Banque Internationale Arabe de Tunisie – Ratings and Outlook Affirmed
(MENAFN- Capital Intelligence Ltd) 16 October 2026
Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed the Long-Term Foreign Currency Rating (LT FCR) and Short-Term Foreign Currency Rating (ST FCR) of Banque Internationale Arabe de Tunisie (BIAT or the Bank) at ‘C+’ and ‘C’, respectively. At the same time, CI Ratings has affirmed BIAT’s Bank Standalone Rating (BSR) of ‘c’, Core Financial Strength (CFS) rating of ‘bb-’ and Extraordinary Support Level (ESL) of Moderate. The Outlook for the LT FCR and BSR remains Stable.
BIAT’s LT FCR and BSR are constrained by CI’s internal assessment of sovereign credit risk for Tunisia. The Stable Outlook for the LT FCR is in line with CI’s internal assessment of sovereign risk for Tunisia, reflecting tentative signs of stabilising sovereign risk factors, albeit still at a very high level. The outlook takes into consideration the narrowing current account deficit, supported by an increase in agricultural exports and tourism receipts. However, external refinancing risks remain high, aggravated by large external financing needs and limited financing options given the absence of direct access to capital markets. Political risk remains elevated and public finances remain weak. Downside risks for the banking sector remain high, and pressure on banks’ credit profiles elevated due to financial stability risks and macroeconomic vulnerabilities.
BIAT’s BSR of ‘c’ (CI does not append ‘+/-’ modifiers to BSRs in the ‘c’ category) is derived from a CFS rating of ‘bb-’ and an Operating Environment Risk Anchor (OPERA) of ‘c+’ (with the latter indicating significant risk). The BSR incorporates CI’s assessment of BIAT’s capacity to withstand sovereign-linked economic and financial stress. In a sovereign event, the Bank’s liquidity, capital and asset quality would be negatively impacted, as would that of the wider Tunisian banking sector.
The ESL of Moderate balances the weak financial strength of the sovereign against the strong willingness of the government to support the Bank, particularly since it is the largest in the country with a substantial customer deposit base. Ownership is diverse, but the main reference shareholder remains the well-known Tunisian group Mabrouk.
The CFS is supported by the Bank’s strong domestic franchise, good revenue stream and high profitability, and a satisfactory liquidity and funding base. BIAT is the largest bank in Tunisia, with a solid and defendable franchise, and its market share of customer deposits is the highest by some margin. The CFS is constrained by a very difficult economic and operating environment, a fairly low capital buffer, inadequate financial disclosures, and high sovereign exposure (equivalent to an estimated 1.5x equity).
BIAT’s earnings strength in terms of revenue generation is good, as is profitability. The Bank has the highest operating profitability ratio and amongst the highest ROAAs in the peer group. Operating income on average assets remains at a strong level. BIAT’s cost of funds is the lowest in the peer group, margins are adequate, and operating efficiency is satisfactory. Bank-only net profit in H1 26 was higher, boosted by higher interest income from the securities portfolio, as well as gains on trading securities and financial transactions. In contrast to the previous year, the cost of risk declined significantly in H1 26. We expect reasonable results for full-year 2026, though headwinds remain from Central Bank of Tunisia (CBT) rules and legislative measures, although BIAT has not been impacted to the same extent as other Tunisian banks. These regulations include interest rate reductions for certain existing customers, and the requirement to provide interest-free loans amounting to at least 8% of the previous year’s net profit to micro, small and medium-sized enterprises. Banks are required to fund these loans from their own resources without customer guarantees, and bear the associated credit risk with no recourse to the CBT. Additionally, the income tax rate for banks remains elevated at 40% (up from 35% effective January 2025). Improved GDP growth should support credit demand, albeit modestly.
Loan asset quality is satisfactory by Tunisian standards. The NPL ratio declined to 8.1% at end-2025 (down from 8.6% in 2024). BIAT’s NPL ratio remains significantly below the sector NPL ratio of around 13-15%. Loan-loss reserve coverage is solid, and improved in 2025 to 112.6% (up from 103.0% at end-2024). Based on a total risk basis (ie: including both loans and contingencies), the NPL ratio is 6.7% and the coverage ratio is 81%. Although Tunisian banks have moved partly to IFRS 9, disclosure of Stage 1, 2 and 3 loans is not provided in published financial statements. Credit risks will remain elevated due to the still challenging Tunisian economy, high interest rates, and subdued economic growth. Despite the tough operating environment, BIAT has done well, maintaining reasonably good loan asset quality. This has been aided by good credit management, with prudent loan approval and ongoing monitoring of its loan portfolio.
The investment portfolio details are not provided in the accounts but mainly comprise Tunisian dinar-denominated government securities. The investment portfolio expanded by almost 26% at end-2025, accounting for around one-third of total assets. Tunisian government treasury bills and bonds amount to around 1.5x the Bank’s equity, indicating a concentration risk to the sovereign. Treasury bills/bonds are all Tunisian dinar-denominated. They can be repurchased through the CBT’s discount window, but there is a limited secondary market and thus not considered highly liquid.
The Bank’s capital ratios remain among the highest in the peer group and are satisfactory in CI’s view. However, the Bank’s overall capital position provides only a relatively limited buffer against unexpected losses or financial shocks. The internal capital generation rate improved to 6% in 2025 (from 5% in 2024), supported by solid profit growth and a lower dividend payout ratio.
Liquidity and funding are considered satisfactory. Liquid assets are at an adequate level, and the growth in customer deposits was robust and exceeded the growth reported for the sector. BIAT’s liquidity coverage ratio is exceptionally good, remaining well above the 100% regulatory minimum, and loan-based funding ratios are satisfactory. The Bank holds the largest share of customer deposits in the market. BIAT has had nil to immaterial reliance on central bank funding over the past six years, including H1 26, unlike most peer banks. The liquidity position for the bank-only balance sheet at end-June 2026 remained sound.
Rating Outlook
The Stable Outlook reflects our expectation that the ratings are unlikely to change over the next 12 months and is in line with CI’s internal assessment of sovereign credit risk for Tunisia. CI expects BIAT to maintain its overall financials at a satisfactory level this year. Credit risk will remain the main challenge, while profitability and liquidity are expected to remain adequate.
Rating Dynamics: Upside Scenario
The Outlook may be revised to Positive, but this would require further improvement in the operating environment and would need to be preceded by an upward revision of our internal assessment of sovereign credit risk for Tunisia, all other factors remaining unchanged.
Rating Dynamics: Downside Scenario
Although not our base case, the Outlook could be revised to Negative or the ratings reduced by one notch in the next 12 months if the operating environment and/or economy weaken by more than expected, negatively impacting the Bank’s financial profile.
Contact
Primary Analyst: Evridiki Panayi, Credit Analyst; E-mail: ...
Secondary Analyst: Darren Stubing, Senior Credit Analyst
Committee Chairperson: Morris Helal, Senior Credit Analyst
About the ratings
The credit ratings have been issued by Capital Intelligence Ratings Ltd, P.O. Box 53585, Limassol 3303, Cyprus.
The following information sources were used to prepare the credit ratings: public information. Financial data and metrics have been derived by CI from the rated entity’s financial statements for FY2021-25. CI may also have relied upon non-public financial information provided by the rated entity and may also have used financial information from credible, independent third-party data providers.
CI considers the quality of information available on the rated entity to be satisfactory for the purposes of assigning and maintaining credit ratings. CI does not audit or independently verify information received during the rating process.
The principal methodology used to determine the ratings is the Bank Rating Methodology, dated 3 April 2019. For the methodology and our definition of default see Information on rating scales and definitions and the time horizon of rating outlooks can be found at Historical performance data, including default rates, are available from a central repository established by ESMA (CEREP) at
This rating action follows a scheduled periodic (annual) review of the rated entity. Ratings on the entity were first released in December 1993. The ratings were last updated in October 2025. The ratings and rating outlook were disclosed to the rated entity prior to publication and were not amended following that disclosure.
The ratings have been initiated by CI. The following scheme is therefore applicable in accordance with EU regulatory guidelines.
Unsolicited Credit Rating
With Rated Entity or Related Third Party Participation:No
With Access to Internal Documents: No
With Access to Management: No
Conditions of Use and General Limitations
The information contained in this publication including opinions, views, data, material and ratings may not be copied, distributed, altered or otherwise reproduced, in whole or in part, in any form or manner by any person except with the prior written consent of Capital Intelligence Ratings Ltd (hereinafter “CI”). All information contained herein has been obtained from sources believed to be accurate and reliable. However, because of the possibility of human or mechanical error or other factors by third parties, CI or others, the information is provided “as is” and CI and any third-party providers make no representations, guarantees or warranties whether express or implied regarding the accuracy or completeness of this information.
Without prejudice to the generality of the foregoing, CI and any third-party providers accept no responsibility or liability for any losses, errors or omissions, however caused, or for the results obtained from the use of this information. CI and any third-party providers do not accept any responsibility or liability for any damages, costs, expenses, legal fees or losses or any indirect or consequential loss or damage including, without limitation, loss of business and loss of profits, as a direct or indirect consequence of or in connection with or resulting from any use of this information.
Credit ratings and credit-related analysis issued by CI are current opinions as of the date of publication and not statements of fact. CI’s credit ratings provide a relative ranking of credit risk. They do not indicate a specific probability of default over any given time period. The ratings do not address the risk of loss due to risks other than credit risk, including, but not limited to, market risk and liquidity risk. CI’s ratings are not a recommendation to purchase, sell, or hold any security and do not comment as to market price or suitability of any security for a particular investor. Further information on the attributes and limitations of ratings can be found in the applicable methodology or else at
The information contained in this publication does not constitute investment or financial advice. As the ratings and analysis are opinions of CI they should be relied upon to a limited degree and users of this information should conduct their own risk assessment and due diligence before making any investment or other business decisions.
Copyright © Capital Intelligence Ratings Ltd 2026
Capital Intelligence Ratings (CI Ratings or CI) today announced that it has affirmed the Long-Term Foreign Currency Rating (LT FCR) and Short-Term Foreign Currency Rating (ST FCR) of Banque Internationale Arabe de Tunisie (BIAT or the Bank) at ‘C+’ and ‘C’, respectively. At the same time, CI Ratings has affirmed BIAT’s Bank Standalone Rating (BSR) of ‘c’, Core Financial Strength (CFS) rating of ‘bb-’ and Extraordinary Support Level (ESL) of Moderate. The Outlook for the LT FCR and BSR remains Stable.
BIAT’s LT FCR and BSR are constrained by CI’s internal assessment of sovereign credit risk for Tunisia. The Stable Outlook for the LT FCR is in line with CI’s internal assessment of sovereign risk for Tunisia, reflecting tentative signs of stabilising sovereign risk factors, albeit still at a very high level. The outlook takes into consideration the narrowing current account deficit, supported by an increase in agricultural exports and tourism receipts. However, external refinancing risks remain high, aggravated by large external financing needs and limited financing options given the absence of direct access to capital markets. Political risk remains elevated and public finances remain weak. Downside risks for the banking sector remain high, and pressure on banks’ credit profiles elevated due to financial stability risks and macroeconomic vulnerabilities.
BIAT’s BSR of ‘c’ (CI does not append ‘+/-’ modifiers to BSRs in the ‘c’ category) is derived from a CFS rating of ‘bb-’ and an Operating Environment Risk Anchor (OPERA) of ‘c+’ (with the latter indicating significant risk). The BSR incorporates CI’s assessment of BIAT’s capacity to withstand sovereign-linked economic and financial stress. In a sovereign event, the Bank’s liquidity, capital and asset quality would be negatively impacted, as would that of the wider Tunisian banking sector.
The ESL of Moderate balances the weak financial strength of the sovereign against the strong willingness of the government to support the Bank, particularly since it is the largest in the country with a substantial customer deposit base. Ownership is diverse, but the main reference shareholder remains the well-known Tunisian group Mabrouk.
The CFS is supported by the Bank’s strong domestic franchise, good revenue stream and high profitability, and a satisfactory liquidity and funding base. BIAT is the largest bank in Tunisia, with a solid and defendable franchise, and its market share of customer deposits is the highest by some margin. The CFS is constrained by a very difficult economic and operating environment, a fairly low capital buffer, inadequate financial disclosures, and high sovereign exposure (equivalent to an estimated 1.5x equity).
BIAT’s earnings strength in terms of revenue generation is good, as is profitability. The Bank has the highest operating profitability ratio and amongst the highest ROAAs in the peer group. Operating income on average assets remains at a strong level. BIAT’s cost of funds is the lowest in the peer group, margins are adequate, and operating efficiency is satisfactory. Bank-only net profit in H1 26 was higher, boosted by higher interest income from the securities portfolio, as well as gains on trading securities and financial transactions. In contrast to the previous year, the cost of risk declined significantly in H1 26. We expect reasonable results for full-year 2026, though headwinds remain from Central Bank of Tunisia (CBT) rules and legislative measures, although BIAT has not been impacted to the same extent as other Tunisian banks. These regulations include interest rate reductions for certain existing customers, and the requirement to provide interest-free loans amounting to at least 8% of the previous year’s net profit to micro, small and medium-sized enterprises. Banks are required to fund these loans from their own resources without customer guarantees, and bear the associated credit risk with no recourse to the CBT. Additionally, the income tax rate for banks remains elevated at 40% (up from 35% effective January 2025). Improved GDP growth should support credit demand, albeit modestly.
Loan asset quality is satisfactory by Tunisian standards. The NPL ratio declined to 8.1% at end-2025 (down from 8.6% in 2024). BIAT’s NPL ratio remains significantly below the sector NPL ratio of around 13-15%. Loan-loss reserve coverage is solid, and improved in 2025 to 112.6% (up from 103.0% at end-2024). Based on a total risk basis (ie: including both loans and contingencies), the NPL ratio is 6.7% and the coverage ratio is 81%. Although Tunisian banks have moved partly to IFRS 9, disclosure of Stage 1, 2 and 3 loans is not provided in published financial statements. Credit risks will remain elevated due to the still challenging Tunisian economy, high interest rates, and subdued economic growth. Despite the tough operating environment, BIAT has done well, maintaining reasonably good loan asset quality. This has been aided by good credit management, with prudent loan approval and ongoing monitoring of its loan portfolio.
The investment portfolio details are not provided in the accounts but mainly comprise Tunisian dinar-denominated government securities. The investment portfolio expanded by almost 26% at end-2025, accounting for around one-third of total assets. Tunisian government treasury bills and bonds amount to around 1.5x the Bank’s equity, indicating a concentration risk to the sovereign. Treasury bills/bonds are all Tunisian dinar-denominated. They can be repurchased through the CBT’s discount window, but there is a limited secondary market and thus not considered highly liquid.
The Bank’s capital ratios remain among the highest in the peer group and are satisfactory in CI’s view. However, the Bank’s overall capital position provides only a relatively limited buffer against unexpected losses or financial shocks. The internal capital generation rate improved to 6% in 2025 (from 5% in 2024), supported by solid profit growth and a lower dividend payout ratio.
Liquidity and funding are considered satisfactory. Liquid assets are at an adequate level, and the growth in customer deposits was robust and exceeded the growth reported for the sector. BIAT’s liquidity coverage ratio is exceptionally good, remaining well above the 100% regulatory minimum, and loan-based funding ratios are satisfactory. The Bank holds the largest share of customer deposits in the market. BIAT has had nil to immaterial reliance on central bank funding over the past six years, including H1 26, unlike most peer banks. The liquidity position for the bank-only balance sheet at end-June 2026 remained sound.
Rating Outlook
The Stable Outlook reflects our expectation that the ratings are unlikely to change over the next 12 months and is in line with CI’s internal assessment of sovereign credit risk for Tunisia. CI expects BIAT to maintain its overall financials at a satisfactory level this year. Credit risk will remain the main challenge, while profitability and liquidity are expected to remain adequate.
Rating Dynamics: Upside Scenario
The Outlook may be revised to Positive, but this would require further improvement in the operating environment and would need to be preceded by an upward revision of our internal assessment of sovereign credit risk for Tunisia, all other factors remaining unchanged.
Rating Dynamics: Downside Scenario
Although not our base case, the Outlook could be revised to Negative or the ratings reduced by one notch in the next 12 months if the operating environment and/or economy weaken by more than expected, negatively impacting the Bank’s financial profile.
Contact
Primary Analyst: Evridiki Panayi, Credit Analyst; E-mail: ...
Secondary Analyst: Darren Stubing, Senior Credit Analyst
Committee Chairperson: Morris Helal, Senior Credit Analyst
About the ratings
The credit ratings have been issued by Capital Intelligence Ratings Ltd, P.O. Box 53585, Limassol 3303, Cyprus.
The following information sources were used to prepare the credit ratings: public information. Financial data and metrics have been derived by CI from the rated entity’s financial statements for FY2021-25. CI may also have relied upon non-public financial information provided by the rated entity and may also have used financial information from credible, independent third-party data providers.
CI considers the quality of information available on the rated entity to be satisfactory for the purposes of assigning and maintaining credit ratings. CI does not audit or independently verify information received during the rating process.
The principal methodology used to determine the ratings is the Bank Rating Methodology, dated 3 April 2019. For the methodology and our definition of default see Information on rating scales and definitions and the time horizon of rating outlooks can be found at Historical performance data, including default rates, are available from a central repository established by ESMA (CEREP) at
This rating action follows a scheduled periodic (annual) review of the rated entity. Ratings on the entity were first released in December 1993. The ratings were last updated in October 2025. The ratings and rating outlook were disclosed to the rated entity prior to publication and were not amended following that disclosure.
The ratings have been initiated by CI. The following scheme is therefore applicable in accordance with EU regulatory guidelines.
Unsolicited Credit Rating
With Rated Entity or Related Third Party Participation:No
With Access to Internal Documents: No
With Access to Management: No
Conditions of Use and General Limitations
The information contained in this publication including opinions, views, data, material and ratings may not be copied, distributed, altered or otherwise reproduced, in whole or in part, in any form or manner by any person except with the prior written consent of Capital Intelligence Ratings Ltd (hereinafter “CI”). All information contained herein has been obtained from sources believed to be accurate and reliable. However, because of the possibility of human or mechanical error or other factors by third parties, CI or others, the information is provided “as is” and CI and any third-party providers make no representations, guarantees or warranties whether express or implied regarding the accuracy or completeness of this information.
Without prejudice to the generality of the foregoing, CI and any third-party providers accept no responsibility or liability for any losses, errors or omissions, however caused, or for the results obtained from the use of this information. CI and any third-party providers do not accept any responsibility or liability for any damages, costs, expenses, legal fees or losses or any indirect or consequential loss or damage including, without limitation, loss of business and loss of profits, as a direct or indirect consequence of or in connection with or resulting from any use of this information.
Credit ratings and credit-related analysis issued by CI are current opinions as of the date of publication and not statements of fact. CI’s credit ratings provide a relative ranking of credit risk. They do not indicate a specific probability of default over any given time period. The ratings do not address the risk of loss due to risks other than credit risk, including, but not limited to, market risk and liquidity risk. CI’s ratings are not a recommendation to purchase, sell, or hold any security and do not comment as to market price or suitability of any security for a particular investor. Further information on the attributes and limitations of ratings can be found in the applicable methodology or else at
The information contained in this publication does not constitute investment or financial advice. As the ratings and analysis are opinions of CI they should be relied upon to a limited degree and users of this information should conduct their own risk assessment and due diligence before making any investment or other business decisions.
Copyright © Capital Intelligence Ratings Ltd 2026
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