Attijariwafa bank : Consolidated Accounts at 31 december 2021

Attijariwafa bank

as of December 31, 2021

Financial Communication

2021

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Contact : Financial Information and Investor Relations - Ibtissam Abouharia, e-mail :

Attijariwafa bank

A limited company with a capital of MAD 2,151,408,390. Head office : 2, boulevard Moulay Youssef, Casablanca, Morocco

Phone: [phone] or [phone] - TR 333 - IF 01085221

www.attijariwafabank.com

RESULTS at 31 December 2021

Attijariwafa bank's press release

Strong commitment to supporting clients and promote economic recovery,

improving earnings and a new "@mbitions2025" strategic plan

Attijariwafa bank's Board of Directors, chaired by Mr Mohamed El Kettani, met on 22 February 2022, in order to review the activity and approve the financial statements as of 31 December 2021.

iTotal consolidated assets	MAD	596.3 billion	+5.0 %
iConsolidated shareholders' equity	MAD	59.8 billion	+10.1 %
iNet banking income	MAD	24.4 billion	+2.2 %
i Net income	MAD	6.2 billion	+66.2 %
iNet income group share	MAD	5.1 billion	+70.5 %

N° 1 savings institution	N° 1 provider of financing to the economy
Total savings *	Total consolidated loans
	(billion MAD)		(billion MAD)
	547.3	333.7	345.1
508.7
	+7.6%		+3.4%
Dec 20	Dec 21	Dec 20	Dec 21
1st player in digital banking and electronic payements in Morocco
% of operations**	Number of connections on digital
processed through digital banking	platforms (in millions of connections)
81%	87%		257.1
		161.4
	+6 pts		+ 53.3%
2020	2021	2020	2021

1. Consolidated customer deposits + assets under management + bancassurance assets (**) Operations available on digital channels: eg: transfers, disposals, payment of invoices.

Key measures deployed to support the economy

since the beginning of the crisis

i12,000 young entrepreneurs funded1

i41% of total «INTELAKA» loans granted by the sector

• 37% of total «DAMANE OXYGENE»

loans granted by the sector1

i35% of total «DAMANE RELANCE» loans granted by the sector1

Attijariwafa bank releases its 2021 FY earnings in a mixed context marked by a strong economic recovery in its main markets but also by various geopolitical and socio-economic uncertainties on a global and regional scale.

STRONG COMMITMENT TO SUPPORTING

CLIENTS

In 2021, Attijariwafa bank continued to support and finance households, very small and medium-sized enterprises, large local and regional companies and institutional in its various countries of presence, helping to promote economic recovery.

In Morocco, the support to households and Very Small Enterprises could be illustrated by:

• Financing 12,000 young entrepreneurs' projects for an amount of MAD 2.7 billion within the "Intelaka" initiative (market share of 41%1),
• Disbursement of MAD 8.1 billion of new mortgage loans in FY2021 (+15% and +8% compared to FY2020 and FY2019 respectively) financing access to housing and boosting the real estate sector during this challenging period,
• Disbursement of MAD 21,5 billion of "Damane" loans granted to 51,605 enterprises (market share of 31%1),
• Disbursement of MAD 9.0 billion of "Damane Express", "Damane Attaysir", and "Damane Istitmar" loans financing 18,029 SMEs (market share of 72%1);
• Advising and supporting entrepreneurs and Very Small Enterprises through Dar Al Moukawil network and digital platform Daralmoukawil.com, generating 2.5 million connections and more than 7 million interaction on social networks.

PROGRESSIVE NORMALIZATION OF EARNINGS

Net banking income grew by 2.2% (+3.2% at constant exchange rates) to MAD 24.4billion. Net banking income growth was driven by the diversification of Attijariwafa bank's businesses and geographies:

• The Bank in Morocco, Europe and Tangier Offshore Banking Zone: +5.2% ;
• International Retail Banking: +2.5% (+5.4% at constant exchange rates) ;
• Specialized Finance Subsidiaries: +4.0% ;
• Insurance: -26.3% as result of the normalization of "automotive" business line claims ratio (after a significant improvement in 2020 related to health measures in Morocco).

Operating income rose +53.7% (+29.6%2) to MAD 9.5 billion thanks to rigorous cost control and to the gradual normalization of cost of risk (-33.9%).

Consolidated net income totaled MAD 6.2 billion up +66.2% (+38.9%2). Net income (Group share) rose by +70.5% (+39.2%2) to MAD 5.1 billion.

A ROBUST BALANCE SHEET

In 2021, the bank successfully completed two capital increases through optional conversion of dividends into shares, totaling MAD 2,1 billion (+50 bps of CET1). As of December 31st, 2021, Group shareholder equity totaled MAD 52,5 billion increasing by +9,7%. The consolidated Tier 1 ratio improved from 10.73% in 2020 (10.32% in 2019) to 11.23% in 2021 and Liquidity Coverage Ratio stood at 195% well above the regulatory minimum of 100% (198% in 2020 and 151% in 2019).

A NEW STRATEGIC PLAN: @MBITIONS2025

Attijariwafa bank launched a new strategic plan @MBITIONS 2025 in a challenging context marked by radical changes on a global scale (e.g., geopolitical, economic and technological transformations, climate change emergency, changing customer expectations...) leading to new threats and opportunities for the banking industry. @MBITIONS 2025 has been structured around 3 major ambitions:

• Reinforcing Attijariwafa bank's position as a leading African banking and financial group in order to generate responsible and sustainable growth in its regions of presence and in new territories;
• Positioning Attijariwafa bank as an innovative, agile and "relationship-focused" bank leveraging on disruptive digital and Big-Datatechnologies and on group synergies;
• Further alignment with the best international standards in terms of operational efficiency, risk control and compliance, to ensure a sustainable growth.

The Board of Directors congratulated all the Group's teams for their commitment and their mobilization in favor of customer in a still very challenging environment.

The Board resolved to convene the Ordinary General Shareholders' Meeting, submit for approval the financial statements as of December 31st 2021, and propose a dividend per share of 15 Dirhams.

The Board of Directors

Casablanca, February 22, 2022

1. Market share in number of loans granted to enterprises since the beginning of "Damane" programs.
2. Adjusted for the cost of contribution to the special Covid-19 fund in 2020.

Attijariwafa bank	Results at 31 December 2021	5

FINANCIAL STATEMENTS

Consolidated Accounts at 31 December 2021

ACCOUNTING STANDARDS AND PRINCIPLES APPLIED BY THE GROUP

1.1 Context

Attijariwafa bank's consolidated financial statements have been prepared under International Financial Reporting Standards (IFRS) since first-half 2007 with the opening balance at 1 January 2006. In its consolidated financial statements as of 31 December 2021, the Attijariwafa bank Group has applied the mandatory principles and standards set out by the International Accounting Standards Board (IASB).

1.2 Accounting standards applied

1.2.1 Consolidation principles :

Standard :

The scope of consolidation is determined on the basis of what type of control (exclusive control, joint control or material influence) is exercised over the various overseas and domestic entities in which the Group has a direct or indirect interest.

The Group likewise consolidates legally independent entities specifically established for a restricted and well-defined purpose known as « special purpose entities », which are controlled by the credit institution, without there being any shareholder relationship between the entities. The extent to which the Group exercises control will determine the consolidation method: fully consolidated for entities under the exclusive control of the Group as required by IFRS 10 "Consolidated Financial Statements" or under the equity method for associate companies or joint ventures as required by IFRS 11 "Joint Arrangements" and IAS 28 "Investments in Associates Joint Ventures".

Policies adopted by Attijariwafa bank :

Attijariwafa bank includes entities in its scope of consolidation in which:

• It holds, directly or indirectly, at least 20% of the voting rights (existing or potential);
• The subsidiary's consolidated figures satisfy one of the following criteria:
• • The subsidiary's total assets exceed 0.5% of consolidated total assets;
  • The subsidiary's net assets exceed 0.5% of consolidated net assets;
  • The subsidiary's sales or banking income exceed 0.5% of consolidated banking income.

Specialist mutual funds (UCITS) are consolidated according to IFRS 10 which addresses the issue of consolidation of special purpose entities and in particular funds under exclusive control. Those entities controlled or under exclusive control whose securities are held for a short period of time are excluded from the scope of consolidation.

1.2.2 Fixed assets :

Standard :

Items of property plant and equipment are valued by entities using either the cost model or the revaluation model.

Cost model

Under the cost model, assets are valued at cost less accumulated depreciation.

Revaluation model

On being recognised as an asset, an item of property, plant and equipment, whose fair value may be accurately assessed, must be marked to market.

is the value determined at the time the asset is marked to market less accumulated depreciation.

The sum-of-partsapproachbreaks down the items of property, plant and equipment into their most significant individual parts (constituents). They must be accounted for separately and systematically depreciated as a function of their estimated useful lives in such a way as to reflect the rate at which the related economic benefits are consumed.

Estimated useful life under IFRSis the length of time that a depreciable asset is expected to be usable.

The depreciable amount of an asset is the cost of the asset (or fair value) less its residual value.

Residual valueis the value of the asset at the end of its estimated useful life, which takes into account the asset's age and foreseeable condition.

Borrowing costs

The IAS 23 standard entitled « Borrowing costs » does not allow to recognise immediately as expenses the cost of borrowing directly attributable to acquisition, construction or production of an eligible asset. All the costs of borrowing must be added into the exp.

Policies adopted by Attijariwafa bank :

The Group has opted to use the cost model. The fair value method may be used, however, without having to justify this choice, with an account under shareholders' equity.

Attijariwafa bank has decided against using several depreciation schedules but a single depreciation schedule in the consolidated financial statements under IFRS standards. Under the sum-of-parts approach, the Group has decided to not include those components whose gross value is less than MAD 1000 thousand.

• Historical cost (original cost) is broken down on the basis of the breakdown of the current replacement cost as a function of technical data.

Residual value :

The residual value of each part is considered to be zero except in the case of land. Residual value is applied only to land (non amortisable by nature), which is the only component to have an unlimited life.

1.2.3 Investment property :

Standard :

An investment property is a property which is held either to earn rental income or for capital appreciation or for both. An investment property generates cash flows in a very different way to the company's other assets unlike the use of a building by its owner whose main purpose is to produce or provide goods and services. An entity has the choice between :

The fair value method: if an entity opts for this treatment, then it must be applied to all buildings ;

The cost model

An estimate of the fair value of investment properties must be recorded either in the balance sheet or in the notes to the financial statements. It is only possible to move from the cost method to the fair value method.

Policies adopted by Attijariwafa bank :

All buildings not used in ordinary activities are classified as investment property except for staff accommodation and buildings expected to be sold within a year. The Group's policy is to retain all buildings used in ordinary activities and those leased to companies outside the Group. The historical cost method, modified by the sum-of-parts approach, is used to value investment properties. Information about fair value must be presented in the notes to the financial statements.

1.2.4 Intangible assets :

Standard :

An intangible asset is a non-monetary asset which is identifiable and not physical in nature. An intangible asset is deemed to be identifiable if it:

• Is separable, that is to say, capable of being separated and sold, transferred, licensed, rented, or exchanged, either individually or together with a related contract or;
• Arises from contractual or other legal rights, regardless of whether

those rights are transferable or separable from the entity or from other rights and obligations.

Two valuation methods are possible:

• The cost method;
• The revaluation model.

This treatment is possible if an active market exists. Amortisation of an intangible asset depends on its estimated useful life. An intangible asset with an unlimited useful life is not amortised but subject to impairment testing at least once a year at the end of the period. An intangible asset with a limited useful life is amortised over the life of the asset. An intangible asset produced by the company for internal use is recognised if it is classified, from the R&D phase, as a fixed asset.

Policies adopted by Attijariwafa bank :

Attijariwafa bank has decided against using several amortisation schedules but a single amortisation schedule in the consolidated financial statements under IFRS/IAS.

Acquisition costs not yet amortised as expenses at 1 January 2006 have been restated under shareholders' equity.

Leasehold rights :

Leasehold rights recognised in the parent company financial statements are not amortised. In the consolidated financial statements, they are amortised using an appropriate method over their useful life.

Business goodwill :

Business goodwill recorded in the parent company financial statements of the different consolidated entities has been reviewed to ensure that the way in which it is calculated is in accordance with IAS/IFRS.

Software :

The estimated useful life of software differs depending on the type of software (operating software or administrative software).

Valuation of software developed in-house: Group Information Systems' Management provides the necessary information to value software developed in-house. In the event that the valuation is not accurate, then the software cannot be recognised as an asset. Transfer fees, commission and legal fees: These are recognised as expenses or at purchase cost depending on their value. Separate amortisation schedules are used if there is a difference of more than MAD 1000K between parent company financial statements and IFRS statements.

1.2.5 Goodwill :

Standard :

Cost of a business combination :

Business combinations are accounted for using the acquisition method according to which the acquisition cost is contingent consideration transferred in order to obtain control.

The acquirer must measure the acquisition cost as:

• The aggregate fair value, at the acquisition date, of assets acquired, liabilities incurred or assumed and equity instruments issued by the acquirer in consideration for control of the acquired company ;
• The other costs directly attributable to the acquisition are recognised through profit or loss in the year in which they are incurred.

The acquisition date is the date at which the acquirer obtains effective control of the acquired company.

Allocation of the cost of a business combination to the assets acquired and to the liabilities and contingent liabilities assumed:

The acquirer must, at the date of acquisition, allocate the cost of a business combination by recognising the identifiable assets, liabilities and contingent liabilities of the acquiree that satisfy the recognition criteria at their respective fair values on that date.

Any difference between the cost of the business combination and the acquirer's share of the net fair value of the identifiable assets, liabilities and contingent liabilities is recognised under goodwill.

Accounting for Goodwill:The acquirer must, at the date of acquisition, recognise the goodwill acquired in a business combination.

• Initial measurement : this goodwill must be initially measured at cost, namely the excess of the cost of the business combination over the acquirer's share of the net fair value of the identifiable assets, liabilities and contingent liabilities.
• Subsequent measurement: following initial recognition, the acquirer must measure the goodwill acquired in a business combination at cost less cumulative impairment subsequent to annual impairment tests or when there is any indication of impairment to its carrying value.

If the share of the fair value of the assets, liabilities and contingent liabilities of the acquired entities exceeds the acquisition cost, negative goodwill is recognised immediately through profit or loss. If initial recognition of a business combination can be determined only provisionally by the end of the reporting period in which the business combination takes place, the acquirer must account for the business combination using provisional values. The acquirer must recognise adjustments to provisional values relating to finalising the recognition within that financial period, beyond which time no adjustments are possible.

Policies adopted by Attijariwafa bank :

• Option taken not to restate the existing goodwill at 12/31/05, in accordance with the provisions of IFRS 1 "First-Time Adoption" ;
• Goodwill amortisation is discontinued when the asset has an indefinite life in accordance with amended IFRS 3 "Business combinations";
• Regular impairment tests must be carried out to ensure that the carrying amount of goodwill is below the recoverable amount. If not, an impairment loss must be recognised;
• the Cash Generating Units mirror the segment reporting to be presented at Group level ; these are the banking business and the insurance business ;
• The recoverable amount is the higher of the unit's value in use and its carrying amount less costs of disposal. This is used in impairment tests as required by IAS 36. If an impairment test reveals that the recoverable amount is less than the carrying amount, then the asset is written down by the excess of the carrying amount over its recoverable amount.

1.2.6 Lease contracts :

Standard :

In January 2016, the IASB published IFRS 16, its new accounting standard on leases, which replaced IAS 17 standards and related interpretations IFRS 16 implementation from January 2019 removes the distinction between "operating lease" and "finance lease". As of now, leases contracts are all accounted in the same way. The leased asset shall be recognized as right of-use asset and the financing commitment as a lease liability. The right of use is amortized on a straight line bases through P&L, and the lease liability is amortized using the declining balance method over the lease term contract.

Policies adopted by Attijariwafa bank :

Transition According to IASB, IFRS 16 first time application can be done through 2 approaches:

Attijariwafa bank	Results at 31 December 2021	7

• The full retrospective approach : this approach effectively restates the financial statements as if IFRS 16 had always been applied,
• The modified retrospective approach with 2 options
• • measure the right of use and the lease liability of the remaining lease payments from January 1, 2019 to the lease term (cumulated retrospective approach)
  • measure that right-of-use asset as if IFRS 16 had been applied since the commencement date of the lease and measure the lease liability as the sum of discounted remaining lease payments (simple retrospective approach)

The transition approach elected by Attijariwafa bank group is the modified approach option cumulated retrospective approach. This approach does not generate impact on equity. Therefore, 2018 comparative information has not been restated.

Threshold exemption :

1. lessee may elect not to recognize a right-of-use asset and a lease liability to:

• Contracts with term less than 12 months if it does not include a purchase option at the end of the term;
• Contracts with an underlying asset value equal or lower to the limit defined by the lessee. IASB suggested a 5000 kUSD limit. Attijariwafa Bank group elected both exemption types to implement IFRS 17.

Lease term :

Lease term is defined as the period for which the contract is enforceable. A lease is no longer enforceable when the lessee and the lessor each have the right to terminate the lease without permission from the other party with no more than an insignificant penalty.

Enforceable term, or non-cancellable term, can be increased with:

• Optional period of contract renewal where it is reasonably certain that the option will be exercised
• Period following optional periods of contracts renewal where it is reasonably certain that the option will not be exercised.

Lease term according to IFRS 16

	non-cancellable	Optional	Subsequent
Term	terms to
term	extention terms	cancellation
			options
		Lessee reasonably	Lessee reasonably
		certain to exercise	certain to not
		the renewal option	exercise the
			cancellation option

Lease terms defined by Attijariwafa Bank group are as follows :

Type of leased asset	Lease term
Commercial rental	9 years
Residential rental	3 years
Temporary occupation of public property	20 years
Construction rental	20 years

As for rights of use, the payments to be retained correspond to the initial value of the rental debt, plus initial direct costs, prepayments and restoration costs.

Due to the adoption by the Attijariwafa bank group of the modified retrospective approach, the right of use has been valued, at the time of the first application of IFRS 16, at the value of the rental debt as described above.

• Leases :

According to IFRS 16, the lease payments included in the measurement of the lease liability comprise the following payments:

1. Fixed lease payments.
2. Variable lease payments that depend on an index or a rate.

1. Amounts expected to be payable by the lessee under residual value guarantees.
2. The exercise price of a purchase option if the lessee is reasonably certain to exercise that option.
3. Payments of penalties for terminating the lease, if the lease term

reflects the lessee exercising an option to terminate the lease.

The cost of the right-of-use asset shall comprise the amount of the initial measurement of the lease liability increased by initial direct costs, payments made in advance, and restoring the underlying asset costs. As Attijariwafa Bank group elect the modified retrospective method, the right-of-use has been evaluated for the first-time application as the lease liability as defined above.

• Discount rate :

The lease payments used to estimate the right-of-use or the lease liability shall be discounted using one of the following rates:

• The implicit interest rate in the lease i.e. the rate of the lease contract.
• If that rate cannot be readily determined, the lessee shall use the lessee's incremental borrowing rate i.e. the rate of interest that a lessee would have to pay to borrow over a similar term, and with a similar security, the funds necessary to obtain an asset of a similar value to the right-of-use asset.

The discount rate chosen by Attijariwafa Bank to evaluate is lease contract is the incremental borrowing rate. This rate rely on 3 components :

• Reference rate
• Risk premium
• Individual adjustment from the lease contract.

1.2.7 Financial assets and liabilities - Classification and measurement :

Standard :

Classification

Classification Financial assets, except those related to insurance activities, are classified in the following 3 accounting categories :

• Amortised cost
• Fair value through other comprehensive income ("FVOCI")
• Fair value recognized in profit and loss ("FVPL")

The classification of a financial asset in one of these three categories is based on the following criteria:

• type of the asset held (debt or equity instrument);
• for debt instruments on the basis of both (i) contractual cash flows of the asset (SPPI: solely payment of principal and interest) and (ii) the business model defined by the company. The business models are based on how the company manages its financial assets to generate cash flows and create value.

Debt instruments

This standard distinguishes three business models :

• "hold to collect" model: assets managed to collect contractual cash flows;
• "hold to sell" model: assets managed to sell the financial assets;
• "mixed" model: assets managed to collect contractual cash flows and sell the financial asset

The allocation of debt instruments to one of these models is made on the basis of how the groups of financial instruments are managed collectively in order to determine the economic objective. The identification of the economic model is not made instrument by instrument, but rather at the portfolio level of financial instruments, particularly through the analysis and observation of:

• the measurement method, monitoring and risk management associated with the financial instruments concerned;
• realized and expected asset sales (size, frequency, type).

Equity instruments

Investments in equity instruments are classified as "financial assets at fair value through profit or loss" or as " Non recyclable equity at fair value". In this last case, when securities are sold, unrealized gains and losses previously recognized in equity will not be recognized through profit or loss will not be recognized in profit or loss.

Only dividends will be recognized in profit or loss.

Investments in mutual funds do not meet the definition of equity instruments as they are puttable to the issuer. They do not meet the cash flow criterion either, and thus are recognized at fair value through profit or loss.