a jump of more than 90%

The board of Union Internationale de Banques (UIB) met under the chairmanship of Kamel Néji to review and approve the interim financial statements as of 30 June 2022, presented by the Managing Director, Raoul Labbe de la Genardiere.

In an economic environment still recovering from Covid-19 and destabilized by the fallout from the war in Ukraine, UIB was able to maintain a healthy and profitable growth trajectory and demonstrate resilience in its financial and commercial performance during the first six months. 2022. Its net banking income stood at 235 million dinars, an increase of 7.2% compared to the end of June 2021. The bank’s good financial performance is also driven upwards by the good control of operating expenses (-9.2%) – with positive jaws effect – as well as the moderate increase in risk costs, which remain particularly low. The latter even fell by 30.8% compared to the same period last year. This testifies to the good quality of UIB’s portfolio, which is reflected in a rate for non-performing loans of 8.3% and a coverage ratio for non-performing loans with provisions of 72.5%. In two and a half years, UIB actually spent 130 million dinars of provisions, including an amount of 54.4 million dinars in a preventive manner.

UIB continues to improve its performance while strengthening its human capital, modernizing its IT infrastructure and bringing useful and responsible innovation to the service of its stakeholders. Thus, the gross operating profit increased by +30.2% and reached 118.8 million dinars during the first half of 2022. Its operating profit of 104.6 million dinars increased by 47.8% compared to the same period in 2021, and the net profit was 67 .2 million dinars. 35 million dinars a year earlier, a jump of 91.5%.

Commenting on these results, Raoul Labbe de la Genardière, Director General of the UIB, said: “This semester once again illustrates the solidity of UIB’s fundamentals around a diversified business, a robust operational and IT infrastructure, and employee engagement and expertise. By building on its strengths, UIB will continue to use its growth drivers to accelerate its development and renew customers’ confidence in financing the economy”.

Kamel Néji, chairman of UIB’s board, emphasized for his part: “In these times of increasing concerns and upheavals in global balance sheets, UIB’s financial performance – realized with an ROE of 17.6% – is something that pleases shareholders. Especially since the maintenance of this positive trend is the most likely scenario in the second half of 2022”. However, he claims that “this projection should certainly not hide the many challenges linked – in particular – to a high-risk environment visible almost everywhere in the world, with the key to a slowdown in economic growth. The business climate is rightly considered unexciting, and many restrictions continue to limit activity. The situation of households, for its part, risks becoming complicated under the impact of interest rate increases and the highest inflation in a very long time. As for the state, it must deal with the deterioration of public accounts and the difficulties in mobilizing resources to implement an ambitious policy of adaptation to change. And these trends – which affect both households, companies and the state – can cause risks for the banks”. However, he affirms without presumptuousness that “UIB is today well prepared for the side effects associated with the current crisis. In support of the results of the stress tests carried out, which highlight the soundness of UIB’s fundamental principles. At the same time, the interest rate increase will have favorable effects on banks’ income and their net interest margins.However, this increase in interest rates is not without risk and its beneficial effects may be limited on the one hand by the increase in the risk burden and refinancing costs and on the other hand by a less dynamic credit maintained in a deteriorating economic context.”

Kamel Néji, chairman of UIB’s board, thinks so “In this economic and geopolitical context, which seems to persist, UIB is relentlessly called upon to continuously upgrade its structures and processes and carry out a balancing act in its risk management policy. As it has a duty to protect its customers and develop healthy, balanced and forward-looking relations with them. It is our responsibility to maintain all our ambitions and fully embrace our mission to return to a more stable, productive, healthy, efficient and attractive economy”. He concluded that “the challenges , we have to meet, we will only meet them through the effort and ambition to further stimulate the attractiveness of our bank as well as through the seriousness of our team. Who should we give the means to sharpen their skills and ensure a better life for them”

According to the press release

Leave a Comment