Arab Tunisian Bank (ATB) Convenes Ordinary General Assembly on April 28, 2025
The Board of Directors of Arab Tunisian Bank (ATB) has convened an Ordinary General Assembly on April 28, 2025. The bank concluded the 2024 financial year with a net profit of 10,218 MTND. To recall, the 2023 financial year recorded a loss of 9,406 MTND, largely due to a risk cost of 132,285 MTND. The first half of 2024 showed signs of improvement, with provisions on claims decreasing to 34,826 MTND by the end of June 2024.
Although the bank reported a profit of 12,409 MTND for the first half of 2024, concerns remained that the rate of classified claims could still rise. The operational context of the sector remains highly complex. Nevertheless, we believe that the main achievement of the 2024 results is the complete restoration of investor confidence in the bank's ability to progress with asset quality in line with its peers.
The Board of Directors' decision not to distribute dividends is fully justified by the absorption of previous years' losses, amounting to 65,645 MTND. We believe that the bank needs at least two years to erase these losses and should continue to focus on improving its profitability in the face of a tightening regulatory framework. We must observe the impact of the application of Article 412 ter of Law No. 2024-41, the rate of requests for interest rate reductions on PNB, as well as the trajectory of compromised claims. The stock remains on a yield of 8.57% since the beginning of the year, and the announced results should consolidate this positive trend.
