Tunisian public bank STB, on February 17, 2022, announced the sale of 500 thousand shares it held in the capital of Wifak Bank, a private bank specializing in Islamic finance.
This sale was the second in the month of February 2022. On the 10th of the same month, STB had sold 1,713,676 shares, still at the same unit price, for a total amount of more than 11.310 MD. Thus, in two months, STB will have collected more than 14.610 MD.
– STB leaves the Wifak ship to look elsewhere
This does not seem to have been the last one, since we learn that STB has finally settled its account in the capital of ICD bank and Hédi Ben Ayed, and has drawn the sum of about 30 MD. This exit does not seem to be motivated mainly by a need for equity capital, but rather by a concern for better targeting of its financial investments, and to improve their profitability.
In passing, it should be noted that even if its net banking income (NBI) had increased in June 2021 by 10 MD year-on-year, and that its gross operating income (GOI) had recovered to 2.7 MD after a negative GOI of more than 3.1 MD during the corresponding period of 2020, Wifak remained weighed down by its 11.592 MD of salaries (up by almost 3 MTD), its provisions of 2.5 MD (up by almost 1.5 MD year-on-year), the 2.1 MD of depreciation, not to mention the 4.3 MD of operating expenses which were also up.
Wifak had thus ended the first half of 2021 with a net profit of 2.7 MD which became a deficit of 0.234 MTD following accounting changes.
STB seemed, at the beginning, attracted by Islamic finance, but its investment did not seem profitable enough to maintain it.
And it is therefore, in a strategic reflection, and a concern to better target its investments, that the money from the sale of Wifak shares would go to strengthen the financial foundations of the STB Group, and a better positioning of the bank to consider better investments.
In the meantime, Wifak was able to quickly make up for this exit, since it declares the rise in power of Hédi Ben Ayed through SNCI (Société nouvelle de coupe industrielle), which went from 31.371% to 32.997% in the capital of this Islamic finance institution, for the amount of 3.22 MD.
– Strengthening SoniBank in Africa, and eyeing a representation in Libya
The STB therefore intends, from now on, to refocus on its own activity, if possible with other complementary activities and to strengthen its subsidiaries, in concretization of the strategy developed with the Ministry of Finance to “enhance the international position and develop the bank-insurance”.
At the 1st state-owned bank in Tunisia, we are thinking of the “SoniBank” created in 1990 with the help of the State of Niger, which has already developed in Benin, and that would like to set up in Gabon with the help of the parent bank, the STB. The latter is also thinking of a representation in Libya to accompany investment and exports to this immediate neighboring country.
“Our concern is to be able to take care of our clients at 360 degrees, because they may be inconvenienced by the debt lever.
We will then encourage them to strengthen their balance sheet, through our Sicars, STB Manager or other investment funds to be able to accompany them well,” says the management.
The oldest Tunisian bank (created in January 1957) thus confirms its ambition to become a major financial player in Africa, both for Africans and for Tunisian companies.
Otherwise, the STB group ended the year 2020, with 1.082 billion TND in banking operating income, an NBI of 621.279 TND and a profit of 68.413 TND.
At the individual level and for the first half of 2021, the 1st bank of Tunisia reported 532.7 MD in banking operating income, an NBI of 302.5 MD and a half-yearly profit of more than 59 MD, with a liquidity ratio of 134.9% last June. A bank that inspires confidence, since customer deposits amounted to more than 8.358 billion TND.
