Union Internationale de Banques (UIB) has just published its interim financial statements for the six months to 30 June 2023, which show a 14% fall in half-year net profit to 57.8 million dinars, compared with 67.2 million dinars at the end of June 2022.
This decline is mainly due to the sharp rise in the cost of risk and operating expenses. Net allocations to provisions more than doubled between June 2022 and last June, rising from 14 million dinars to 28.8 million.
Similarly, staff costs rose by 11.4% to 94 million dinars, compared with 84.3 million dinars in the first half. General operating expenses grew by 8% to 28.6 million dinars.
On the operating side, the bank generated income from banking operations of around 423.8 million dinars, compared with 360 million dinars a year earlier, representing growth of 17.7%. Banking operating expenses rose from 125.1 million dinars to 167.9 million, an increase of 34%.
As a result, Net Banking Income (NBI) amounted to 255.8 million dinars in the first half of the year, compared with 235 million dinars at the end of June last year, an increase of 9%.
Given the sharp rise in provisions and operating expenses, operating profit for the period fell by 4.8%.
