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HomeNewsTunisia: non-resident banks report net income of $ 29 million in 2016

Tunisia: non-resident banks report net income of $ 29 million in 2016

Non-resident banks (7 banks) in Tunisia saw their overall net income rise by 44.5% in 2016 to $ 28.9 million from $ 20 million a year earlier.
This increase is mainly due to a provision reversal by a local bank, according to the Central Bank’s Annual Report on Banking Supervision.
The year 2016 saw a decline in non-resident bank operations at a faster pace than in 2015, i.e. 12.2% against 4.3% in 2015.
This decline affected both loans (-21, 7%) and treasury operations (-9.7%). Outstanding loans thus reached $ 416 million at the end of 2016 compared with $ 531 million the previous year.
The credit structure saw a decrease in the share of loans granted to non-residents in 2016 by 5.9 percentage points to 52.9%.
In 2016, the resources of non-resident banks continued their downward trend recorded since 2013, i.e. -5% (versus -20.3% in 2015).
This decline mainly concerned customer deposits (-8.7%) and bank loans (-7.5%). Outstanding deposits amounted to $ 671 million compared to $ 735 million in 2015.
Compared with 2015, the share of customer deposits in the resource structure went down by 2.1 percentage points to 52.2%.
Outstanding loans in 2016 fell by $ 17 million to $ 320 million, of which $ 262 million (81.9%) went to a bank that, according to the report, is experiencing difficulties related to regional conditions.
The share of classified claims thus worsened by 0.7 percentage points compared to 2015, reaching 40.3%. Excluding this bank, the share of classified claims would be 13.9%.
The rate of coverage of loans classified by provisions has decreased by 0.3 percentage points to 69.5%.
In 2016, the interest margin and net banking income of non-resident banks remained at the same level as 2015, at $ 17.8 million and $ 59.7 million, respectively.
The net banking income structure of non-resident banks remains concentrated on net foreign exchange gains and net commissions, which account for 36.3% and 25.1%, respectively.
However, it should be noted that net commissions decreased sharply by 30.9% ($ 6.7 million) due to the sharp decline in signature commitments by 52.5% ($ 447 million) to represent only a quarter of operations at these banks, knowing that they accounted for almost half of them.
As a result of the increase in operating expenses, the cost / income ratio deteriorated to 43.6% in 2016 compared to 43.1% in 2015.
Despite the increase in profit generated in 2016, non-resident banks ‘net shareholders’ equity virtually stagnated at 99.1 million dinars.
Taking into account the decrease in risks incurred by $ 34.7 million (6.9% at the end of 2016), the solvency ratio of non-resident banks improved by 1.5 percentage points to 21.2% against 19.7% in 2015.
The non-resident banking sector is made up of 4 banks (TIB, NAIB, LINC15 and ALUBAF) and 3 branches (Citibank, ABC, TFB).
The shareholding structure is still dominated by foreign shareholders who take 80.7% of the capital of these banks, particularly the Libyan shareholders.
The state is present in one of these banks up to 19.3%.


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