UIB's Third Quarter 2025 Results: A Challenging Period
The third quarter of 2025 saw a decline in UIB's Net Banking Product (PNB) of 2.6%, reaching 130,030 MTND. This decrease can be attributed to the 50 basis point drop in the key interest rate between the two periods. The impact is evident in the interest income for the period, which decreased by 3.5% to 168,654 MTND. Meanwhile, resources remain expensive, explaining the 10.0% decline in interest margin to 72,105 MTND.
Partial Compensation through Commissions and Portfolio Revenues
The bank was able to partially offset this decline with a 3.1% increase in net commissions (37,790 MTND) and a 20.8% rise in portfolio revenues (20,135 MTND).
Year-to-Date Performance
Since the beginning of the year, the financial institution has maintained a PNB of 388,445 MTND. According to our estimates, the bank is expected to end the year with a PNB of around 520 MTND.
Operating Expenses and Efficiency Ratio
Operating expenses increased by 7.7% as of September 2025, reaching 215,023 MTND. The operating efficiency ratio stands at 55.4%, compared to 49.9% the previous year. Excluding the impact of Law 2024-41, which amended the Commerce Code, the operating efficiency ratio would be 52.7%.
Commercial Performance
UIB's deposits reached 7,133,111 MTND, an increase of 273,144 MTND compared to December 2024. The bank's net loan portfolio stood at 6,283,771 MTND, up 71,194 MTND from December 2024. As most of the additional deposits are remunerated, this will further erode the interest margin in the coming months. With rising risks in the economy, risk selection has become more stringent.
Gross Operating Result
As of September 2025, the gross operating result stood at 173.7 MTND, a 13.5% decline from the previous year. Taking into account the effects of the amendments to the Commerce Code, the decline would be only 4%.
Net Profit and Outlook
With a net profit of 49,048 MTND recorded in the first half of the year, investors can be reassured about the bank's profitability. Like the rest of the sector, UIB is navigating a transitional period, marked by a decline in interest rates and rising risks. The Société Générale subsidiary has managed to preserve the quality of its assets while remaining competitive from a commercial standpoint. This, in itself, is a success.
