...The first half of 2019 saw particularly weak growth, with sector deposits up by just 1% and lending up by 3%. Deposit inflow slowdown is new and reflects low remuneration rates and increased exchange-rate volatility. This results in falling bank savings held by non-resident Moroccans, which account for 20% of sector deposits. One-off VAT-related lending boosted loan growth in 2018, but core trends were already weak as affordability problems reduce demand for retail mortgages and weak macro-economic conditions depress demand for corporate borrowing. CIH is the only bank to buck the trend, with deposits and loans up respectively 5% and 10% in 1H19, reflecting good digital savings products and diversification into corporate lending....
