Morocco banking sector remains dominated by three leading banking groups

Morocco’s banking sector remained heavily concentrated in 2025, with three major banking groups accounting for nearly two-thirds of customer loans, deposits, and total banking assets, according to the latest Financial Stability Report published by Bank Al-Maghrib, the Moroccan Capital Market Authority, and ACAPS.

The report shows that the country’s three privately owned systemically important banks, backed mainly by Moroccan capital, held 59.9% of total banking sector assets during 2025. They also accounted for 63.2% of net customer loans and 62.1% of customer deposits, highlighting their central role in financing the national economy.

These institutions maintained a strong domestic and international footprint. Together, they operated 2,955 branches across Morocco while expanding their presence abroad through 51 subsidiaries and 22 international branches.

The report points to a continued recovery in banking intermediation during 2025, driven primarily by the country’s largest banking groups. Total banking assets increased by 8.2% to MAD 2,323 billion, representing 136% of Morocco’s gross domestic product, compared with 134% one year earlier. The growth matched the pace recorded in 2024 and was largely supported by stronger lending activity.

Participatory banking also sustained its rapid expansion. Total assets in the segment rose by 24.7% to MAD 48.5 billion, compared with MAD 38.9 billion in 2024, reflecting growing demand for Islamic finance products.

Customer lending continued to strengthen across the banking industry. Loans increased by 6.9% during 2025, while customer deposits grew by 7.7%. Asset quality also showed a slight improvement as the ratio of non-performing loans declined to 8.3%, compared with 8.4% a year earlier. The sector maintained a loan-loss coverage ratio close to 68%.

Deposits continued to grow despite moderating compared with previous years. Total customer deposits reached MAD 1,390 billion. Demand deposits expanded by 10.5% to MAD 1,019 billion and represented 73% of total deposits, confirming the preference for highly liquid savings.

Savings accounts increased by 2.5% to MAD 192 billion, while term deposits declined by 4.4% to MAD 132 billion. Their share of total deposits fell to 9%, down sharply from 22% recorded a decade ago, reflecting a long-term shift in customer saving behavior.

The report concludes that Morocco’s banking sector remains resilient. Its activity, profitability, liquidity, and capital indicators continue to demonstrate solid fundamentals and the capacity to withstand potential economic and financial shocks.