STB: A Strong and Resilient Public Bank
The Société Tunisienne de Banque (STB) is the public banking institution that has benefited the most from state support in terms of capital injections. Today, the bank is doing well, having wiped out its previous losses and posting profitable results. The most important aspect is the quality of its balance sheet, measured by the main prudential ratios.
Strong Solvency Ratios
The bank boasts solvency ratios that exceed regulatory thresholds, with comfortable excess capital. The global solvency ratio and Tier I ratio have improved by 15 and 170 basis points, respectively, compared to 2023, standing at 15.2% and 11.9% at the end of the 2024 exercise. The bank's risk exposure has decreased by 1,156 MTND during the 2024 exercise, standing at 10,093 MTND. This is mainly due to a decline in credit risks, which have fallen by 11.0% year-on-year (1,050 MTND) to 8,526 MTND. Net own funds amount to 1,531 MTND, comprising 1,203 MTND of basic net own funds and 328 MTND of complementary funds.
Comfortable Capital Buffer
The surplus of net basic own funds (Tier-1) has been established at 497 MTND. The surplus recorded at the level of total net own funds has been established at 522 MTND, which is likely to confer on the bank a significant capacity for future business development.
Liquidity and Loan-to-Deposit Ratios
Furthermore, the STB has posted Liquidity Coverage Ratio (LCR) levels that exceed the required standard throughout the year. The LCR has increased by 253.1% to stand at 469.8%. The Loan-to-Deposit Ratio (LTD) has ended the year at 96.9%, an improvement of 13% compared to the previous year (maximum regulatory limit of 120%).
Room for Improvement
However, the level of classified claims has been established at 23.3% at the end of 2024, compared to 18.1% in 2023. Non-performing claims have risen to 3,159 MTND. The structure of non-performing claims by sector of activity reveals a concentration in industry (40.7%), services (16.2%), tourism (15.1%), and real estate promotion (11.9%). There is therefore an effort to be made at this level, and this should constitute a priority for the bank.
Overall Resilience
Overall, the STB demonstrates good resilience in the face of major risks and improved financial solidity.
