ATB Posts Strong Second Quarter 2024 Results
The Arab Tunisian Bank (ATB) has reported impressive figures for the second quarter of 2024. The bank's net income has increased by 10.5% to 93,820 MTND. The interest margin has reached 51,114 MTND, a 36.0% year-over-year increase. Net commissions have decreased by 8.5% to 17,157 MTND, largely impacted by the free services imposed by the Central Bank of Tunisia (BCT) and for a one-year period. The revenue from the commercial and investment portfolio has reached 25,549 MTND.
First Half of 2024: A Positive Trend
Over the first six months of the year, the bank's net banking income (PNB) has risen to 184,478 MTND, a 10.2% improvement compared to June 2023. The interest margin has been the main driver of the bank's revenue growth (105,704 MTND), while net commissions (33,956 MTND) and portfolio revenue (44,818 MTND) have declined.
Deposit and Credit Trends
Compared to December 2023, deposits have decreased by 81,814 MTND to 6,267 MTND. However, sight and savings deposits have increased, reaching 2,080 and 1,705 MTND, respectively, as of June 2024. On the credit side, a slight increase in net loan outstandings has been observed, totaling 5,371 MTND.
A Deliberate Choice to Focus on Profitable Assets
In our opinion, the bank has made a deliberate choice to rationalize its activity and focus on profitable assets. Some depositors are demanding high interest rates, which could harm the bank's profitability in a high-risk context. The result is clear: with fewer deposits and stable credits, the bank has managed to improve its PNB.
Operating Expenses and Outlook
The bank's operating expenses have increased by 3.9% to 116,875 MTND, a logical percentage given the global inflation rate. Investors are now waiting for the semi-annual accounts to get a clear idea of the cost of risk for the year. The management, which has just been confirmed, will have the challenging task of convincing stakeholders of the bank's good trajectory for 2024. So far, the stock's return is 18.89%, significantly better than the Tunindex. There is confidence in the recovery, pending confirmation.