The Tunisian banking sector suffered a decline in credit activity last year. However, banks have seen their outstanding loans slightly grow by 4.6% to TND77.1 billion, according to a recent analysis by Tunisie Valeurs.

The financial institution attributes this slowdown in the distribution of credit to the sluggishness of the business climate that has led to a decline in demand for credit. On the other hand, Tunisie Valeurs said that banks were more willing to collect deposits than to grant loans.

"All banks listed on the Tunis Stock Exchange have recorded relatively moderate increases in their outstanding loans, except BH Bank, whose volume of commitments has virtually stagnated at TND9.8 billion. Due to the difficult economic situation and the scarcity of good signatures, the Bank seems to preserve the quality of its portfolio," the institution said in its analysis.

Despite this slowdown in credit activity, all 12 listed banks posted positive changes in their net banking income. "The banks have achieved an increase of 10.4% to TND5.5 billion in their revenues,” said Tunisie Valeurs.

This analysis confirmed data provided last February 9 by the Tunis Stock Exchange, which reported an increase in revenues for the banks listed on the market.  The higher revenues were supported by an increase of 13.4% in commissions and a 25.5% growth in other revenues.

Chamberline Moko