BH Bank, a Tunisian bank listed on the Bourse de Tunis, has reported a significant decline in its net profit for the first half of 2026. The bank's net profit fell to 15.2 million dinars, a 72% decrease from 54.4 million dinars in the same period last year. This decline is attributed to various factors, including a challenging operating environment and increased provisioning for bad debts.
The bank's financial statements, released on September 16, 2026, also revealed that the auditors have expressed concerns over the bank's information system, which has affected its control and financial reporting processes. The auditors noted that there were insufficient controls in place to ensure accurate allocation of products and fees to clients. Additionally, they highlighted the reclassification of 37 million dinars in expenses related to the T24 project, which is still being evaluated.
The auditors also identified several other issues, including unsubstantiated account balances, outstanding transactions that had not been cleared, and a lack of documentation for guarantees received from clients. These issues have raised concerns about the bank's financial performance and the quality of its assets. The bank's management has been urged to address these issues and implement corrective measures to improve its financial reporting and control processes.
Despite the challenges, BH Bank's net banking income increased to 345.7 million dinars in the first half of 2026, up from 343.3 million dinars in the same period last year. The bank's total banking income rose to 694.5 million dinars, driven by a 447.7 million dinar increase in interest and similar income, and a 157.6 million dinar increase in investment portfolio income.
However, the bank's provisioning expenses and write-downs on loans and off-balance-sheet items increased to 146.7 million dinars, up from 103.7 million dinars in the same period last year. This increase in provisioning expenses has put pressure on the bank's profitability, contributing to the decline in net profit.
The bank's total assets stood at 15.4 billion dinars as of June 30, 2026, up from 15 billion dinars a year earlier. Customer loans increased to 10.35 billion dinars, while customer deposits and accounts rose to 10.2 billion dinars. The bank's equity stood at 1.38 billion dinars.
The bank's management has taken steps to address the challenges it faces, including strengthening provisioning for doubtful loans and improving its risk management processes. However, the bank's financial performance remains under pressure, and it will need to continue to implement corrective measures to restore profitability and improve its financial position.
Key points
- BH Bank's net profit declined 72% to 15.2 million dinars in the first half of 2026.
- The bank's auditors have expressed concerns over the bank's information system and financial reporting processes.
- The bank's provisioning expenses increased significantly, contributing to the decline in net profit.
