UIB Reports Strong Q3 2024 Results
Net Banking Income Reaches 133,853 MTND, Up 2.9% YoY
The Union Internationale de Banques (UIB) has announced its financial results for the third quarter of 2024, with a net banking income (PNB) of 133,853 MTND, representing a 2.9% increase compared to the same period in 2023.
Interest Margin and Commissions Show Improvement
The bank's interest margin evolved by 4.2%, reaching 80,165 MTND, while commissions on products improved by 1.1%, totaling 37,019 MTND. Revenues from the commercial and investment portfolio stood at 16,669 MTND, up 0.9%.
Nine-Month Results: PNB Up 3.8% YoY
Over the first nine months of the year, the PNB totaled 400,853 MTND, marking a 3.8% increase year-over-year. Operating expenses remained under control, rising by 5.1% to 200,690 MTND, with an operating coefficient of 50.1%, compared to 49.5% the previous year.
Risk Management and Deposit Growth
The UIB is among the banks seeking to rationalize their risk-taking. While net credit outstandings decreased by 244,116 MTND since the beginning of the year, deposits surged by 350,019 MTND over the same period. In the absence of profitable projects, the bank can benefit from interest rates. The bank's gross operating income rose to 200,8 MTND, up 62.8% year-over-year.
Profitability and Outlook
While the bank's profitability is not in danger, it will, like the entire sector, be affected by the consequences of the 2025 finance bill, which stipulates a 40% tax rate instead of 35%.
Strategic Reflection on Société Générale's Stake
The market is still awaiting the outcome of the strategic reflection on the fate of Société Générale's stake in the bank's capital. This is the key information that investors are eagerly awaiting.
