Bank in the DG at more than 3 mTD/D, it goes under the fine comb of the CNSS

The most Moroccan of banks in Tunisia does not stop making money, and every year even more. In 2021, the year of all the crises, its NBI increased by 35.356 MTD, its operating result by an additional 5.542 MTD compared to 2020, and the Moroccan bank under Tunisian law earned 28.33 MTD more than the previous year. Great good for him!

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And this is what happens to the parent bank and its subsidiaries which also draw subsidies from the Tunisian subsidiary. Indeed, and it is on agreement that Attijari recorded 5,080 MTD for the mother “Wafabank” for technical assistance, 1,080 (Liabilities of 7,295 MTD) for “Attijari IT Africa”, 0.63 MTD for “Attijari Salaf », and 1.146 MTD for Attijariwafa Europe. That is to say almost 8 MTD which were invoiced for 2021, without counting the sums in liabilities in remuneration for all these subsidiary institutions of the parent bank. It should be noted that the question of agreements does not, however, only concern this bank.

A bank that takes a lot and gives little

A bank under Tunisian law with Moroccan participation, the financing commitments issued by Attijari presented a balance of 268.727 MTD at the end of 2021. Opposite, the guarantees received amount to 2,954,975 billion DT as of December 31, 2021. That is to say that the guarantees taken represented more than 9 times the amount of the commitments given. This, at a time when Tunisian SMEs complain of little and difficult access to bank financing. With such levels of guarantees, certainly requested, they are easily understood. This, too, is not just about this bank.

It is also known, the bank works with the money of its customers. In 2021, customer deposits and assets amounted to more than 8.5 billion DT, resources with very little or no remuneration. Compared to the 0.268 billion DT given in financing commitments, this provides another angle of analysis on a part of a financial system which makes its butter, a lot of butter, on the backs of customers.

After the tax audit, here is the social audit

But Attijari is also a bank that has been dragging out a tax audit since 2019. It had, in fact, received a tax audit notice covering the periods from January 1, 2014 to December 31, 2018. The report of the auditors for the financial year 2021 says nothing about the outcome of this tax adjustment.

For the 2021 financial year, on the other hand, we consider it useful to draw your attention to the note “Notification social control” in the financial statements, relating to a notification of social control received in October 2020. The procedures related to this control are still in progress by the competent departments of the Fund National Social Security Fund, the final impact cannot be precisely estimated at the date of this report “. This is what the CCs of the bank point out in the latest balance sheet for the financial year 2021.

A DG at 3,350 DT, admittedly gross, per day

While waiting for the result of these checks, note that at this bank, 188.134 MTD in gross are distributed in remuneration and wages for 1717 active employees. A little more than 2.557 MTD go to the first rank staff, such as the 12 members of the Board, all already senior officials and businessmen, the CEO and his deputies and the 14 other members of the various committees, including more than 1.222 MTD representing a little more than 4 million Moroccan dirhams (4,022,867.44 DT according to converter) in gross for the only CEO who is the Moroccan Saïd Sebti.

Furthermore, the Chairman of the Board of Directors, remunerated at more than 32,000 DT per month or more than 1,000 DT gross per day by decision of the same Board of Directors, benefits from a company car and telephone charges.

The remuneration and benefits granted to the CEO and which correspond to a salary of 3,350 TND gross per day, are composed of a fixed allowance and a variable annual bonus according to the achievement of objectives. This, in addition to a company car with the support of utility costs, telephone costs, tuition, accommodation costs and airfare.

Risks, clearly identified by its CCs

The audit of the accounts also identified certain risks, and placed them in key points. First and most important risk identified by the auditors (CC), that relating to the assessment of provisions for impairment of customer commitments. “The bank is exposed to counterparty risk both on its portfolio of direct commitments and on signature commitments given to customers. This risk, inherent to the banking activity, constitutes a major area of ​​attention given the amounts involved, the classification process, and the methods for determining provisions for credit risk (…). As of December 31, 2021, the net value of receivables from customers amounted to 6,344,685 thousand DT (6.344 billion DT), representing 62% of the balance sheet total, and the provisions constituted to cover counterparty risk amounted to 327 thousand 988 KDT (on balance sheet and off-balance sheet commitments)”, according to the CC. By simple calculator, we learn that the bank has only covered these receivables at a very low level. This is what seems to us, unless the bank answers us as it has always refused.

Another risk identified by the CCs is that relating to the taking into account of interest, commissions and bank charges as income. This risk is estimated, as of December 31, 2021, at 671,159 thousand TND, which represents 82% of total banking operating income. The CCs say that “although most of this income is generated and accounted for automatically by the bank’s information system, we have nevertheless considered, given the large volume of transactions, that taking interest and commissions into account constitutes a key audit matter”.

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