Tunisian Saudi Bank (TSB) Releases 2024 Financial Statements with Significant Delays
The Tunisian Saudi Bank (TSB) has published its 2024 financial statements, albeit with a few months' delay. The credit institution reported a substantial loss of 81,102 MTND, bringing its equity to -126,516 MTND.
Key Financial Highlights
- Net banking income stood at 11,307 MTND as of 2024, representing a 13.9% year-over-year decline.
- The bank posted a negative interest margin of -27,009 MTND, partially offset by net commissions of 13,918 MTND and portfolio income of 24,399 MTND.
- Net credit outstandings reached 497,627 MTND (572,609 MTND in 2023), while gross outstandings remained relatively stable at 1,046,926 MTND.
Credit Quality and Provisions
- The bank's classified claims totaled 697,966 MTND, an excessive level compared to the bank's asset size.
- The cost of risk was 44,801 MTND, significantly impacting the bank's accounts.
Customer Deposits and Funding
- Customer deposits increased to 878,513 MTND (788,876 MTND as of 2023), including 168,509 MTND in savings products and 350,253 MTND in time deposits.
- These deposits generate revenue for customers, while the bank lacks sufficient interest-earning loans.
Regulatory Compliance and Recapitalization
- TSB does not meet prudential ratios, justifying the announced recapitalization of 100 MTND, which is still pending.
- We believe this amount is insufficient and should be at least doubled.
- From a commercial perspective, the bank will struggle to quickly reverse the trend, and declining interest rates will affect its asset management revenue.
- The ongoing in-depth audit results will be crucial, as there is a need for a complete overhaul of the credit institution's economic model.
