UIB Reports Strong Second Quarter 2024 Results
The second quarter of 2024 was very good for UIB. The bank's net banking income (PNB) reached 134,496 MTND, a 3.0% year-over-year increase. The bank's interest margin reached 77,136 MTND, a 2.3% improvement compared to the same period in 2023. Net commissions on products slightly decreased by 1.0% to 37,634 MTND, due to an increase in commission expenses. However, this was more than offset by a strong performance in commercial and investment securities portfolios, which reached 19,717 MTND compared to 17,130 MTND in the April-June 2023 period.
Since the beginning of the year, UIB has reported a PNB of 267,001 MTND, a 4.3% increase compared to June 2023. The bank has earned interest income of 335,096 MTND, a 7.8% year-over-year increase. As a result, the bank has reported a 5.2% improvement in its interest margin to 154,908 MTND. Net commissions remained stable at 75,657 MTND. The share of revenue from commercial and investment securities portfolios accounts for only 13.6% of the PNB generated by UIB, totaling 36,427 MTND in the first half of the year, significantly lower than the sector average.
Operating expenses increased by 6.2% over the entire first half to 135,545 MTND. The operating expense ratio stands at 50.8% compared to 49.9% last year.
In terms of commercial activity, UIB's deposits reached 6,576 MTND (290,360 MTND more than in December 2023) compared to a net loan portfolio of 6,509 MTND (22,058 MTND less than in December 2023).
UIB is the only bank that publishes its Gross Operating Income on a quarterly basis. As of June 2024, it has increased by 2.9% to 132,100 MTND.
All these elements indicate an improvement in net profit for the first half of 2024. On the stock market, the evolution of the share price is more influenced by the news of Société Générale's exit from the capital rather than the bank's intrinsic performance. This is, once again, the story to follow this year in the banking sector.