Banking Sector Remains Top Dividend Payer in Tunisia
The banking sector remains the primary payer of dividends in Tunisia, a trend observed in many countries worldwide. To date, 19 resident banks have published their financial statements and held their ordinary general meetings to approve the results of the 2024 fiscal year.
The figures reveal that a total of 822,500 MTND has been distributed in dividends, up from 785,052 MTND in the previous year. This increase reflects an improvement in net results, which rose from 1,549,659 MTND in 2023 to 1,681,798 MTND in 2024.
At first glance, the distribution rate stands at 48.9%, but it is essential to note that only 10 out of the 19 banks have actually paid dividends. Taking this factor into account, the real payout ratio reaches 53.9%, demonstrating a certain generosity towards shareholders.
This dividend distribution policy explains the persistent attractiveness of the market for banking stocks, despite an increasingly constraining regulatory environment and growing pressure on margins. Interest rates have declined, but banking stock prices continue to rise. The banking sector index has thus recorded a 15.92% increase since the beginning of the year, despite a near-unanimous consensus on an expected decline in sector profitability in 2025. In fact, two listed banks have already announced a decline in their gross operating income for the first six months of the year.
As long as there is certainty that credit institutions will maintain their dividend distribution policy, the banking sector will continue to benefit from investor support. To maintain this positive market dynamic, banks could consider rewarding their shareholders with free shares, which would constitute an interesting lever to compensate for a potential decline in cash dividends.
