The banking sector generated an exceptional net result of 1,142 million dinars (MD) in 2018, against 1,059 MD in 2017, due to the increase in the average monthly money market rate (MMR) and revenues on Treasury bills, said an annual report on banking supervision 2018 published by the Central Bank of Tunisia (BCT).
Profitability indicators were at generally satisfactory levels, with a return on assets (ROA) of 1.1% comparable to that of 2017.
The report noted that 18 banks posted a profit result with a cumulative profit of 1 227 MD in 2018, while 5 banks posted a deficit result amounting to 85 MD.
“The cumulative profit of 2018 was allocated up to 71.5% in reserves against 74.4% in 2017.
The amount of dividends reached 350 MD in 2018, i.e. 28.5% of profits against 25.6% in 2017″, the document underlines.
During the same year, banks continued their efforts to strengthen their equity capital which amounted to 10 337 MD but at a slower pace than in 2017 (10.8% against 16.7%) against a 10.4% increase in commitments.
This increase comes from 86.9% of retained earnings, 6.5% from capital increases and the rest from subordinated loans, i.e. 6.6%.
“Thanks to the prudent profit distribution policies adopted by most banks, the banking sector recorded a consolidation of the share of core capital to constitute 77% of net equity against 74.8% in 2017, which reflects the consistency of the quality of the banking sector’s equity capital,” the report on banking supervision 2018 further analyzed.
Indeed, the outstanding risks of the banking sector increased by 8,809 MD including 1,637 MD under market risks and this, following the rise of risks on foreign exchange positions, especially for those having the status of market maker.
According to the same report, market risks in 2018 were divided between foreign exchange risk (82%), interest rate risk (11%) and risk of position on property titles (7%).