Bank of Tunisia and Emirates Posts Q1 2025 Results
The Bank of Tunisia and Emirates has closed its first quarter 2025 with a net banking income (NBI) of TND 16,591 million, up 6.0% year-over-year. The interest margin of the credit institution stood at TND 4,995 million, compared to TND 5,270 million over the same period in 2024. This decline is explained by the increase in resource costs, particularly with the growth of savings deposits (+10.2% year-over-year to TND 197,740 million) and term deposits (+27.9% to TND 654,418 million).
Net commission income has decreased by 3.5% to TND 5,819 million, a consistent trend with the capping of basic banking service fees last year. This was offset by revenue from the commercial and investment portfolio, which soared by 46.2% to TND 5,188 million. The bank's portfolio has gained 37.0% over the year, totaling TND 273,642 million as of the end of March 2025.
The Bank of Tunisia and Emirates' operating expenses have risen by 19.0% to TND 12,551 million. Commercial activity is marked by a buildup of deposits, and the bank holds TND 1,191,125 million in deposits, with a net credit balance of TND 1,056,335 million. There has been a significant increase in short-term corporate loans, up 32.4% (TND 73,919 million) and medium- and long-term loans, up 25.6% (TND 44,608 million). Leasing financing has also benefited from this positive trend, posting a growth of TND 16,471 million, representing a 34.1% year-over-year increase.
The bank's main challenge remains achieving profitability. In 2024, it managed to reduce its losses, but it still needs to reduce its cost of risk. As of December 31, 2024, classified assets stood at TND 272,163 million, a high amount compared to the size of the financial institution's portfolio.
