Union Bancaire pour le Commerce et I’Industrie – Ratings 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 Union Bancaire pour le Commerce et I’Industrie (UBCI or the Bank) at ‘C+’ and ‘C’, respectively. At the same time, CI Ratings has affirmed UBCI’s Bank Standalone Rating (BSR) of ‘c’, Core Financial Strength (CFS) rating of ‘b+’ and Extraordinary Support Level (ESL) of Uncertain. The Outlook for the LT FCR and BSR remains Stable.
UBCI’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 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.
UBCI’s BSR of ‘c’ (CI does not append ‘+/-’ modifiers to BSRs in the ‘c’ category) is derived from a CFS rating of ‘b+’ and an Operating Environment Risk Anchor (OPERA) of ‘c+’ (with the latter indicating significant risk). The BSR incorporates CI’s assessment of UBCI’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 banking sector.
The CFS is underpinned by credit strengths of satisfactory asset quality together with good loan-loss reserve (LLR) coverage (although based on Tunisian standards), a good level of operating income relative to the balance sheet, improved ROAA supported by sound margins, a high level of net broad liquid assets, together with an overall adequate funding and liquidly profile. The CFS also incorporates a very challenging operating environment, with the Tunisian economy remaining weak due to refinancing pressure, a modest domestic banking franchise, a high operating expense base, and limited financial disclosure with accounting based on Tunisian standards (as is the case for the sector).
The ESL is assessed as Uncertain. In CI’s opinion, the likelihood of the Bank receiving timely and sufficient extraordinary support from the reference shareholder, the Carte Group, is uncertain. Although Carte may be willing to support the Bank in case of need, CI is unsure of its capacity to provide sufficient and timely support. Moreover, as only the 11th-largest bank in Tunisia, we do not consider UBCI to be of systemic importance to the sector. Thus, the likelihood of support from the authorities is also unclear. Carte is a key player in the Tunisian insurance sector. Although insurance is its focus, Carte is also active in real estate, tourism, industry, media and IT through subsidiaries and participations.
UBCI’s loan asset quality is satisfactory and has been reasonable for some years, despite challenging economic conditions in Tunisia, as reflected by the rise in NPLs in 2025. The Bank’s NPL ratio of 6.4% remains well below both the sector NPL ratio (around 14.0%) and the peer group. In the four years following the change in ownership in 2021, management has placed an increased emphasis on growth, outpacing that of the sector. UBCI has been increasingly directing its lending efforts toward individuals and corporates. Although some provisioning elements of IFRS 9 are now followed, disclosure of Stage 1, 2 and 3 loans is not provided. We expect most Tunisian banks to have a large stock of Stage 2 loans. UBCI’s credit loss-absorption capacity is viewed as satisfactory. LLR coverage remained more than full at end-2025. The Bank generates an adequate level of operating profits that has some capacity to absorb more provisioning expenses if required.
The Bank’s earnings strength in terms of revenue generation has been solid for some years. UBCI achieved good results in 2025, with both operating and net profit higher, with ROAA in particular rising, although aided by a lower effective tax rate. Operating income on average assets is at a good level, and margins are high. UBCI’s net interest margin is the second-highest in the CI-rated Tunisian bank peer group. However, the operating cost base, on the other hand, is very high, and UBCI’s cost-to-income ratio is the highest in the peer group, in part reflecting its investment in information systems which is now completed. These factors result in a ROAA which remains below the peer average. The P&L statement for H1 26 for bank-only figures showed an increase of 9.5% in net profit for the period, to TND30mn. Operating income was higher, driven by further gains from the securities portfolio.
UBCI’s liquidity position is satisfactory, as is the funding profile. The broad liquid asset ratio is satisfactory, as is the liquidity coverage ratio. Central bank funding (sourced by most other Tunisian banks in the sector) increased in 2025 as term loans rose. Loan-based funding ratios are satisfactory, with the majority of the balance sheet funded by customer deposits. The Bank receives small funding facilities from international agencies such as EBRD, PROPARCO and the EIB.
The Bank’s CAR strengthened to 14.6% in 2025 as profitability and internal capital generation rose. Nonetheless, it does not provide a significant buffer to absorb shocks. Shareholders may participate in any core capital raising if necessary. UBCI could issue Tier 2 subordinated debt qualifying as supplementary capital on the local market, but this would not be loss-absorbing.
Rating Outlook
The Outlook for the LT FCR is Stable and in line with CI’s internal assessment of sovereign credit risk for Tunisia. CI expects UBCI to maintain its overall financials at a satisfactory level this year. Credit risk will remain the main challenges. Profitability and liquidity are expected to remain adequate.
Rating Dynamics: Upside Scenario
The Outlook may be revised to Positive, but this would require improvement in the operating environment and would need to be preceded by a similar rating action on the sovereign, all other factors remaining unchanged.
Rating Dynamics: Downside Scenario
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 deteriorate beyond our base line scenario, negatively impacting UBCI’s financial profile.
Contact
Primary Analyst: Darren Stubing, Senior Credit Analyst; E-mail: ...
Secondary Analyst: Karti Inamdar, 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 source was 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 July 2015. 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 Union Bancaire pour le Commerce et I’Industrie (UBCI or the Bank) at ‘C+’ and ‘C’, respectively. At the same time, CI Ratings has affirmed UBCI’s Bank Standalone Rating (BSR) of ‘c’, Core Financial Strength (CFS) rating of ‘b+’ and Extraordinary Support Level (ESL) of Uncertain. The Outlook for the LT FCR and BSR remains Stable.
UBCI’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 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.
UBCI’s BSR of ‘c’ (CI does not append ‘+/-’ modifiers to BSRs in the ‘c’ category) is derived from a CFS rating of ‘b+’ and an Operating Environment Risk Anchor (OPERA) of ‘c+’ (with the latter indicating significant risk). The BSR incorporates CI’s assessment of UBCI’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 banking sector.
The CFS is underpinned by credit strengths of satisfactory asset quality together with good loan-loss reserve (LLR) coverage (although based on Tunisian standards), a good level of operating income relative to the balance sheet, improved ROAA supported by sound margins, a high level of net broad liquid assets, together with an overall adequate funding and liquidly profile. The CFS also incorporates a very challenging operating environment, with the Tunisian economy remaining weak due to refinancing pressure, a modest domestic banking franchise, a high operating expense base, and limited financial disclosure with accounting based on Tunisian standards (as is the case for the sector).
The ESL is assessed as Uncertain. In CI’s opinion, the likelihood of the Bank receiving timely and sufficient extraordinary support from the reference shareholder, the Carte Group, is uncertain. Although Carte may be willing to support the Bank in case of need, CI is unsure of its capacity to provide sufficient and timely support. Moreover, as only the 11th-largest bank in Tunisia, we do not consider UBCI to be of systemic importance to the sector. Thus, the likelihood of support from the authorities is also unclear. Carte is a key player in the Tunisian insurance sector. Although insurance is its focus, Carte is also active in real estate, tourism, industry, media and IT through subsidiaries and participations.
UBCI’s loan asset quality is satisfactory and has been reasonable for some years, despite challenging economic conditions in Tunisia, as reflected by the rise in NPLs in 2025. The Bank’s NPL ratio of 6.4% remains well below both the sector NPL ratio (around 14.0%) and the peer group. In the four years following the change in ownership in 2021, management has placed an increased emphasis on growth, outpacing that of the sector. UBCI has been increasingly directing its lending efforts toward individuals and corporates. Although some provisioning elements of IFRS 9 are now followed, disclosure of Stage 1, 2 and 3 loans is not provided. We expect most Tunisian banks to have a large stock of Stage 2 loans. UBCI’s credit loss-absorption capacity is viewed as satisfactory. LLR coverage remained more than full at end-2025. The Bank generates an adequate level of operating profits that has some capacity to absorb more provisioning expenses if required.
The Bank’s earnings strength in terms of revenue generation has been solid for some years. UBCI achieved good results in 2025, with both operating and net profit higher, with ROAA in particular rising, although aided by a lower effective tax rate. Operating income on average assets is at a good level, and margins are high. UBCI’s net interest margin is the second-highest in the CI-rated Tunisian bank peer group. However, the operating cost base, on the other hand, is very high, and UBCI’s cost-to-income ratio is the highest in the peer group, in part reflecting its investment in information systems which is now completed. These factors result in a ROAA which remains below the peer average. The P&L statement for H1 26 for bank-only figures showed an increase of 9.5% in net profit for the period, to TND30mn. Operating income was higher, driven by further gains from the securities portfolio.
UBCI’s liquidity position is satisfactory, as is the funding profile. The broad liquid asset ratio is satisfactory, as is the liquidity coverage ratio. Central bank funding (sourced by most other Tunisian banks in the sector) increased in 2025 as term loans rose. Loan-based funding ratios are satisfactory, with the majority of the balance sheet funded by customer deposits. The Bank receives small funding facilities from international agencies such as EBRD, PROPARCO and the EIB.
The Bank’s CAR strengthened to 14.6% in 2025 as profitability and internal capital generation rose. Nonetheless, it does not provide a significant buffer to absorb shocks. Shareholders may participate in any core capital raising if necessary. UBCI could issue Tier 2 subordinated debt qualifying as supplementary capital on the local market, but this would not be loss-absorbing.
Rating Outlook
The Outlook for the LT FCR is Stable and in line with CI’s internal assessment of sovereign credit risk for Tunisia. CI expects UBCI to maintain its overall financials at a satisfactory level this year. Credit risk will remain the main challenges. Profitability and liquidity are expected to remain adequate.
Rating Dynamics: Upside Scenario
The Outlook may be revised to Positive, but this would require improvement in the operating environment and would need to be preceded by a similar rating action on the sovereign, all other factors remaining unchanged.
Rating Dynamics: Downside Scenario
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 deteriorate beyond our base line scenario, negatively impacting UBCI’s financial profile.
Contact
Primary Analyst: Darren Stubing, Senior Credit Analyst; E-mail: ...
Secondary Analyst: Karti Inamdar, 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 source was 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 July 2015. 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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