In midst of an economic crisis, BIAT increases its profits by 321.6% over the period 2015-2022

The financial statements and appended notes approved by the auditors of the Banque Internationale Arabe de Tunisie (BIAT) issued on the site of the Financial Market Council (CMF) indicate that the bank’s profits have risen, given the effect of the consumer price index, over the period 2015-2022 of 321.6%.

According to data from the latest half-yearly financial statements of the bank and despite the problems of companies, especially SMEs and the reduction in the purchasing power of Tunisians, BIAT’s profit reached a record never before registered in the banking sector at 222.9 million. dinars (MD) for the first half of 2023 against 208.7 MD during the same period of the previous year and 299.7 MD for the whole year 2022.

This increase in the half-year result is primarily due to the increase in banking operating income during the period June 2022 – June 2023 from 872.2 to 1056.6 MD, i.e. an upsurge of 184.4 MD or 21.1% due in particular to the increase in interest received on loans given to the State and financial transactions (96.1 MD), interest and similar income (678.1 MD) and commissions received (124.6 MD).

Therefore , the value of the increase in banking operating expenses which was restricted to 364.4 MD permitted the recording of an increase in net banking income during the first half of 2023 of 94.5 MD or 15, 8%.

Regardless, the bank’s enthusiasm for the development of its operating activity has affected its role as a player boosting investment since the flow of cash from investment activity declined in the first half of the year, after published data, 56 MD.

In this context and in terms of commitments, mortgages and buyers monopolize a substantial part of receivables from customers, amounting to 3245 MD at the end of last June, while commercial and industrial loans are about 6890 MD . Customer debtor accounts are valued at 1221.2 MD.

In addition, staff costs rose between June 2022 and June 2023 from 128.4 MD to 145.3 MD, therefore registering an increase of 16.9 MD while general operating expenses grew by 11.4 MD at 102.9 MD.

It should be reported that the World Bank (WB) indicated in its report “The Unfinished Revolution: Creating Opportunities, Quality Jobs and Wealth for all Tunisians” that the capacity to give credit to the economy stays low in Tunisia, particularly in comparison with the banking systems of neighbouring economies, such as Morocco, and frail credit intermediation is a brake on the country’s economic performance.

The WB assures that moreover, while ordinary businesses stumble to access financing, circles close to power have had easy access at suitable rates and with very weak guarantees.