BH Bank’s Interim Financials: Solid Foundation Amidst Structural Challenges

BH Bank’s interim financial statements, as of June 30, 2026, highlight a robust financial institution navigating significant structural challenges. With total assets exceeding 15,361 MTND, the bank maintains a leading position in the sector. Its net loan portfolio stands at approximately 10,350 MTND, while customer deposits amount to 10,209 MTND.

Operational Performance and Risk Costs

Operationally, the bank reported a Net Interest Income (NII) of 345.657 MTND, a slight increase from the restated figure of 343.304 MTND recorded in the same period last year. However, this operational performance is significantly compressed by high risk costs, particularly within a tight economic context.

Provisions for impairment and the result of value adjustments on on-balance sheet and off-balance sheet assets and liabilities totaled 146.698 MTND. This figure underscores the ongoing pressure on asset quality and the necessity to strengthen risk coverage.

Notably, uncertainties related to two major engagements with concerning financial situations—amounting to 105 MTND and 72 MTND respectively—prompted the bank to establish an additional provision of 50 MTND.

Net Profit Impact

Consequently, due to this rigorous provisioning policy and high funding costs weighing on the Net Interest Margin, the net profit stood at 15.225 MTND, down from 54.385 MTND as of June 30, 2025. After accounting for the net-of-tax impact of accounting changes (10.185 MTND), the adjusted profit was reduced to 5.040 MTND.

ESG Strategy and Environmental Initiatives

In terms of Environmental, Social, and Governance (ESG) policy, BH Bank is progressively strengthening its approach to these critical issues. Key initiatives include:

• Carbon Footprint Monitoring: The bank has implemented a periodic carbon balance calculation tool to measure and track greenhouse gas emissions.
• Eco-Responsible Projects: Concrete environmental criteria are integrated through the development of eco-friendly projects, including:
  • Installation of photovoltaic panels at select sites.
  • Rainwater harvesting systems.
  • Thermal insulation of rooftops.
• Environmental and Social Risk Management: The bank has deployed a dedicated system to manage environmental and social risks, ensuring rigorous identification and validation of risks associated with financed projects in line with its environmental and social policy.

Market Outlook

On the stock market, BH Bank’s shares have delivered an excellent performance, rising by more than 48% since the beginning of the year. There are no concerns regarding the quality of the bank’s prudential ratios.

From a profitability perspective, a partial recovery is possible in the second half of the year, particularly following the significant provisioning efforts made during the first six months.