Attijariwafa Bank Europe

Attijariwafa Bank Europe

Frankfurt am Main

Befreiender Jahresabschluss zum Geschäftsjahr vom 01.01.2023 bis zum 31.12.2023

Attijariwafa Bank Europe

Paris/Frankreich

CONTENTS

I. HIGHLIGHTS OF THE YEAR

II. KEY DATA

III. PLANNED ALLOCATION OF NET INCOME

IV. MISCELLANEOUS

V. PROSPECTS

VI. RESULTS FOR THE LAST FIVE YEARS

VII. APPENDIX / LIST OF CORPORATE OFFICERS

VIII. BUSINESS RISK

IX. EVENTS FOLLOWING YEAR-END

X. RESEARCH AND DEVELOPMENT

XI. DIVIDEND DISTRIBUTION

I. ATTIJARIWAFA BANK EUROPE - HIGHLIGHTS OF THE YEAR 2023

The highlights of 2023 for the entity and the actions resulting from the new business model, "Empulse2025", are detailed below:

Attijariwafa bank Europe continues to deploy its New Business Model 2021-2025, which combines the challenges of diversifying revenue sources, making activities profitable and securing risks. In 2023, having successfully completed a crucial stage of upgrading its IS and Electronic Banking foundations, Attijariwafa bank Europe has adapted its NBM programme to the challenges of the coming period. This development programme focuses on the following main areas:

Corporate & Investment Banking:

The upgrading of the International Banking system, with the deployment of the Target 2 project, to ensure a quality of service in line with international standards and capture new pockets of value in the Correspondent Banking and Trade activities.

Risks and controls:

Continued rigorous risk management and integration of regulatory changes.

AML/CFT and financial security controls are still being strengthened by upgrading tools and improving filtering and control processes.

Amplitude Up migration:

During the 2023 financial year, Attijariwafa Bank Europe finalised the roll-out of the Amplitude Up solution (upgrade of the core banking system) throughout Europe with a migration in May 2023 for France and in November 2023 for Belgium. The migration of the bank reconciliation module gave rise to problems with the settings and automatic lettering, resulting in an increase in the number of reconciling entries in the correspondents' bank accounts.

A dedicated committee has been set up from May 2023 to identify the reasons for these anomalies, define the action plans to be carried out and monitor the progress of the outstanding items.

Corporate project:

Attijariwafa bank Europe is also continuing to roll out its corporate project, launched in 2021. The idea being:

Having achieved its main objective of rewriting a new page in the subsidiary's history with all its employees, Attijariwafa bank Europe has formalised its vision, ambition, mission and raison d'être, which it communicated to all its employees at the convention organised in March 2023. Attijariwafa bank Europe is pursuing this corporate project by identifying ways of anchoring this new culture in everyone's day-to-day professional life.

Organisation:

In 2023, Mr Younes BELABED replaced Mr Abdelaziz YAAQOUBI as Chief Executive Officer of Attijariwafa bank Europe.

II. KEY DATA

Assets as at 31 December 2023

• Application of funds 2023/2022

At 31 December 2023, Attijariwafa Bank Europe's balance sheet stood at €807m, declining 19% compared with 2022.

In 2023, outstanding amounts due from credit institutions totalled €463m, compared with €537m in 2022, a fall of around €74m. This change is due to the €19m fall in ordinary bank overdrafts and the €55m fall in loans and term accounts over 2023.

Loans over night with central banks €207m.

On the employment side, the change was due to a €65m fall in outstanding in the Global Trade Finance business (drafts - €26m, buyer credit -€7m and financial loans -€33m), with customer accounts receivable up by €7m.

Property, plant and equipment fell by 10% to €8.5 million, mainly due to depreciation charges for the year of €1,637k, with total outgoings of €761k and investments for the 2023 financial year of €1,730k.

Other assets fell by 4% to €24,882k. They mainly include invoiced receivables from the Group.

Accruals and deferred income include all provisions for re-invoicing. The decrease is due to a drop in accrued income of €3m over 2023.

• Allocations of accounts receivable based on residual time, excluding accrued interest and doubtful accounts

• Investment portfolio:

At 31 December 2023, the investment securities portfolio consisted of 27 securities denominated in Euros with a total nominal value of €188m and 5 securities denominated in dollars with an equivalent nominal value of €21.7m.

The following changes were recorded in 2023:

This holding reflects the bank's intention to invest part of its structural cash surplus over the long term (held to maturity).

^* Fixed-rate interest-bearing securities backed by an interest-rate hedging instrument.
^** the nominal value of securities at 31.12.2022 is converted at the closing rate at 31.12.2022, and at the closing rate at 31.12.2023 for the other columns.

Liabilities as at 31 December 2023

Amounts owed to credit institutions fell by 35% (-€213m) to €391m, mainly as a result of a €143m fall in ordinary accounts payable and a €70m fall in term loans (including €29m in cash collateral).

Customer transactions were up 5% to €332m at 31 December 2023:

Other liabilities increased by 6%.

Accruals and deferred income amounted to €10.8m at 31 December 2023, down 2% mainly due to collection operations.

Provisions for liabilities and charges amounted to €826k, up 30% compared with 2022.

Shareholders' equity at 31 December 2023 was €57,556k, up 5% or €2,737k. This increase is mainly due to the increase in the positive result achieved over the last 2 years, + €2,095 M in 2023.

• Allocation of ressources 2023/2022

Clients' resources represent 47% of refinancing as at 2023.

Cash resources account for 54% of refinancing compared with 53% in 2022.

At the end of 2023, the structure of client deposits is as follows:

• Distribution of debts on residual time

NB: Deposits from clients and credit institutions, though of unfixed term, were classified as demand debts.

Off-balance sheet as at 31 December 2023

Commitments given are down by 13% in 2023 to €220m, with outstanding financing commitments down by 7% to €131m and outstanding guarantee commitments down by 20% to €90m.

Commitments received fell by 27% to €197m in 2023 from €270m in 2022, including a -34% decrease in guarantee commitments.

Income statement as at 31 December 2023

✓ Net banking income

Net banking income was €55,168k compared with €48,186k in 2022, showing an increase of 14%.

The contribution of the various entities in the NBI of AWBE:

The net banking income is as follows:

✓ Overall operating costs

Operating costs amounted to €50,648 K and are distributed as follows:

Personnel costs were up 11%, mainly due to the signing of an inflation agreement and the payment of a PPV bonus.

Operating expenses, including overheads, also rose by 8%, with a number of project-related expenses in 2023 (New Business Model and compliance).

These expenses break down by geographical area between France and the 4 branches as follows:

III. PROFIT ALLOCATION PLAN

The positive result for 2023 of €2,737,054.55 will be allocated in full to retained earnings.

Retained earnings will therefore fall from €-7,376,070.92 in 2023 to €-4,639,016.37 in 2024.

IV. MISCELLANEOUS

In compliance with Section L.441-14 and D.441-6 of the French Commercial Law, AWBE presents hereafter the information on the payment terms of suppliers. Bank and related transactions are not included in payment deadlines.

✔ Time of payments to suppliers:

✓ Customer payment terms:

The information on customer payment terms is not relevant to the banking activity of the company Attijariwafa bank Europe. In this context, no information is mentioned on this subject.

✓ Massive expenditure: No massive expenditure was incurred in 2023.

✓ With regard to the provisions of Article L.225-102-1 of the French Commercial Code, which aims to mention, in the management report, the agreements concluded directly or through an intermediary between, on the one hand, the Chief Executive Officer, one of the directors or one of the shareholders holding more than 10% of the voting rights of a company and, on the other hand, another company in which the latter holds, directly or indirectly, more than half of the capital: no agreement meets these criteria for the 2023 financial year.

V. PROSPECTS 2024

As for 2023, Attijariwafa bank Europe's New Business Model continues to be deployed.

The outlook for 2024 is refocused on the commercial activities of this New Business Model.

Digital:

Developing the digital offering for individual and business customers as part of a Customer Centricity approach.

Migrant Banking:

Develop the Migrant Banking business and intensify the Retail business via i) the development of the offering, distribution channels and support system and ii) the regeneration of business

Corporate & Investment Banking:

Expansion of the Corporate offering and diversification of Capital Markets activities.

VI. SCHEDULE OF PROFIT AND LOSS IN THE PAST FIVE YEARS

⁽¹⁾ As of 31 December 2023, the capital is made of 3,082,009 shares of a unit nominal value of €20 each, for a total sum of €61,640K. Income tax amounted to €622K and net profit to €2,737K.

VII. APPENDIX: List of corporate officers of AWBE and their titles

VIII. Business risk year-end on 31.12.2023

The bank activity of AWBE does not present any significant risks, exception the risk with Retail banking. However, the bank's corporate activity consumes a great deal of the equity capital.

AEF shareholder's equity €49,390K

/

Global weighed risks of €234,469K

XI. Events following year-end on 31.12.2023

None

X. Research and development as at 31.12.2023

None

XI. Dividend Distribution

A provision of €80k has been made for attendance fees in respect of the 2023 financial year.