Zitouna Bank Publishes 2024 Financial Statements
Zitouna Bank released its financial statements for the 2024 fiscal year last week. The credit institution recorded a net profit of 74,168 MTND, down from 81,085 MTND the previous year. However, if we exclude extraordinary items from 2023, the decline is only 1.8%.
For the first time in its history, the bank has surpassed the 400 MTND threshold in terms of Gross National Product (GNP), which has increased by 13.7% year-over-year. As an Islamic bank, Zitouna is not allowed to engage in asset management activities on the Tunisian market, as it does not offer Sharia-compliant investment opportunities. The gains from financial operations and securities portfolios did not exceed 23,483 MTND. On the other hand, the interest margin is significant, at 300,263 MTND. Commissions also reached 76,458 MTND, giving the bank a different PNB structure compared to the rest of the Tunisian banking sector, with the interest margin and net commissions representing 94.1% of PNB.
All of this improvement was absorbed by provisions for loan losses of 74,786 MTND. Additionally, personnel expenses increased by 8.9%, in line with the development of the bank's network. The Operating Result remained stable, at 98,629 MTND. Zitouna Bank has deposits of 6,320,671 MTND, compared to a loan portfolio of 5,784,067 MTND (net) and 6,071,941 MTND (gross). This places the bank among the most important financial institutions in the country.
The bank has all the means to continue its development. However, the regulatory framework could pose a risk to its profitability. According to the Auditors, the provisions of Article 412-III (new) of Law No. 41 of 2024 (which stipulates that banks must reduce fixed interest rates applied to loans with an initial repayment period of more than 7 years if the total value of contractual interest paid by the client over the three years preceding the request for reduction exceeds 8% of the remaining capital due) could have a significant impact on profitability in future exercises. Consequently, Zitouna Bank expects an impact on its future financial statements, without providing a quantified estimate of the impact.
