BTK Announces 2023 Results, Confirming a Sustainable Return to Profitability

The BTK has announced its 2023 results, which confirm a sustainable return to profitability. The net result stands at 8,048 Mtnd, up from 7,619 Mtnd in 2022.

Record-Breaking Performance

The bank achieved a record-breaking PNB of 189,078 Mtnd, a 25.1% increase year-over-year. Its interest margin stood at 48,967 Mtnd, a 20.2% improvement compared to 2022. Net commissions also saw a 16.1% increase to 29,469 Mtnd. Revenues from securities and investment portfolios totaled 13,967 Mtnd.

Risk Management and Operational Efficiency

While the bank's risk cost tripled to 18,560 Mtnd, its doubtful claims decreased from 534,600 Mtnd in 2020 to 334,000 Mtnd by the end of 2023. This reduction led to a notable improvement in the CDL rate, which stood at 19.3% in 2023, down from 34% in December 2020.

Operating expenses decreased by 16.8% to 37,081 Mtnd, allowing the bank to balance its operating result, which stood at 8,866 Mtnd, a 10.8% annual increase. As of the end of 2023, the BTK's operating coefficient stood at 71%, down from 84% in 2022, 102% in 2021, and 117% in 2020. This continued decline confirms the bank's improved profitability following its activity resumption and cost control, despite being in an investment phase.

Deposit and Loan Growth

Deposits from customers totaled 1,295,205 Mtnd, a 5.7% increase compared to 2022. Customer loans stood at 1,279,235 Mtnd, a 6.6% increase. Compared to sector figures, the bank's growth potential is evident.

Capital Increase Still Pending

The bank's capital increase remains pending. This can only be achieved if the BTK successfully recapitalizes and closes this dossier, which has become a saga. The bank still reports a carried-over result of -181,837 Mtnd, a major handicap for an institution seeking to grow.

Regulatory Compliance

The bank's situation could be interpreted as a situation of difficulty under Article 110 of the Banking Law, requiring treatment by the resolution commission in accordance with Article 111 of the same law. The Central Bank addressed a letter to the BTK on September 1, 2023, reminding it of the need to consolidate its equity and highlighting the necessity of complying with prudent regulatory requirements.

The Board of Directors met on September 12, 2023, to examine the letter and convened an Extraordinary General Meeting (EGM) for October 16, 2023, to vote on a capital increase of 100 Mtnd. However, the project was not retained. Shareholders holding 40% of the capital (Tunisian State and Kuwait Investment Authority) opposed the decision, citing the need for further study.

Liquidity and Credit Ratios

As of the end of 2023, the bank's liquidity ratio (LCR) stood at 182%, while the credit-to-deposit ratio (LTD) stood at 109.41%, down from 112.75% the previous year.

The BTK awaits the final outcome of its social control dossier, which it has been subject to since 2018-2020. A preliminary notification was addressed to the bank on December 10, 2021, regarding a 3,003 Mtnd adjustment. A provision of 0,800 Mtnd was constituted.