banking

Listed banks to see net banking income rise 6.3 billion dinars (broker)

October 27, 2022

TAP) - The 12 listed banks will see their net banking income (NBI) increase by at least 12.7% to 6.3 billion dinars in the 2022 financial year, from 5.5 billion dinars in 2021, reads a survey on the banking sector conducted by stock market broker, Tunisie Valeurs.

Since the onset of the year, the sector has achieved a flawless stock market performance favored by the good earnings growth recorded in 2021, the generous distribution of dividends and the expectations of a rate hike beneficial for the NBI, said the same source.

The upturn posted from the start of the year 2022 has helped the sector to recover all the ground lost on the stock market since the outbreak of the COVID-19 health crisis in Tunisia on March 2, 2020 (+17, 5% for the banking index since March 2, 2020), the survey underlines.

Credit activity showed a substantial resistance in the first half of 2022, cumulating an increase in the volume of the sector's commitments by 3.5% to 79.9 billion dinars.

'Despite the unmotivating business climate, we believe that the sector's production should continue to be sustained between now and the end of the year,' said Tunisie Valeurs, forecasting growth in outstanding loans from the listed banking sector by 8.8% to 84 billion dinars during 2022.

The banking sector, which counts 29 institutions including 12 listed banks, differs by «its atomicity», unlike neighbouring and westernised markets, concentrated around a few large financial institutions.

They are public banks, universal private banks, non-resident banks and investment banks...

However, for Tunisie Valeurs, a better concentration of the banking market would, at this moment, be much more desirable for the stability of the financial system.

With a market capitalization of 10.3 billion dinars, the banking sector is the leading force in the equity market and its pacemaker, representing 41.5% of the total capitalization. It still remains an essential barometer of the stock market investment, the same source recalls.

Since the Revolution, the sector has shown a great resilience amid the austere regulatory framework, the survey highlights, adding that it has proven efficiency despite the gruesome economic situation and the poor business climate due the COVID-19 pandemic.

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