BH Bank Records a Profit of 54,385 MTND in the First Half of 2025
The BH Bank has reported a profit of 54,385 MTND for the first half of 2025, down from 77,591 MTND at the end of June 2024. This decline reflects two opposing dynamics.
Contraction of Net Banking Income
The first dynamic concerns a contraction of the net banking income, which decreased from 362,670 MTND in the first half of 2024 to 343,304 MTND a year later. Interest and similar income declined to 500,186 MTND, while interest and similar charges increased to 372,494 MTND. The decline in interest rates, combined with the impact of the downward revision of fixed rates applied to long-term loans, had a negative effect on the bank's revenue. Additionally, the total volume of gross financing granted decreased, standing at 12,093,112 MTND.
Impact of Legislative Changes
The BH Bank is known for its strong involvement in the housing credit segment, which is directly affected by the provisions of Article 412 ter of Law No. 41-2024 of August 2, 2024. The outstanding amount of these loans stands at 1,317 MTND as of June 30, 2025. The estimated reduction in contractual interest, taking into account the entire repayment period of the loans concerned by the law, would be 165 MTND over the period 2025-2046. The actual impact of the interest reduction was 7,900 MTND over the first six months of 2025. Furthermore, requests conforming to this legislation, received between the date of its promulgation and December 31, 2024, gave rise to an estimated provision of 1,400 MTND, accounted for in the financial statements. We welcome the bank's transparency on this important aspect, closely observed by the market.
High Cost of Resources
At the same time, the cost of resources remains high. Remunerated deposits reached 5,610,977 MTND at the end of June 2025, compared to 5,115,403 MTND a year earlier. While this evolution helps to stabilize the bank's resources, it also leads to an increase in interest charges, exerting pressure on the net margin.
Increase in Operating Expenses and Risk Costs
The second dynamic is related to the continuous increase in operating expenses and risk costs. The latter increased by 12.0%, reaching 111,207 MTND, partly due to the constitution of an additional provision of 40 MTND on a risky file. Personnel expenses increased by 2.4% to 97,843 MTND, while general operating expenses grew by 4.8% to 40,907 MTND.
Operating Result (EBIT)
Thus, the operating result (EBIT) stood at 89,530 MTND.
Conclusion
We estimate that the BH Bank's results reflect the pressures currently facing the banking sector. The increase in counterparty risks in the Tunisian economy, as well as significant exposure to the effects of recent changes to the Commercial Code, are major factors to monitor. Nevertheless, the institution remains profitable and maintains a solid foundation.
