Tunisia's Leasing Sector Maintains Positive Momentum in 2024
The leasing sector in Tunisia maintained a positive dynamic in 2024, recording a 10.4% increase in new contracts (contracts that have entered into force), reaching 2,387 million dinars (MD), according to the annual financial supervision report published on Saturday by the Central Bank of Tunisia (BCT).
Key Highlights
- This growth, although sustained, was less vigorous than that of the previous two years (13.8% in 2023 and 17% in 2022).
- The leasing portfolio continued to rise, increasing by 9.3% to 4,447 MD at the end of the year.
- Leasing activity was financed by 74% through borrowing resources, dominated by bank loans, which accounted for 58.5% of these resources, compared to 53.6% in 2023.
- Bond borrowing slightly increased to 28%, while external resources continued to decline, accounting for only 11% (compared to 16.4% in 2023 and 20.4% in 2022).
Risk Profile and Funding
- Bank resources cover 43% of leasing companies' loans, exposing them to refinancing and maturity transformation risks, as well as a notable interest rate risk: more than half (54%) of their resources are at variable rates, while their investments are mostly at fixed rates.
- In 2024, the credit risk profile of the sector slightly deteriorated, with a 5.7% increase in classified claims, reaching 418 MD. This evolution includes write-offs of claims for an amount of 25 MD.
Financial Performance
- The share of classified claims slightly improved, falling from 9.1% in 2023 to 8.9% in 2024, thanks to the increase in total commitments (+7.6%).
- The coverage rate by provisions stood at 66.9%, a level considered satisfactory. Leasing companies have guarantees on the financed assets, mainly rolling stock, limiting losses in case of default.
- The year 2024 recorded a 4.1% increase in the interest margin (+11 MD), a more modest progression than in 2023 (+6.1%) and 2022 (+14.7%). This evolution reflects both a slight increase in the cost of resources (+0.1 point) and an improvement in the yield on loans (+0.2 point), reaching 13.3%.
Net Result and Profitability
- The net leasing product increased by 5.7% (+16 MD), reaching 311 MD, thanks in particular to the increase in portfolio income (+22.4%). Of this total, 39.5% was allocated to operating expenses and 6.3% to credit risk coverage, compared to 38.6% and 7.4% in 2023, respectively.
- As a result, the sector's global net result progressed by 3%, reaching 106.2 MD, despite the increase in the exploitation coefficient and a 29% increase in corporate tax.
- The sector's profitability slightly declined: the return on equity (ROE) stood at 13% compared to 13.6% in 2023, and the return on assets (ROA) at 2.2% compared to 2.3% a year earlier.
Capital and Solvency
- The net own funds were strengthened by 2.4%, reaching 858 MD at the end of 2024, including the distribution of 54 MD in dividends, or 51% of the sector's net result (compared to 47% in 2023).
- In accordance with Circular No. 2025-01, leasing companies constituted collective provisions of 63 MD, representing 1.5% of current commitments (compared to 1.3% in 2023). The basic own funds now represent 84% of total own funds, compared to 81% in 2023, reflecting better quality capital.
- The leasing sector maintains a solid solvency margin, with a Tier 1 ratio of 13.6% and a global ratio of 16.1% at the end of 2024. The majority of institutions have solvency ratios above 15%, while all companies have Tier 1 ratios above 10%, confirming the sector's resilience and structural solidity.
