Islamic Banks in Tunisia: 2024 Market Performance
In 2024, Islamic banks operating in Tunisia continued to make progress in the market. Their market share in credits increased by 0.8 percentage points to reach 8.2%, while their share in total assets and deposits slightly increased to 7.1% and 8.2%, respectively.
Key Performance Indicators
- Their operating portfolio reached 9,766 million Tunisian dinars (TND), up 14.6% compared to 2023.
- Credits remain dominated by Murabaha operations (65.1%) and Ijara operations (16.1%).
- Other notable items include 146 TND of claims related to customer accounts and 698 TND of investment and participation securities.
- However, non-performing and rescheduled claims increased significantly, reaching 1,011 TND (+361.6%).
Resources and Funding
- Islamic banks recorded a 13% increase in resources, reaching 9,507 TND, with 99% coming from deposits.
- The deposit structure remains stable: 45.4% for savings accounts, 34.2% for current accounts, and 20.4% for participatory deposits.
Credit Risk and Provisioning
- The credit risk has worsened, with classified claims increasing by 30.8% to reach 754 TND, representing 6.7% of total commitments compared to 5.8% in 2023.
- The provisioning rate has slightly decreased to 37.5%.
Profitability and Efficiency
- Profitability was mixed, with net banking income (NBI) increasing by 12%, driven by the profit margin, which accounts for over 70% of NBI.
- Operating expenses increased by 11.2%, resulting in a slightly improved operating coefficient of 53.4%.
- However, net income decreased by 10.6% to 125 TND, and return on assets (ROA) and return on equity (ROE) indicators experienced a slight deterioration, standing at 1.1% and 11.2%, respectively.
Solvency and Outlook
- Solvency ratios remain satisfactory, providing the three Islamic banks with comfortable margins to continue developing their activities.
