, he captured scenes of everyday life, including folklore, portraits and architecture. This national treasure is the pride of the foundation, and as it must be conserved and shared with all those who wish to consult it, the photographs it contains are made available to researchers and historians. They have been made good use of in a number of works on moroccan history, including un demi-siecle de photographie au maroc par flandrin 1907/1957 and l histoire du port de casablanca, photographies 1913/2013. This invaluable photo library has been the subject of years of meticulous archiving and conservation work (digitisation, storage in rigorous hygrometric and hermetic conditions, etc.). 66

73 FLANDRIN COLLECTION PHOTOGRAPHS Sefrou in 1920 : A grocer s serving as a post office Casablanca : Bd. Mohammed V Central Market Casablanca : A traditional front door Casablanca : Boulevard de Paris Casablanca : Clock tower - Place de France Casablanca : A square in the old medina Casablanca : Maarif - Avenue de Mazagan Banque Populaire Foundation Private Collection, Legal Deposit 1984/ GB

74 PERSPECTIVES AND ANNEXES

75 csr perspectives for the group and the sector A word from Mohammed Jaouad AMRI, Director of Control, Compliance and Deontology, responsible for CSR In your opinion, what is the next major challenge the Banks will have to take up? The Groupe Banque Populaire has positioned itself as a partner of the National Strategy on Sustainable Development, adopted on the impetus of His Majesty King Mohammed VI, which led to the drafting of the National Charter for the Environment and Sustainable Development in In this context, and as a leading financial institution, we have not been lax in assuming our role as a driving force among economic operators in development of an economy with greater respect for the human element and the environment. The challenge facing us now - I mean the GBP and all financial institutions - is to ensure the triumph of sustainable finance. In other words, align financial systems on sustainable development. Although it is of course of major interest to the Government, supervisory authorities and professional associations, sustainable finance is above all the financial community s responsibility. It must not be seen as a constraint or obstacle to its development, as it will enable banking institutions to control their credit portfolios better and take advantage of new opportunities in such fields as clean technologies and financial inclusion. Financial institutions commitment to sustainable finance is sometimes in answer to new regulations, but it may also be voluntary in the context of professional groups or at institutional level. At the Banque Populaire, we try as far as possible to anticipate regulatory changes by adopting proactive initiatives such as the Environmental and Social Risk Management System set up in Today, it s a question of the entire financial sector getting in step with the actions already committed to by Bank Al-Maghrib, the United Nations Development Programme s Financial Initiative and the International Finance Corporation in favour of financial inclusion and education, promotion of VSMEs, consumer protection, and so on. Alongside its peers and in close collaboration with all stakeholders concerned, the Groupe Banque Populaire is determined to participate in the drafting of a sustainable finance strategy adding impetus to the financial sector s contribution to construction of a sustainable and inclusive economy. 69