Case Study : BMCE

Notre monde est capital

Prepared by
ABDELHAK ES-SKOUT P1402
AYOUB BERRISSOUL 2300
SAID BOUFARES 2299
ISMAIL DEHBI 2305

BMCE Bank
Nearly 5000 employees in Morocco

Nearly 2 million bank accounts

More than 560 agencies including 20 Business Centers and Corporate Agency

More than 600 Automated Teller Machines

Nearly 1 million bank cards issued

Over 170 Products & Services

Leading player on the capital markets, advisory activities and investment

Privileged position on the corporate market

Reference Bank for Foreign Trade and International Operations


BMCE Bank
Key player in the banc insurance and electronic banking

Innovative bank in terms of products and services to its
various market segments
(Individuals / Professionals, MRE, Low Income, ...)

Presence in twenty countries (Africa, Europe and Asia)

More than 7800 employees in 22 country

Promoting education in rural areas through the program
Medersat.com Foundation BMCE


Integrated Community Development: Literacy, health education and
sports, electrification and drinking water douars, preservation of
the environment, ...

Significant contribution to the development of micro-finance

Commitment to sustainable finance through the establishment of a
system for managing environmental and social impacts, a first in the
banking sector.

Certification ISO 9001 version 2000 for activities abroad, Electronic
Banking, Securities, Loans to individuals, Project Financing,
Collections, Bank and Insurance Management, HR, Facilities, Capital
Markets

Subsidiaries
BMCE Capital, a 100% subsidiary of BMCE Bank, the Investment Banking Group's
operating activities on the markets, investing and consulting.

BMCE Capital Exchange, a key player on the market intermediation market, 100%
owned by BMCE.

BMCE Capital Management, a leading player on the market for asset management,
100% owned by BMCE.

MediCapital Bank, 100% subsidiary of BMCE, based in London, bringing together
all the activities of BMCE in Europe, specializes in Corporate Banking, Investment
Banking and Markets.

Casablanca Finance Markets, specializing in fixed income products, investment
banking is devoting all its resources to market activities, operating on money and
bond markets. It is owned 33.3% by BMCE.


Subsidiaries
Development Bank of Mali, owned as to 27.38% by BMCE
Bank, is the leading bank in Mali and the fourth bank in the
UEMOA.
The Congolese Bank, controlled 25% by BMCE Bank is a
commercial bank that enjoys a solid financial base and a
capital of expertise varied.
Salafin, a subsidiary of BMCE represent 92.8%, is a finance
company whose main purpose is to distribute consumer
credit.

Owned as to 35.92% by BMCE, MAGHREBAIL finance leased
equipment and real estate professional for all industries.


Group subsidiary BMCE at 100%, Morocco Factoring is the
first factoring company in Morocco.

Euler Hermes RHOMA leader in Morocco's credit insurance
is owned 20% by BMCE.

EMAT, supplier and outsourcer of services and technology
solutions based around two media trades, Multichannel
and Outsourcing.

GNS, the first operator in Morocco and Value Added
Network Solution Provider EDI (Electronic Data
Interchange).

Mission
It is a great multi-business Corporation. Its
portfolio consists of several activities within
the financial services market in this case
banking services, insurance, and consumer
credit
Vision
Assert itself as the preferred partner to
corporate clients and individuals
Values
Excellency
Performance
Transparency
Synergy
Mobility
Succession
Goals
Build customer loyalty by improving the
quality of reception, the quality of service and
claims processing.
Consolidate its positions
Pursue its development plan
Go international

Objectives
Achieve strong growth that is both deposits as
credits
Important efforts to reduce the rate of bad
debts and litigation
Rationally develop its activities namely the
quality of service and hospitality, building
sales forces and security operations.
Consolidate its leadership in financing
cunsomer credits

External Diagnosis
PESTEL Analysis
Michel Porters 5 competitive forces
Key success factors
Offer and Supply by SBU

PESTEL ANALYSIS


The application of the banking law of 2006, relative to the rules of
Basel 2.


Political stability with regard to the countries of the region.


International agreements of free exchange.



POLITICAL ENVIRONMENT
The rate of bancarisation amounts to 47 % of the population in
2010.

The Moroccan banking sector develops a more competitive
activity, favorable to the decline of the rates.

Growth of the rate of savings of the households

ECONOMICAL ENVIRONMENT
The commitment to make of Morocco a regional platform of
production towards Europe, Asia and sub-Saharan Africa.

Banks are the main source which finances the Moroccan Economy.

A general increase of the credits against a sensitive decline of
The outstanding debts.

Increase of the demands of credits.









The marketing of the Islamic products.


Evolution of the habits of purchase of the Moroccan consumer.


The Moroccan consumer become more and more requiring











SOCIAL ENVIRONMENT


Bank transactions become faster and faster with the
developement of the technology.

The progressive use of the credit cards for cash
withdrawals and for the payment of the of purchases.


Introduction of new tools for the appreciation of the
risks as the SAAR system.



TECHNOLOGICAL ENVIRONMENT
At this level, nothing to indicate except about actions of the
banks of place which contribute to the environmental protection.
ECOLOGICAL ENVIRONMENT
The application of the banking law of 2006, relative
to the rules of Basel 2.

The application of the international accounting
standards IAS / IFRS.


The obligation to use the chart of accounts for credit
institutions.

LEGAL ENVIRONMENT
Porters five competitive forces
The competition is very rough within this sector due to the
presence of several banks who offer very close and similar
products.


The trust and the loyalty notion are present especially for
individual's who tend not to change a bank seen the reliable
relation which they establish with their banks.

Rivalry among competitive firms



Barriers in the entry to the banking sector are very complex and
difficult, it requires huge capitals and guaranties.


It is necessary to note the appearance of companies specialized
in certain products which were offered by banks as companies of
transfers of money and companies of exchange of currencies.



Potential entry of new competitors



The problem of the existence of products or services substitute to those
banking is low.


New companies conceive products and formulas which begin to compete
with the role of the bank account and the products offered by the
universal banks.



Potential development of substitute
products.




banks can face companies realizing a multitude of operations
daily, private individuals realizing important operations and
others realizing small operations.


Companies have a power of negotiation which is very strong,
seen the importance of the operations which they make without
forgetting that the majority of companies have accounts in
various banks and can so negotiate with several banks.





Bargaining power of consumers.

Grouping in pressure group as regards the private
individuals, Deposits(Warehouses) of professionals
(mainly companies) which keep(guard) a big power
of negotiation.


As regards the suppliers of computer hardware, the
suppliers of fixed assets, their power of negociation
is weak.




BARGAINING POWER OF SUPPLIERS
Key success Factors
Diversification of products and services
tailored to each customer categories
A low rate of doubtful or contentious.
A fine segmentation of customers.
corporate communication and highly
developed product.

The establishment of a customer-centric
business strategy.

Establishing a policy for managing customer
relationships: CRM.

A presence on the international market.


Life Cycle of banking Market
The size of the banking system and the banking rate
remains relatively low. Less than 16% of the total
population would have a bank account.The banking
rate depending on the working population would be
37.4%

So we can say that the Moroccan banking sector is
experiencing growth and promises better prospects
for development in the future

The investment in this phase is high as is the
case of the banking sector where banks invest
each year:
Local: news agencies
IT tools
Human Resources
Also, this phase is characterized by high prices,
and in the case of the banking sector this
amounts to interest rates prevailing which
remain considerable

Internal Diagnosis
The SBUs of BMCE
The Core competence of BMCE
The value chain
Financial Ration
SWOT Analysis
The SBUs of BMCE
BMCEBank : Commercial bank, whose mission is to
be a distribution network and a pole of expertise in
marketing.

The Bank of International : whose mission is to
promote the Group's share in international
operations and in the MRO segment.


BMCECapital : capping the banking business,
in charge of response activities on Capital
Markets, crafts market intermediation, asset
management, consulting and financial
engineering.

Core competence
The technical competence of its managers,
sifted from the supply market;
The internal cohesion of staff BMCE in a
culture unique to the bank;


The addition of an efficient system of
information management (EDM);
A performance standard is part of the broader
culture of this bank which is now celebrated
by the BB-rating agency World STANDARS &
Poors.

VALUE CHAIN OF BMCE

National network: 560 Agencies and Counters(Ticket offices)
Staff of the BMCE Bank: about 5000 co-workers
Innovative politics in all the range BMCE: credits of consumptions,
Management of Portfolio, insurances products.

computerized logistics
( computerized
banking Network) of
the BMCE offering a
better service to the
customers.

Products adapted to
segments:
Professionals,
Private individuals
and Young people


BMCE CALL Service
Margin


Financial indicators

The consolidated net result grows by 74 %, it
reaches 1,4 billion MAD.

Net income in Morocco grows by 30 % , it
reaches 660 millions MAD.


Debt(solvency) ratio : 12,6 %

A decline of the rate of contentious of the
activity Morocco in 4,6 % against a sector-based
average of 5,1 %,

Increase in Net Banking Income of nearly 13%
to more than MAD 3.7 billion as of June 30,
2010.

Improvement in operating efficiency, as cost
to income ratio dropped by 130 basis points to
58.8%.
SWOT Analysis
Strengths Weaknesses
Developed IT system
Loyal customers
Support of a global group
Corporate Communication-developed
Structure little evolutionary
Absence of a policy of retaining
customers.
Absence of mass communication on
products
Opportunities Threats
Growing market
Internationalization
Sector-Liberalization
Strong competition
-New entrants
-Erosion of margins