banking

Restructuring plan helped STB to overcome difficulties (Board Chair)

March 21, 2021

(TAP / Khadija Bousselmi) - The restructuring of the STB Bank, whose capital is held at 83% by the state, has helped overcome the difficulties and bring its indicators out of the red zone, said the bank's managing director and Board Chair Nejia Gharbi.

Gharbi the first woman serving as both board chair and managing director in Tunisia and Arab countries added in an interview with TAP that STB's restructuring plan has increased deposits from 5,443 million dinars (MD) in 2016 to 8,260 MD at end 2020, up 52%.

That plan was launched in 2016 and closed in 2020.

The bank has achieved a growth rate in deposits estimated at 15% of the overall banking sector in 2020, 'therefore easily achieving its objectives expected in its budget activities,' added Gharbi.

Credits to customers have in turn seen a rise of 64% between 2016 and 2020, from 5,530 MD in 2016 to 9,096 MD in 2020.

Given the adequacy between the mobilisation of deposits and repayment of loans, the STB has managed to preserve its balances in terms of liquidity.

It has also allocated the reserves required by standards of the Central Bank of Tunisia (BCT) to guard against the risks of borrowing and other risks related to banking activities.

The official said the bank was a leader in the banking sector, especially in providing loans to businesses to cope with the COVID-19 pandemic.

These loans amount to nearly 563 MD, including 300 MD of management credits and the rest medium-term credits, according to the latest statistics (end of November 2020).

STB's net banking income stood at about 602 MD in 2019, knowing that the expected target is set at 554 MD in 2020.

The bank has also been able to cover half of the cumulative negative results estimated at 727 MD in 2015. They now stand at 350 MD.

The Board Chair of STB said the restructuring programme has allowed the bank to adopt modern policies especially in the areas of wages and procurement.

The bank has also reduced its classified debts from 30% in 2015 to 18% in 2019. In addition, it has recovered 178 MD since it began the recovery of debts, in accordance with Law No. 36 for the year 2018.

tap.info

banking

Banknotes and coins in circulation up by...
April 22, 2021
Foreign exchange reserves up by 18.8% in...
April 21, 2021
Tunisia: BH Bank achieves net profit of ...
April 20, 2021