Morocco's PCP bank to buy 50.1 pct of Upline

RABAT, Oct 31 (Reuters) - Morocco's Banques Populaires Group (BCP.CS), one of Morocco's biggest banking groups, said on Friday it will buy a 50.1 percent stake in Upline Group, the country's second largest independent investment bank.

"BCP group and Upline Group have signed a protocal of accord on Oct. 29, 2008 with the aim of forging together a strategic partnership in investment banking," BCP said in a statement.

The initial partnership under which BCP will own 50.1 percent stake in Upline would be finalised before Dec. 31 when financial authorities grant the required authorisations, it added.

"This operation will permit BCP Group to hold 50.1 percent stake and voting rights in Upline Group," the bank said, without giving any price information.

BCP plans to merge Upline Group with affiliates of its investment and retail banking arm Banque Centrale Populaire and then turn Upline into its investment banking subsidiary, it added.

BCP has been expanding its branch network rapidly to capture sharp growth in client numbers after a gradual improvement in the health of Morocco's banking sector pushed down interest rates and stimulated demand.

Only a minority of Moroccans have bank accounts, and many are taking out mortgages for the first time after the government made it easier for people on modest incomes to buy homes, seeking to eradicate slums and improve living standards.

BCP opened 81 branches last year, taking the total to 690 -- the biggest retail network of any Moroccan bank.

The group is made up of 11 customer-owned regional lenders and Banque Centrale Populaire (BCP), a central arm that manages the regional banks' excess funds and the group's big corporate accounts.

BCP group named Al Istitmar Chaabi mangement funds, Al Wassit brokerage and Mediafinance retail banking, as the three affiliates to be merged into Upline to create the investment banking arm. (Reporting by Lamine Ghanmi; Editing by Quentin Bryar)