BH Leasing, a leading leasing company in Tunisia, has reported a significant increase in its net profit for the first half of 2026. The company's net profit reached 1.142 million dinars (MDT), up 61.8% from 0.706 MDT in the same period last year. This growth was driven by a 22.76% increase in leasing revenue, which rose to 10.190 MDT from 8.300 MDT in H1 2025.
Despite the impressive profit growth, BH Leasing's financial performance is not without challenges. The company's provisioning expenses increased substantially, with net provisions for doubtful debts rising to 2.672 MDT, up 83.1% from 1.459 MDT in H1 2025. This represents a significant increase in the cost of risk, which could potentially impact the company's future profitability.
Another area of concern is BH Leasing's cash flow generation. The company's operating cash flow deteriorated to -11.6 MDT, compared to -6.45 MDT in H1 2025. While financing activities provided a positive cash inflow of 11.9 MDT, the overall cash position remains a concern. The company's reliance on bank financing also increased, with borrowings and related debts rising to 266.4 MDT, up 13.8% from the previous year.
BH Leasing's asset quality also remains a challenge, with non-performing assets accounting for 12.55% of total assets, slightly down from 12.77% in June 2025. However, the company's coverage of non-performing assets improved to 55.29%. The company's management will need to closely monitor these indicators to ensure the sustainability of its growth momentum.
The company's growth in leasing revenue is a positive sign, but it will be crucial to maintain a balance between growth and risk management. BH Leasing's management will need to focus on improving its cash flow generation and reducing its reliance on bank financing to ensure the long-term sustainability of its business model.
In conclusion, BH Leasing's H1 2026 performance was marked by a significant increase in net profit, driven by growth in leasing revenue. However, the company's provisioning expenses, cash flow generation, and reliance on bank financing remain areas of concern. The company's management will need to navigate these challenges to ensure the sustainability of its growth momentum.
Looking ahead, BH Leasing's performance will depend on its ability to manage its risk profile, improve its cash flow generation, and maintain a stable funding profile. The company's key priorities will be to monitor its provisioning expenses, improve its asset quality, and reduce its reliance on bank financing.
Key points
- BH Leasing's net profit increased 61.8% to 1.142 MDT in H1 2026.
- The company's provisioning expenses rose 83.1% to 2.672 MDT in H1 2026.
- BH Leasing's operating cash flow deteriorated to -11.6 MDT in H1 2026.
