ATB's Second Quarter 2025 Figures Reflect Interest Rate Decline
The second quarter 2025 figures from ATB bear the mark of declining interest rates. The net interest margin stood at 35,690 MTND, a 16.2% year-over-year decline. Since the beginning of the year, it has totaled 88,413 MTND, also a 9.0% decrease compared to the first six months of the previous year. This trend is not only explained by a price effect but also a volume effect. ATB's net loan portfolio amounts to 39,885 MTND, a decrease of 39,885 MTND over the past year. The current level of risks spreading through the economy favors reinforced prudence in loan granting policy. It is better to have reduced activity than financing that turns into provisions after a few months. In parallel, deposits have strongly increased, by 505,527 MTND compared to June 2024. As a significant part of these resources is remunerated, this increases the interest expense and puts pressure on the interest margin.
Net commission income from products increased by 3.8% to 17,814 MTND in the second quarter but decreased by 1.6% to 33,417 MTND over the entire first half. As for portfolio investment and securities revenue, it ended the semester with a 3.2% increase to 52,833 MTND. This resulted in a quarterly net banking income of 82,886 MTND in the second quarter, a 9.5% decline. Since the beginning of the year, the decline amounts to 4.2% (174,663 MTND).
ATB's operating expenses evolved by 9.0% to 127,448 MTND. The trend is observed across the entire sector: an inflexible cost structure while revenues begin to normalize after two exceptional years. The bank should focus on profitability and asset quality first and foremost. This is the most important thing in the current context.
