BIAT’s restructuring pays off
To June 2000, BIAT, Tunisian largest privately owned bank, posted total assets of TND two billion increasing by 28 percent and a net earnings rise of 22.5 percent at TND 13.129 million. The bank’s reshaping allowed services to improve, which in turn raised deposits by 23 percent against 15 percent a year earlier.
Subsequently, interests expenses have risen 16 percent at TND 25 million. It has committed itself to give an impetus to non-interest revenues of which net fees and commissions amounted higher to TND 11.9 million, up 25 percent.
Capital gains and dividends in market related activities jumped 56 percent at TND 13.3 million. Cost to income ratio has also declined to 59 percent from 62 percent at mid-99. This improvement helped the bank emphasize provisioning pattern in order to clean up its NPL portfolio and regain the international investors' interest.
Keeping apace the ongoing provisioning effort, BIAT's provisions charges should reach 1.3 percent in gross loans, which was the high ever level since 1993-94. — ( TUSTEX)
© 2000 Mena Report (www.menareport.com)