Tunisian Solidarity Bank (BTS) Achieves Remarkable Performance in 2023

The Tunisian Solidarity Bank (BTS), a small public-participation credit institution, has demonstrated impressive performance, concluding the year with a net banking product (PNB) of 67,401 MTND, a 12.1% increase from the previous year.

Investment and Interest Margin

The bank primarily allocates its resources to investments, relying on the interest margin to generate revenue. This strategy has yielded 55,716 MTND in 2023, accounting for 82.7% of the PNB, the highest rate in the sector. Net commissions are also relatively low compared to the industry, at 8,617 MTND. While this may not be a negative aspect, it highlights the bank's distinct philosophy.

Portfolio Investment Revenue

One of the year's novelties was the historic peak in portfolio investment revenue, reaching 3,068 MTND. This has enabled the bank to improve its revenue and reflects the ongoing efforts.

Assets and Risk Management

The bank's assets are sound, with a risk cost of 2,105 MTND, up from 1,577 MTND in 2022. The main expense in the bank's charge structure is personnel costs, which amount to 31,963 MTND. The bank's operating result has progressed by 16.7% to 18,372 MTND, while the net result has increased by 8.0% to 9,837 MTND.

Major Changes and Developments

The 2023 exercise has seen significant changes for BTS, including the conversion of all regional cells into 28 bank branches. This has contributed to improved activity, with deposit accounts increasing from 6,792 to 19,752. The number of savings accounts has almost doubled, reaching 1,554. The bank has also expanded its network of ATMs to 28, all certified by VISA. As a result, the number of cards issued has risen to 12,228, with 9,236 issued in 2023. The number of withdrawal operations has reached 100,440, totaling 16,236 MTND.

Credit and Financing Programs

The revision of credit ceilings granted by BTS in 2022 has enabled the bank to increase its credit outstanding to 1,503,524 MTND by the end of 2023. Other programs, such as budget lines for community enterprises or the Program for Support to Vocational Training and Professional Integration, could contribute to the growth of financing activities. The bank operates with special resources (FOSDAP, FONAPRA, FNE), but the restructuring will allow it to constitute a deposit reserve and innovate in its offers to an established customer base.

Conclusion

Given its performance, BTS deserves to be endowed with more resources, as it has demonstrated its ability to generate returns on investment.