rapport annuel stusid 2010 Ang 64.indd
Transcription
rapport annuel stusid 2010 Ang 64.indd
ANNUAL REPORT 2010 A limited company with a capital of 100 millions Dinars 32, Rue Hédi Karray,1082 Tunis B.P.20 - Tunis 1002 Phone.: ( 216 ) 71 232 133 Telefax.: ( 216 ) 71 753 233 Telex.: 13594 TUSID / Swift : TSIDTNTT R.C.: B16641997 / VAT Code : 013026/E/A/M/000 Summary Address of Chairman of Board of Directors to Ordinary General Assembly 6 Presentation of STUSID BANK 9 Involvment Forms 10 ECONOMIC ENVIRONMENT 11 World Economic Situation 12 National Economic Situation 14 STUSID BANK’S ACTIVITY 21 Financial Resources 22 Bank’s Interventions 24 STUSID BANK’S RESULTS 31 Activity Indicators 32 Stockholders’ Equity and Distribution of Profits 35 Evolution of STUSID BANK’s Results 36 Risk Management and Prudential Ratios 36 DIVERSIFICATION OF STUSID BANK’S ACTIVITY 37 FINANCIAL SITUATION AS OF END DECEMBER 2010 AND 2009 43 Balance Sheets 44 Prudential Standards 45 Off-Balance Sheet Commitments 45 Income Statements 46 Cashflow Statements 48 Auditor’s General Report 49 Auditors’ Special Report 51 CONSOLIDATED FINANCIAL INFORMATION OF STUSID BANK GROUP 55 Consolidated Balance Sheets 59 Consolidated Off Balance Sheet Commitments 60 Consolidated Income Statements 61 Consolidated cashflow Statements 62 Auditor’s General Report 63 Ordinary General Assembly’s Resolutions 65 Board of Directors Chairman of Board of Directors Managing Director M. Ahmed Farid ALAWLAKI M. Mohamed Laroussi BOUZIRI Mr Ahmed Farid ALAWLAKI was designated as STUSID BANK’s Chairman as from 24th November 2010 in substitution to Dr. Abdulaziz ALNASRULLAH M. Abdulaziz Ben Brahim ALAMR Financial Advisor of Saudi General Investment Fund at Ministry of Finance Kingdom of Saudia Arabia M. Samir MLAOUHIA Managing Director – Arab Maghreb Financing Development Institute Republic of Tunisia M. Hamad Ben Soulaiman AL NAJACHI General Manager of International Relations, Ministry of Finance Kingdom of Saudia Arabia Mme. Amel RIHANE Director – Participation Department Ministry of Finance Republic of Tunisia M. Mohamed SHEYAA Manager of Insurance Control Arab Saudi Monetary Fund Kingdom of Saudia Arabia M. Zakaria HAMAD Private Secretary of Technology Republic of Tunisia M. Adel ALHOWAR : Senior Executive Vice President ( Head of individual Banking Sector ) ALAHLY Bank Kingdom of Saudia Arabia M. Mohamed Moez ZOUARI General Managing Director of National Oil Office Republic Of Tunisia Ms Amel RIHANE was designated as member of board of Directors as from 1st June 2011 in substitution to Mr Messaoud ALAOUI Mr Zakaria HAMAD was designated as member of board of Directors as from 29th Juin 2011 in substitution to Mr Tarek Zine Mr Adel ALHOWAR was designated as member of board of Directors as from 24th November 2010 in substitution to Mr Saïd SAEERI Economic Minister of Industry and ADDRESS OF CHAIRMAN OF BOARD OF DIRECTORS TO ORDINARY GENERAL ASSEMBLY In the Name of Allah, Most Merciful, Most Magnificent Gentlemen representatives of shareholders, I have the pleasure to present you, in my own name as well as in the name of my colleagues, members of Board of Directors, the sixth annual business report of STUSID BANK since its conversion into a Global Bank on 25th April 2005, together with the financial statements as of 31st December 2010. The Tunisian economy in general and the banking sector in particular have continued to be subjected to indirect impacts of the world economic crisis, in addition to the exceptional situation experienced by the country as per the end of the year and which resulted from the Youth Revolution which led to the fall of the political system in position; which has led up to an almost-paralysis of the economic activity during many weeks. Natuarally, although this exceptional situation has no noticibeale impacts on the financing activity, happening during the last days of the year, it has resulted in some negative effects, namely in relation to the income and in particular in relation to all relating to the companies related to the previous system. Thus, the net approvals and STUSID BANK commitments relating to the medium and longterm business have crossed for the second year in succession since the establishment of the Bank the symbolic bar of 100 Millions of Dinars per annum. In fact, the net approvals relating to the medium and long term business have amounted at end 2010 to 122.1 Millions of Dinars and the commitments to 107.0 Millions of Dinars versus, respectively, 124,2 Millions of Dinars and 104,4 Millions of Dinars at end 2009. From their side, the disbursements have amounted to 98,9 Millions of Dinars at end 2010 versus 83,8 Millions of Dinars at end 2009, which means an increase by 18,1 %. Simultaneously to the highest improvement of its investment activity, STUSID BANK has multiplied, during the year 2010, its commercial operations thereby bringing the outstanding bills of its short-term business (including commitments by signature) to 205,4 Millions of Dinars versus 124,6 Millions of Dinars at end 2009, which means an increase by 65,1 %. And as it was moreover expected, such net growth of Bank’s business has reflected on the balance sheet, the aggregate of which reached 521,3 Millions of Dinars at end 2010 versus 386,2 Millions of Dinars at end 2009, which means an increase by 135,1 Millions of Dinars or by 35 %. The net debts on customers have passed from 268,5 Millions of Dinars at end 2009 to 379,1 Millions of Dinars at end 2010, which means an increase by 110,5 Millions of Dinars or by 41,9 %. The lion’s share in such increase is imputable to the net growth recorded by the loans to privates. As regards the net shareholdings, the same have recorded an increase by 400 Thousands of Dinars, thereby passing from 45,9 Millions of Dinars at end 2009 to 46,3 Millions of Dinars at end 2010. The deposits of customers have noticeably increased at end 2010, thereby passing from 151,6 Millions of Dinars at end 2009 to 252,3 Millions of Dinars at end 2010, which means an increase by 100,7 Millions of Dinars. The Bank has closed the financial year 2010 by a profit equal to 9 727 Thousands of Dinars versus 11 472 Thousands of Dinars at end financial year 2009, which means a decrease by 1 745 Thousands of Dinars or by 15,2 %. Simultaneously to such improvement that has marked its various activities, the Bank has strengthened its financial status. It has allotted for provisions (account not liable to deductions from provisions) an amount of 9,3 Millions of Dinars at end 2010, being specified that an additional amount of 2 000 Thousands of Dinars has been allotted to provisions in order to face the potential risks which will probably be caused by the exceptional events experienced by the country since the end of 2010, thereby bringing to 72,9 % the average rate of struck- off assets by provisions and agios reserved, as well as the special rate system reserve which the Ordinary General Assembly has decided to re-deploy on provisions once it will become available, and this without taking into account of real securities and financial guarantees received. As a result of the aforementioned exceptional situation and the necessity of classifying a certain number of companies as being related to the fallen system, the classified assets’ rate has recorded a slight deterioration passing from 9,3% as per the end of 2009 to 10,6 % as per the end 2010. Taken together, STUSID BANK’s financial indicators meet all prudential and regulatory standards required by monetary authorities. Gentlemen representatives of shareholders, The Board of Directors of STUSID BANK has approved new strategic orientations for the bank as for the period 2011-2014, dealing with the main following points: • Divide the bank activity into « corporate » and « retail » with the objective of reaching 75 % for « corporate » and 25 % for « retail » as for the year 2014, • Reinforce the orientation toward the small and medium companies, as for “corporate” and toward housing credits as for “retail”, • Rationalize the liquidation of resources with the objective of having 75% of the resources coming from deposits and 25% of other resources available on the market, as for the year 2014 • Review the customer deposit structure with an objective of reaching 40% of sight deposits, 40% of term deposits and 20% of saving deposits, as for the year 2014, • Reach a shareholders’ equity return rate of at least 10% and a rate of assets of at least 2%, as for the year 2014, • The risk cost has to be settled lower than 1,25%, It is understood that, for reaching these objectives, it is necessary to implement the organizational, material and human appropriate resources and in particular investments related to network in order to pass from13 agencies in 2010 to 33 agencies in 2014, in addition to the creation of new channels basing on Internet to distribute the bank products as well as the implementation of a modern and integrated information system. Those are, Gentlemen, the milestones relating to the activities of the Bank for the year 2010 and to the results to which they have led. You will find in the present report all the other details that you would need. I would like to conclude by renewing my thanks to Saudi and Tunisian authorities for their support to the bank and for their continuous encouragement. I would also present my thanks for all the Directors for all their efforts for the achievement of Bank’s objectives, as well as to all the staff for the devotion they are showing in accomplishing their work. Thank you for your kind attention. The Chairman Of Board Of Directors Mr. Ahmed Farid ALAWLAKI PRESENTATION OF STUSID BANK Corporate Name STUSID BANK Legal Form Limited Company Nationality Tunisian Registered Office 32, rue Hédi KARRAY – 1082 TUNIS Phone ( 216 ) 71 232 133 Fax ( 216 ) 71 753 233 Télex 13 594 TUSID SWIFT TSIDTNTT E-mail stusid@gnet.tn Date of Incorporation 30th May 1981 Duration 99 years Commerce Register No. B16641997 Tax Identification No. 013026/E/A/M/000 Financial Year From 1st January to 31st December of each calendar year Scope Global Bank-Approval obtained on the 25th of April, 2005 Taxation System Real system Corporate Capital 100 Millions of Dinars Capital Distribution : Amount in Dinars Kingdom of Saudi Arabia, represented by Ministry of Finance 50 000 000 Government of Republic of Tunisia 49 249 900 Tunisian Public Treasury 100 National Retirement and Social Providence Fund (CNRPS) 375 000 Tunisian National Tourism Authority (ONTT) 125 000 Tunisian State Oil Corporation (ETAP) 125 000 Tunisair Company 125 000 TOTAL 100 000 000 Involvment Forms • Shareholdings in existing enterprises or those to be created in Tunisia. • Granting of long and medium- term loans • Financing of corporate operating activities by granting short-term loans compatible with the nature of their activity. • Granting housing loans and direct loans to individuals and professionals • Granting of caution moneys or guarantees • Financing of investments accompanying the upgrading and corporate privatization programs • Partnership mounting between local and foreign investors • Investment through own funds in hands • Participation in expansion of capital and securities markets • Consultancy activities within the fields of engineering, financial restructuring and business management. • Mobilization of foreign and domestic resources 01 Economic Environment 01 Economic Environment WORLD ECONOMIC SITUATION The international world environment has been marked, during the last months of 2010, by the continuity of the economic indicator improvement in the chief industrialised countries, namely the USA. Nevertheless, in some European countries, the fears as for the sovereign debt have been raised, which resulted in the maintaining the European exchange rate under pressure compared to the other main currencies, namely the Dollar. The international prices of basic products experienced, in their turn, a tendency to grow, especially food and energy. Similarly, the indexes of the main world Stock Exchange tended to growth, in proportion with the economic perspective improvement. On this basis, the IMF reviewed its initial estimations related to the world economic growth for the year 2010, increasing it from 4,8 to 5%. The improvement of forecasts of growth for the year 2010 concerns, namely, the industrialised countries (2,5% compared to 2,2% according to the first estimations), in particular the USA (3% compared to 2,3%) and Japan (1,6% compared to 1,5%), while the IMF initial forecasts for the Euro Zone have been maintained to 1,5%. Similarly, the IMF maintained its growth forecasts for China and India to respectively 10,3% and 9,7% in 2010. 10 As for joblessness, the employment situation has recorded an improvement in the industrialised countries, with a joblessness rate of 9,4% in the USA in December 2010 compared to 9,8% one month back. Moreover, the joblessness rate has been settled at 10,1% in November of the same year in the Euro Zone and at 5,1% in Japan. As far as the international prices of basic products are concerned, they knew a growth in the end of the year 2010 for the majority of food products, due to the unsuitable weather conditions that affected many agricultural crops such as cereals in certain countries like Australia, Brazil and China. More precisely, the price increase reached, in the end of 2010 compared to the end of the last year, 46,2% for wheat and 18,9% for sugar compared to respectively 20,1% and 2,2% in the end of November. Likewise, the prices of raw industrial materials continued to be increased reaching, at the same date, 89,4% for cotton and 32,6% for copper. On the other hand, the prices of crude oil over passed 90 dollars per barrel since the start of December 2010, relating to the resumption of the world demand, stock decrease and the continuity of the cold wave that hit the USA and Europe. Thus, the barrel price has increased, in the end of 2010, to 94,75 dollars for Brent and 91,38 dollars for American light petroleum, with a growth of 21,6% and 15,1% respectively compared to the end of the previous year. As for inflation, the consumption prices recorded acceleration in the main industrialised countries, in December 2010, following the energy price growth. The inflation rate, on year-to-year basis, reached 1,5% in the USA and 2,2% in the Euro Zone. In the international Exchange markets, the Euro value recorded a decrease in 2010 compared to the Dollar, this is due to the fell of the sovereign debt crisis in some European countries and the risk of its spread in other countries of the Euro Zone. The European currency settled at, in 2010, 1,3386 dollar, thereby recording a recession of 6,6% compared to the last year. Conversely, the Yen has been valued in 2010 compared to dollar, benefiting of its choice as a refuge currency by the investors facing to the upheaval experienced by the financial international place, following the sovereign debt crisis. It has been settled, in the end of the year, at 80, 915 yens for one dollar, with an appreciation of 13,1% compared to the last year. In their turn, the central banks in many countries continued to soften their monetary politics, during 2010, via the non-conventional measures, by purchase asset programs such as Treasury bonds and commercial papers, following the American Federal Reserve and Japan Bank that agreed on respective amounts 600 billions dollars and 5.000 billions dollars of yen (about 43 billions Euros). On the contrary, central banks of some industrialised countries and emerging countries started to implement restrictive monetary politics to lighten the pressure on economy. In particular, China Bank increased the guiding interest rate twice in 2010 and the obligatory reserve rate six times in the same year. On another level, the evolution of the main international stock exchanges has diverged, during 2010. In particular, the American Stock Exchange recorded positive results, benefiting from the important interventions of the Federal Reserve in order to support the economic recovery and the improvement of the economic indicators in the USA by the end of the year. In this context, the Dow Jones and Nasdaq indexes recorded, a year end to the other, a growth of respectively 11% and 16,9%. On the contrary, many European Stock Exchanges recorded a decrease, due to the sovereign debt crisis. The CAC40 index in particular, has decreased by 3,3% between end 2009 and 2010. Similarly, Tokoyo Stock Exchange recorded a decrease, due to the appreciation of the yen, which affected the exports and thus affected the financial incomes of Japanese companies. The recession of Nikkei index has been settled at 3,3%, a year end to another. Annual Report 2010 11 NATIONAL ECONOMIC SITUATION During the past five years, the main indications of Tunisian economy- calculated at constant prices- have evolved as hereunder : In % 2006 2007 2008 2009 2010 2009-2010 Growth of GDP 5.4% 6.3% 4.6% 3.1% 3.7% + 0.6 Private consumption 4.9% 5.3% 5.0% 4.0% 4.3% + 0.3 Consumer’s Price Index 4.5% 3.1% 5.0% 3.7% 4.5% + 0.8 Exports of goods and services 11.3% 21.0% 20.6% -13.9% 14.6% + 28.5 Exports (in % of GDP) 50.8% 51.1% 53.6% 45.0% 47.8% + 2.8 Imports of goods and services 15.3% 20.3% 22.8% -13.1% 19.1% + 32.2 Imports (in % of GDP) 53.1% 53.0% 58.7% 47.9% 52.9% + 5.0 2.1% 2.4% 3.8% 2.7% 4.7% + 2.0 Investment 15.3% 11.2% 13.1% 9.3% 8.3% - 1.0 In % of GDP 23.4% 23.0% 23.5% 24.2% 24.3% + 0.1 Share of private investment 56.8% 62.4% 61.4% 56.6% 57.0% + 0.4 4 565.3 2 157.9 3 597.2 2 365.7 2 400.0 + 1,5 % Saving rate (in % of GNDI) 22.5% 21.6% 22.3% 22.0% 21.5% - 0.5 Indebtedness rate (in % of GNDI) 47.4% 39.7% 38.8% 38.1% 36.9% - 1.2 Indebtedness (in % of GDP) 53.7% 45.8% 43.3% 42.9% 39.7% - 3.2 Debt service (in % of current receipts) 16.4% 11.9% 7.8% 10.8% 9.0% - 1.8 Revenue per capita (in Dinars) 4 100.4 4 855.5 5 312.0 5 641.0 6 032.3 + 6,8% Creation of jobs 76 400 80 200 70 300 43 500 74 800 7,2% 2.8% 2.7% 1.0% 3.0% 2.6% - 0.4 Current deficit (in % of GDP) Indirect foreign investments and shareholdings (MD) Budget deficit (in % of GDP) 12 Growth It would be suitable in this context to report the following: The growth rhythm in 2010 has been increased to reach 3,5% in current prices compared to forecast 3,8% in the framework of the economic budget of the same period and compared to a growth rate of 3,1% in 2009. Save Agriculture and Fishing, the growth rate has been settled at 4,8% compared to 2,8% in 2009, resulting in improving the income per head which reached 6 032 Dinars compared to 5 641 Dinars in 2009. The evolution of added value at constant prices and by business sector presents as follows: Sectors Annual Variation (%) 2008 2009 2010 Agriculture and fishing - 0.7 6.0 - 8.8 Manufacturing industries 4.5 -5.9 9.3 Mining -4.0 -2.8 15.4 Energy -2.6 -1.7 0.6 Services 7.8 5.4 5.0 GDP 4.6 3.1 3.7 • Recession of the added value of Agricultural and Fishing sector during 2010 at the rate of 8,8% compared to a progression by 6,0% during 2009, following the recession of cereals production (10,8 millions of quintals compared to 25,3 millions in 2009) and of olive oil following the rainfall deficit. • Growth of the production of the Manufacturing Industry sector by 9,3% compared to a decrease by 5,9% during 2009. This progression concerned all the sectors, in particular mechanic and electric industries (25,2% compared to -8,3% in 2009) and chemical industries (6,9% compared to 2,3% in 2009) which benefited from the resumption of the external demand. Similarly, the textile, clothing, leather and shoe sector production has increased by 4,2% compared to a decrease by 14,8% in 2009. • The improvement of growth trend in the sector of non-manufacturing industries which has pegged at 11,5 % in 2010 by reason, in particular, of the evolution of production of Hydrocarbon sector at the rate of 19% • The increase of activities connected with Merchandising Services at the rate of 5.0 % versus 5.4 % in 2009. Annual Report 2010 13 Investments The year 2010 was characterized by the recession of investment growth which has been settled at 8,3% compared to 10,6 % in 2009. Evolution of main investment indicators (%) 2008 2009 2010 Growth of total investments 14.8 10.6 8.3 Share of total investment in GDP 24.9 25.9 24.3 Evolution of private investment 17.7 1.7 9.1 Share of private investment in total investment 62.5 57.6 57.0 7.2 4.3 3.8 Share of foreign investment in GDP Basing on the sectoral structure of investment, it appears that Agriculture and Fishing sector has recorded a growth by 5,9% in current prices in 2010 causing the investment amount to be settled at 1.035 millions of Dinars among which 61,3% return to private investors. The year 2010 has recorded a sustained growth in particular in the sector of manufacturing industries (9,5%) due to the increase of investments in the Building Material, Ceramic and Glass sector and the increase in the investments of Chemical Industry sectors by a rate of 33,3% reaching thereby 200 millions of Dinars in 2010. On the contrary, the investments of Hydrocarbon sectors, for the second consecutive year, have recorded a recession, reaching 2.000 millions of Dinars, due to the decrease of the investments in Research and Exploitation. On the other hand, investments in the other sectors have developed at a moderate rhythm contributing in the development of the investments total in the non-Manufacturing Industry sector by a rate of 1,7% in current price in 2010. Moreover, the importance of investment growth in Technology and Communication sector (12,5%) – due to the effective start of the real activity of third operator (the first operator offering a complete service coupling together mobile and fixed communication of generations II and III)-as well as the sustained investment growth in the Estate sector (14,9%) contributed to the investment growth in the Service sector by a rate of 12%. In addition to that, the volume of foreign direct investments has increased in 2010 by 2.400 millions of dinars compared to 2.366 millions of dinars in 2009 following the launching of certain great projects with foreign financings, such as the industrial pole of airline components, the SOTACIB cement unit and the extension and renovation of LAICO hotel etc. 14 The following table provides the sectoral distribution of investments achieved in 2010. unit = MD 2010 Direct Investments 2 180 Energy 1 270 Manufacturing Industries 500 Tourism 150 Services 250 Agriculture 10 Financial Portfolio 220 TOTAL 2 400 Foreign Trade In 2010, the external trade was characterised by a partial resumption of exchanges after the recession recorded during the last year. The year 2010 has, thus, recorded an improvement of exports by a rate of 17,9% compared to a regression by a rate of 17,6% in 2009. Simultaneously, following the revival of the economic activity, the imports recorded a growth by 20,3% compared to a regression by 14,4% in 2009. The evolution of imports with a rhythm more accelerated than exports’ one resulted in a trade deficit by 8.186,6 millions of Dinars compared to 6.410,2 millions of Dinars in 2009, so that coverage ratio has returned from 75,2% in 2009 to 73,7% in 2010. Evolution of the main indicators related to the commercial exchanges: 2009 2010 Evolution Asset Exports (%) -17,6 17,9 Evolution Asset Imports (%) -14,4 20,3 6 410,2 8 186,6 Evolution of Commercial Deficit (%) -2,9 27,7 Rate compared to GDP 10,9 12,9 Coverage Rate (%) 75,2 73,7 Commercial Deficit (MD) Employment The employment number created in 2010 has increased to 74,8 thousand positions compared to 68,3 thousand positions in 2009, thus satisfying 88,8% of the additional demand. These new creations of employment concerned mainly the manufacturing industry sectors as well as mechanic, electric and service ones. They also allowed the decrease of joblessness rate from 14,7% in 2009 to 13,2% in 2010. Annual Report 2010 15 Price The inflation rate has pegged at 4,4 % at end financial year 2010 versus 3,5 % at end financial year 2009. This growth is due to the price evolution of the following products: Evolution (%) 2009 2010 4,3 6,8 Sugar and derivatives 11,6 16,5 Fruits and dried fruits 2,7 10,7 Meat Products 6,8 9,1 -8,9 8,0 Fish Products 5,3 7,6 Restaurants and Hotels 5,9 6,3 Education 1,8 5,7 Transport 3 3,7 Clothing and Shoes 2,1 3,8 Accommodation and Domestic Energy 2,8 3,4 Food Products and drinks Salad Oil This increase is also due mainly to the increase of international prices of imported products namely food products and energy, to which is added the impact of fluctuations of exchange rates in particular the appreciation of Euro compared to Dinar. Monetary and financial balance The counterparts of the financial system funds were characterised, in 2010, by a noticeable acceleration of the economy accommodation (19,2% compared to 10,3%) and a decrease of net debts on the external (-5% compared to +17,8%) as well as on the Government (-2,5% compared to +16,5%). These evolutions had effect on the monetary mass (M3) which grew by 11% compared to 13% in 2009. In terms of monthly average, the progression rhythm of this aggregate, which is superior to that of GDP in current prices, remained almost unchanged since it had increased by 12,4% in 2010 compared to 12,5% one year back. Consequently, the economy cash rate has passed, from one year to another, from 62% to 64,6%. 16 The Government debts vis-à-vis the financial system (6.567 millions of Dinars in the end of 2010) decreased, during 2010, by 168 millions of dinars compared to a growth by 953 millions of Dinars in the last year, due to the combined effect of the decrease of the outstanding treasury bonds in the banks’ portfolio (a decrease by 111 millions of Dinars compared to a increase by 488 millions of dinars in 2009) and the increase of the Treasury current account (+209 millions of dinars Monetary market The growth of offers of banks exceeding rhythm faster than that of the demand of deficit banks was reflected in the contraction of cash needs on the monetary market, during the fourth quarter 2010. As for inter-banking compartment, transactions increased from 91 millions of dinars to settle at 752 millions of dinars, from which 86% representing term operations. As for the interest rate weighted daily on the monetary market, it fluctuated between 4,05 % and 4,99 % . As for the saving remuneration rate, it increased to 2,8% during December 2010, in relation to the growth of TTM. Exchange market Taking into account the exchange rate in 2010 as compared to 2009, the Tunisian Dinar has recorded a drop by 19.4% in relation with the Japanese Yen, by 8.4% in relation with the US Dollar, by 2,3 % in relation with the Moroccan Dirham and by 1,2 % in relation with the Euro. Transactions on cash exchange market have increased in 2010 by 39 %, passing from 55.044 Million Dinars compared to 39.497 Million Dinars one year back. The volume of operations against the Dinar has represented an amount of 19.794 Millions of Dinars in 2010 versus 15.775 Millions of Dinars in 2009, thereby recording an increase by 4.019 Millions of Dinars or 25, 5 %. The operations foreign currencies against foreign currencies have amounted to 35.250 Millions of Dinars in 2010 versus 23.722 Millions of Dinars in 2009, thereby recording a growth by 11.528 Millions of Dinars or 48, 6 %. From its side, the transactions on time exchange market have pegged at 6.615 Millions of Dinars in 2010 versus 4.469 Millions of Dinars in 2009, which means a growth by 2.146 Millions of Dinars or 48 %. The transaction share as for the import coverage in the realised volume between banks and companies settled at 74% compared 26% for those under export coverage. Stock Exchange The stock exchange capitalization has passed from 12.227 Millions of Dinars at end December 2009 to 15.282 Millions of Dinars at end December 2010, thereby recording a growth by 25 % and this despite the regression of the share of foreign investments in such capitalization between end 2009 and end 2010, from 21,92 % to 20,16 %. Likewise, the TUNINDEX index has passed from 4.291,72 as of end 2009 to 5.112,52 as of end 2010, which means an increase by 19 %. The number of listed companies in the Stock Exchange in 2010 has reached 56 companies, i.e. 4 more companies than in 2009. The liquidity rate has passed from 44% as of end December 2009 to 65% as of end December 2010. Annual Report 2010 17 STUSID BANK KEY-FIGURES Unit = 103 Dinars 2007 2008 2009 2010 Total Balance Sheet 233 089 299 451 386 239 521 348 Customer Deposits 34 091 75 747 151 584 252 251 119 203 192 532 268 531 379 072 7 693 9 930 11 234 14 764 663 1 491 2 904 4 940 14 091 17 173 20 401 26 505 5 571 7 214 8 626 10 711 Net Result 21 4051 10 807 11 472 9 727 STOCKHOLDERS EQUITY 165 694 172 520 180 011 185 760 12,9%2 6,3% 6,4% 5,2% Assets’ Return 9,2%3 3,6% 3,0% 1,9% Operating Coefficient 39,5% 42,0% 42,3% 40,4 % Commissions / Personnel Costs 16,8% 30,3 % 49,8% 70,2 % Solvency Ratio 84% 58% 47% 37% Liquidity Ratio 335% 146% 124% 134% Hung Debt Ratio 12,1% 9,6% 9,3% 10,6% 81,08% 65,9% 90,5% 72,9% 135 169 193 232 3 7 12 13 ACTIVITY Outstanding Bills on Customers RESULTS Intermediation Margin Commissions Banking Net Income Gross Operating Result RATIOS Stockholders’ Return REGULATORY RATIOS Coverage Ratio of Provision-Hung Debts STAFF AND NETWORK Staff Number of Branches This result will set at 8 767 KD off- exceptional and non-recurring operations This ratio will set at 5, 3% off- exceptional and non-recurring operations 3 This ratio will set at 3, 8% off- exceptional and non-recurring operations 1 2 18 02 STUSID BANK’S Activity 02 STUSID BANK’S Activity STUSID BANK interventions recorded during 2010, compared to 2009, a slight recession evaluated -on the level of activity approvals on medium and long term- amounting to -1,8% and a growth of commitments and net disbursements by respective rates: 2,6% and 18,1%, précising that these evolutions had settled clearly over the budget forecasts. The Short-term activity by paying out has been also improved, in terms of outstanding bills, passing to 48.307 Thousand Dinars or 52,5 % in 2010, versus 21.963 Thousand Dinars or 30,1% in 2009. I - FINANCIAL RESOURCES The outstanding bills of STUSID BANK’s financial resources reached 485, 4 Millions of Dinars as of 31st December 2010, thereby recording an increase by 34, 6%. Unit = Million of Dinars 31/12/2010 31/12/2009 185,8 180,0 1,2 2,8 46,1 26,3 Customer Deposits 252,3 151,6 TOTAL 485,4 360,7 Stockholders’ Equity Foreign Loans Other Loans 1- Stockholders’ Equity In addition to corporate capital amounting to 100 Millions of Dinars, the Bank’s reserves have passed from 80 Millions of Dinars as of 31/12/2009 to 85,8 Millions of Dinars as of 31/12/2010, thereby recording an increase by 5,8 Millions of Dinars or 7.3%. Such increase is mainly generated by the amounts appropriated to reserves with the sake of more consolidating the institution’s financial situation. 2 – Long Term Loans The outstanding bills of long term loans contracted by STUSID BANK has regressed, passing from 2,8 Millions of Dinars as of 31/12/2009 to 1,2 Million of Dinars as of 31/12/2010. Such regression (1, 6 Million of Dinars) results from the normal repayment of such foreign loans. 20 Loans 31/12/2010 31/12/2009 MD % MD % World Bank 0,5 41,7 2,2 78,6 AFD [French Development Agency] 0,2 16,6 0,3 10,7 Italian credit facility 0,5 41,7 0,3 10,7 Total 1,2 100,0 2,8 100,0 3 – Other loans The outstanding other long term loans signed by STUSID BANK at the monetary market passed from 26,3 millions of dinars on 31/12/2009 to 46,1 millions of dinars on 31/12/2010, with a growth by 19,8 millions of dinars or 75,3%. 4 - Customers Deposits Deposits of customers have amounted as of 31/12/2010 to 252,3 Millions of Dinars, of which 10,9 Millions of Dinars in foreign currencies – versus 151,6 Millions of Dinars as of 31/12/2009, of which 12,1 Millions of Dinars in foreign currencies, thereby recording an increase by 100,7 Millions of Dinars or 66,4 %. The achievement of such strong increase was rendered possible due to the multiplication of the number of branches and the proximity policy devised by the Bank. The major part of such increase is generated, in first level, by term deposits which have increased by 95, 3 %. . Unit = Million of Dinars Deposits 2010 2009 Sight Deposits 72,0 Term Deposits Variation MD % 60,1 11,9 19,8 151,7 77,7 74,0 95,3 Savings 25,3 11,3 14,0 122,9 Other Deposits 3,3 2,5 0,8 34,1 252,3 151,6 100,7 66,4 TOTAL Annual Report 2010 21 Evolution of Customer Deposits Structure of Deposits 252,3 1% 10% 29% 151,6 Deposit at sight 75,7 28,5 Other Deposits 60% 34,1 Term Deposits Saving 2006 2007 2008 2009 2010 II – BANK’S INTERVENTIONS 1 - Credits and Equity The Bank’s interventions, in terms of approvals, commitments and outward payment, in connection with medium and long-term credits all forms included except commitment by signature, have recorded during the year 2010 a tangible growth : Unit = Million of Dinars 2008 2009 2010 1981 / 2009 Approvals 94,2 124,2 122,0 955,3 Commitments 67,9 104,4 107,0 865,0 Outward Payments 64,1 83,7 98,9 813,6 The distribution by sector of such interventions presents as of end 2010 as follows: 31/12/2010 Approavals 22 Commitments Outward Payments MD % MD % MD % Agriculture and Fishing 2,0 1,7 1,4 1,4 1,4 1,4 Industry 18,1 15,1 9,8 9,2 15,7 15,9 Tourism 0,5 0,4 0,5 0,5 0,5 0,5 Estate 16,1 13,4 16,0 14,9 9,0 9,1 Services 15,5 12,9 16,3 15,2 10,3 10,4 Loans to Privates 69,8 58,2 63,0 58,8 62,0 62,7 TOTAL 122,0 100,0 107,0 100,0 98,9 100,0 From its side, the distribution by sector of such cumulative interventions presents as of end 2010 as follows: Approvals MD % Cumulative 1981 / 2010 Commitments Outward Payments MD % MD % 43,6 4,6 42,9 5,0 39,9 4,9 Industry 317,4 33,2 293,4 33,9 274,9 33,2 Tourism 186,7 19,5 180,0 20,8 178,3 21,9 Estate 123,4 12,9 98,0 11,3 87,4 10,7 Services 123,1 12,9 109,4 12,7 96,3 11,8 Loans to Privates 161,1 16,9 141,3 16,3 136,9 16,8 TOTAL 955,3 100,0 865,0 100,0 813,6 100,0 Agriculture and Fishing 2 - Outstanding Bills of Credits The net outstanding bills for credits to customers have recorded in 2010 a growth by 110.541 Thousand Dinars or 41,2 % passing from 268.531 Thousand Dinars in 2009 to 379.072 Thousand Dinars in 2010. The coverage rate of credits by the deposits thereby has set at 66,5 % in 2010 versus 54,5 % in 2009 . The share of credits granted to privates, individuals and professionals, which represents the main signal for Bank’s opening onto commercial activities (grant of estate credits and consumer credits, all kinds included) has recorded a tangible growth reaching 87,3 % to the extent that the outstanding bills to accrue of such credits has passed from 61.511 Thousand Dinars in 2009 to 115.217 Thousand Dinars in 2010. Net Credits to Customers Share of Credits to Privates 379,072 278,1 203,1 112,6 2006 70% 30% Loans to Privates 119,2 Companies 2007 2008 2009 2010 Annual Report 2010 23 The distribution of outstanding bills of credits to privates by nature of credit presents as follows: Unit = thousand dinars Credit nature 2010 2009 Housing 99 344 Car Purchase Variation MD % 49 387 49 951 101,2 3 188 2 289 899 39,3 Special Credits 6 679 5 384 1 295 24,1 Coverage of current expenditures 6 006 4 451 1 555 34,9 115 217 61 511 53 706 87,3 TOTAL In addition to outward payment based credits, the Bank’s customers have also access to commitments by signature in forms of endorsements and securities. The aggregate volume of such type of commitments amounted as of end 2010 to 65,4 Millions of Dinars (10,9 Millions of Dinars in form of opening of letters of credit and 54,4 Millions of Dinars in a number other forms) versus 32,6 Millions of Dinars as of end 2009. The distribution by term of net outstanding bills of credits, from its side, presents as follows: Credit Term 24 31/12/2010 31/12/2009 variations MD % MD % MD % Short term 145,4 38,4 94,9 35,3 50,5 53,2 Medium and Long terms 233,7 61,6 173,6 64,7 60,1 34,6 TOTAL 379,1 100,0 268,5 100,0 110,6 41,2 Likewise, the distribution of short term credits, by nature of credit, presents as of end 2010 as follows : Authorizations (mD) Intervention Type Outstanding Bills (mD) Variation Variation 2010 2009 mD % 2010 2009 mD % Withdrawal Credits 152 933 77 809 75 124 96,6 140 336 92 029 48 307 52,5 Stock Financing 10 160 7 830 2 330 29,8 7 110 6 280 830 13,2 Farm Credits 6 735 5 245 1 490 28,4 4 150 4 090 60 1,5 Commercial Discount 24 158 15 058 9 100 60,4 31 402 22 340 9 062 40,6 Credit Mobilization/ Abroad 3 975 2 304 1 671 72,5 1 500 1 770 -270 -15,2 Export Pre-Financing 4 720 3 547 1 173 33,1 3 769 3 287 482 14,7 Mobilization of Administrative Credits 21 442 8 223 13 219 160,8 5 442 2 822 2 620 92,8 Cash Facilities 26 096 16 458 9 638 58,6 51 911 29 624 22 287 75,2 Public Market Financing 8 325 4 457 3 868 86,8 2 258 875 1 383 158,0 Foreign Exchange Financing 18 796 5 000 13 796 275,9 17 609 11 278 6 331 56,1 Mobilizable Overdraft 21 832 9 601 12 231 127,4 12 033 8 355 3 678 44,0 Goods Financing 1 570 - 1 570 - 1 570 Credits to Privates 5 124 86 5 038 5 858,4 1 581 1 308 273 20,9 Commitments By Signature 53 301 45 407 7 894 17,4 65 354 32 568 32 786 100,7 Opening of Credits 8 703 10 911 11 888 -977 -8,2 Others 44 598 54 443 20 680 33 763 163,3 Total 206 234 205 690 124 597 81 093 65,1 123 216 83 018 67,4 1 570 Annual Report 2010 25 3 - Classification of Commitments: The rate of hung credits has slightly deteriorated by the end of 2010 passing from 9,3% in 2009 to 10,6 % in 2010 : Thousand Dinars Credits Classification Shareholdings Amount1 Agios Reserved Provisions2 Amount Agios Reserved Provisions Currents Assets 413.979 1.673 400 48.444 0 1.663 Classed Assets 51.434 5.626 18.373 3.294 209 3.054 class 2 7.100 150 1.782 2.085 0 2.054 class 3 9.297 414 841 209 209 0 class 4 15.277 2.561 4.104 1.000 0 1.000 class 5 19.759 2.500 11.646 0 0 0 Overall Total 465.413 7.300 18.773 51.738 209 4.717 1 taking into account off-balance sheet commitments 2 taking into account the provisions for general banking risks. Coverage rate of Assets by provisions and agios reserved and Assets’ Ratios classified on 31/12/2010 2010 2009 72,90% 90,54% Loans’ Coverage Rate 71,23% 89,67% Equity’s Coverage Rate 99,06% 99,07% 10,58% 9,33% Ratio of suspended credits 11,05% 9,77% Ratio of suspended equities 6,37% 6,44% Coverage rate of credits suspended by Provisions and Agios reserved Ratio of Classified Assets 26 4 – Securities Portfolio The portfolio of STUSID BANK’s shareholdings (committed) has recorded in 2010 an increase by 0.5 Million of Dinars as compared to 2009, thereby passing to 51.7 Millions of Dinars as of end 2010, versus 51,2 Millions of Dinars as of end 2009. Such increase is due to the bank’s shareholding in the capital of the “SODINO” company, and Fonds Commun de Placement à Risque « INTECH». The breakdown by sector of the securities portfolio has developed as follows: In Million of Dinars 31/12/2009 31/12/2010 Sectors Amount % Amount % Industry 26,1 50,4 26,1 51,0 Tourism 1,8 3,5 1,8 3,5 Estate 9,6 18,6 9,6 18,8 Services 14,2 27,5 13,7 26,7 Total 51,7 100,0 51,2 100,0 Annual Report 2010 27 STUSID BANK’s net shareholdings portfolio, from its part, has set at 46,291 Millions of Dinars as of 31st December 2010 versus 45,893 Millions of Dinars as of 31st December 2009. Variations of Securities Portfolio during the year 2010 ( in MD) Gross Shareholdings as of 31/12/2009 51,169 New Subscriptions 0,801 INTECH 0,500 SODINO 0,300 SIBTEL 0,001 Decrease in Capital 0,231 Shareholding’s selling 0,231 Gross total as of 31/12/2010 51,738 Provisions as of 31/12/2010 -4,926 Non Paid-Up Shareholdings -0,522 SODINO - 0,150 Other companies - 0,372 46,291 Total Net Shareholdings as of 31/12/2010 Moreover, STUSID BANK holds a direct interest exceeding 30% of the corporate capital of the four following companies Company 28 Corporate Capital (TND ) Shareholding Rate SITEX 23 063 300 30,8 % SASEJ 5 000 000 52,5 % SMT 2 500 000 52,6 % TST 500 000 39,9 % 03 STUSID BANK’S Results 03 STUSID BANK’S Results Activity Indicators 1 – Net Banking Income The Net Banking Income has set as of 31st December 2010 to 26,505 Millions of Dinars, thereby showing an increase by 6,104 Millions of Dinars or 29,9 % as compared to the preceding year Variation 2010 2009 Banking Operating Incomes 35.007 25.270 9.737 38,5 Interests and Allied Revenues 23.121 15.685 7.436 47,4 145 418 -273 -65,3 Commissions 4.940 2.904 2.036 70,1 Gains on Commercial and Financial Operations Portfolio 2.234 1.886 348 18,5 Investment Portfolio Revenue 4.567 4.377 190 4,3 Banking Operating Costs (8.502) (4.869) (3.633) 74,6 Net Banking Income 26.505 20.401 6.104 29,9 Placement Incomes Montant % Various elements of Net Banking Income have, moreover, developed as follows: - the margin on interests has recorded a growth by 31,4 % bringing its share in the formation of Net Banking Income to 55,7%, i.e. a growth by about half a point as compared to the share recorded in 2009 (55,1 %). 30 Evolution of Net Banking Income Evolution of Interests Margin 14,8 26,5 11,2 20,4 9,9 17,2 11,9 14,1 2006 2007 7,7 7,8 2008 2009 2010 2006 2007 2008 2009 2010 - Commissions have recorded a growth by 70,1 % bringing their share in the formation of Net Banking Income to 18,6 % versus 14,2 % in the preceding year. - Non Banking Income generated by the financial operations and securities portfolio have established at 6,801 Millions of Dinars. Their share in the formation of the Net Banking Income has then reached 25,7 %, i.e. a drop by 4,9 points as compared to 2009. Evolution of commissions Structure of Banking Income 4940 24% Margins on interests 2904 55% 17% 1491 405 2006 Margins on commission 663 2007 Non banking products 2008 2009 2010 Annual Report 2010 31 2 – Overheads Personnel costs and operations expenses have grown by 2.085 Thousand Dinars, passing from 8.626 Thousand Dinars in 2009 to 10.711 Thousand Dinars in 2010. Unit = thousand of dinars 31/12/2010 31/12/2009 Variation Operating Overheads 3 669 2 797 872 Personnel Costs 7 042 5 829 1 213 10 711 8 626 2 085 Total The coverage rate of personnel costs by commissions according has set at 70,2 % as of end 2010 versus 49,8 % as of end 2009. Following such increase recorded by the overheads costs, the Operating Coefficient returned to 40,4 % in 2010 versus 42,3 % in 2009, thereby a 2 points improvement. Evolution of General Costs Evolution of Operating Coefficient 10711 42,3 8626 42 7214 4792 40,3 5571 40,4 39,5 2006 2007 2008 2009 2010 2006 2007 2008 2009 2010 3 – Gross Operating Product In the light of the evolutions recorded by the net banking income and overheads, gross operating result, being taken before provisions and other resumptions, amounted to 15.794 thousand Dinars as of end 2010 versus 11.775 thousand Dinars as of end 2009, thereby recording an increase by 4.019 thousand Dinars or 34,1 %. 32 Evolution of Gross Operating Result 15,794 2010 11,775 2009 9,959 2008 8,520 2007 7,106 2006 4 – Net Result The result reached 9.727 thousand Dinars in 2010 versus 11.472 thousand Dinars in 2009, thereby recording a decrease by 1.745 thousand Dinars or 15.2%, precising that, on the Board of Directors decision, an additional 2.000 thousand Dinars provision has been constituted to be devoted to face potential risks resulted from the exceptional situation prevailing in the country since the end of 2010. 9727 2010 Evolution of net result 11472 2009 10807 2008 8767 2007 7740 2006 STOCKHOLDERS’ EQUITY AND DISTRIBUTION OF PROFITS Stockholders’ Equity (Before Distribution) Of which Accounting Result Profits Distributed 2010 2009 2008 2007 185 760 180 011 172 520 165 694 9 727 3 000 11 472 4 000 10 807 4 000 21 405 4 000 Annual Report 2010 33 EVOLUTION OF STUSID BANK’S RESULTS OVER THE PAST FIVE YEARS Variation (%) 2010/2009 2006 2007 2008 2009 2010 Banking Operating Income 13 016 15 622 19 491 25 270 35 007 38,5 % Net Banking Income 11 898 14 091 17 173 20 401 26 505 30,0 % Operating Result 7 740 19 768 * 10 747 11 456 8 760 -23,5 % Net Result 7 740 21 405 * 10 807 11 472 9 727 -15,2 % * compte non tenu des opérations exceptionnelles et non récurrentes, le résultat s’établit à 8 767 mille Dinars. Et, le résultat d’exploitation s’établit à 7 130 mille Dinars. RISK MANAGEMENT AND PRUDENTIAL RATIOS At the end of the calendar year 2010, the aggregate of prudential ratios have been satisfactory: 31/12/2010 Minimum Regulatory Liquidity Ratio 134 % 100 % Solvency Ratio 37 % 8% Risk Division Ratio *Customers with risks higher or equal, for each of them, to 5% of net stockholders’ equity 34 c 4 customers *Customers with risks higher or equal, for each of them to 15% of net stockholders’ equity Nil *Customers or groups with risks exceeding the 25% regulatory limit of net stockholders’ equity Nil 04 1 – Development of Monetics Diversification of STUSID BANK Business 04 Diversification of STUSID BANK Business 1 – Development of Monetics The number of bank cards issued as of end 2010 has reached 6.731 cards, which means 3.475 additional cards as compared to end 2009. The number of card-based transactions has doubled in 2010 as compared to 2009, thereby passing from 52.106 operations to 119.557 operations. The number of installed automatic dispenser has reached 13 dispensers as of end 2010 versus 12 dispensers in 2009, which have been used for carrying out 131 thousand operations in 2010 versus 79 thousand operations in 2009. Likewise, STUSID BANK has gone off into installation of electronic payment terminals (E.P.T), thereby proceeding to the installation of 123 units more in 2010, reaching whereby a total n umer o f E.P.T s’ amount in g t o 187 unities as per the end of 2010. Moreover, STUSID BANK is continuing to place such activity in first level of its concerns for the coming years, in a manner to more improve the services provided to customers and to increasingly secure the operations being processed. 36 2 - Development of Operations on International Scale: The number of files processed relating to operations on international scale, all forms included, has passed from 1.668 files in 2010 to 2.692 files in 2010. Thus, the aggregate volume of abroad operations has passed from 103,6 Millions of Dinars in 2009 to 169,2 Millions of Dinars in 2010, which means an increase by 63,3 %. 3 - Development of Cash Operations: The volume of cash flow operations, whether the matter refers to operations of exchange or inter-bank operations in foreign currencies or in Dinars, has sensitively grown at end 2010 as compared to end 2009, thereby making such activity a centre of profit which is actively participating in the formation of the bank’s Net Banking Income. The global volume of treasury operations passed from 26 Millions of Dinars in 2009 to 56 Millions of Dinars in 2010, whereby a growth by 115%. The outstanding Assimilable Treasury Bonds purchased by STUSID BANK for its own account has decreased by 11,8% in 2010 following the reimbursement of the line ending at mars 2010. It returned from 20.880 Millions of dinars in 2009 to 18.414 Millions of dinars in 2010. The average outstanding bills of debits on customers expressed in foreign currencies has recorded in 2010 a growth at the rate of 56 % as compared to 2009, shifting from 17,6 Millions of Dinars in 2010 compared to 11,3 Millions of Dinars in 2009. The net profit on exchange operations reached 307 Thousand Dinars in 2010 compared to 353 Thousand Dinars in 2009, with a regression of 13% following the decline of operations related to the external trade. It is, moreover, expected for the coming years that the cash flow operations processed by the Bank will be increasingly intensified following the objective set in the matter and the putting in the place by STUSID BANK of one of most modern “Market Hall» which is liable to increase its competitive capabilities in cash flow segment. 4 - Operating STUSID BANK continued its work of reinforcement of its presence on the banking market in spite of the tough competition by the other commercial banks. In this framework, the bank started the review of the organisation of its retail outlets in order to improve their performances, allowing it to increase the volume of deposits by 66% and that of credits by 42% compared to the last year. The equipment rate in monetics has improved reaching a level of 41%. An important growth has been recorded as for the accounts’ opening. Moreover, the bank gave a particular attention to the company and professional segment by reinforcing the investment of exploitation and production cycles -supported by a program of visits to the leading companies and being successful in attracting a significant number of them. In addition to the motivation of its commercial agents, STUSID BANK launched in 2010 two commercial challenges, the first deals with MasterCard Nationale and the other deals with EPTs reaching very encouraging results. The year 2010 was marked by a densification of marketing activity. In order to better present its activities, STUSID BANK participated in the auto show “AUTOGAB 2010” in Gabes and in the “Company Creation Show 2010”. It also launched, in the same perspective, a large publicity campaign in the occasion of Ariana agency opening. It has also sponsored the two forums orgonised by the magazines « l’Economiste » and « l’Expert ». Annual Report 2010 37 5- Opening of Branches In 2010, STUSID BANK has opened a new agency in Ariana, thereby bringing the branch network to 13 branches. 6 - Staffing and Training: STUSID BANK’s staffing has passed from 232 individuals as of 31/12/2010 versus 193 individuals as of 31/12/2009. Staff 2010 2009 Difference Higher Executive Staff 40 38 1 Executive Staff 100 91 16 Control Staff 29 13 2 Enforcement Staff 54 28 5 Service Staff 9 23 0 232 193 24 TOTAL The supervision rate is thereby pegging at 60,3 %. The training actions, with 101 business-to-business actions and 17 intra-company actions, have involved 114 employees. 7 - Business Forecasts The bank elaborated, for the period called “post-start-up” in the trade activity covering the years 2011 to 2014, a new business plan aiming at valuing and reinforcing the gains of the “start-up” period. 38 The new strategic plan highlights the important following points : •• Reach, in 2014, a rate of returns on equities amounting to at least 10% and return on assets amounting to at least 2%. •• Develop the bank activity in the matter of credits by mixing the “corporate” activity and “retail” activity at the following respective proportions in 2014 : 75% (with emphasis on RPA and short term loans) and 25% (with emphasis on accommodation loans), •• Target a risk cost by 1,25% maximum, •• Watch over the funds liquidation at a reasonable cost focusing on the customers’ deposits by targeting, in 2014, the following structure: 40% for deposits at sight, 40% for term deposits and 20% for saving deposits, •• Intensify earnings on commissions which have to represent, in 2014, 25% of the net banking income (off earnings of investment portfolio), •• Improve the bank performances namely in the matter of rationalisation of expenses in order to target an operating coefficient of 40% in 2014 In order to achieve its strategic objectives, STUSID BANK identified the organizational, material and human resources necessary to achieve its aim comprising mainly: 1-Extension of the network by opening 5 additional agencies per year during the period of the plan, whereby raising the number of agencies from 13 in 2010 to 33 in 2014. 2- Implement a modern Global Banking, integrated and immediately fully functional and which operated in the Tunisian banks as well as completing it regressively, if need be, with other additional applications: SBE, telecommunication, human resources management, assets management, etc, 3- Improve the performances of the bank, namely in the matter of consultancy related to the fields of Financing, financial engineering, investment and company start-up assistance. Annual Report 2010 39 4-Development of operations internationally and widen the network of correspondents 5-Modernize the bank and launch of new products which meet the different market segment needs and take into account the specificity of each one of the country region, 6-Improve the services offered to customers and reinforce the control structure, 7- Continue to give importance to the development of modern payment methods and customers’ equipment according to the category to which they pertain, 8- Intensify the training cycles and employees’ retraining in order to improve productivity of the Personnel, 9- Better vulgarization of the bank activities to the public through well targeted publicity campaigns. 40 05 Financial Situation As of end December 2010 and 2009 05 Financial Situation As of end December 2010 and 2009 BALANCE SHEETS Comparative as of end December 2010 and 2009 (In Thousands of Tunisian Dinars) ASSETS Variation 2010/2009 Dec 2010 Dec 2009 29 910 12 677 17 233 135,9 2 522 4 828 - 2 306 - 47,8 Credits on Customers 379 072 268 532 110 540 41,2 Commercial Portfolio 22 021 21 608 413 1,9 Investment Portfolio 46 291 45 893 398 0,9 6 760 6 450 310 4,8 Other Assets 34 772 26 251 8 521 32,5 Total Assets 521 348 386 239 135 109 35,0 Cash and Holdings at Central Bank of Tunisia and CCP Credits on Banking Institutions Locked-up Securities Amount % LIABILITIES Central Bank of Tunisia and CCP 10 005 Deposits and Holdings of Banking and financial Institutions 46 046 26 208 19 838 75,7 252 251 151 584 100 667 66,4 1 175 2 818 - 1 643 - 58,3 26 111 25 618 493 1,9 335 588 206 228 129 360 62,7 100 000 100 000 - - 75 910 68 303 7 607 11,1 123 236 - 113 - 47,9 9 727 11 472 -1 745 - 15,2 TOTAL STOCKHOLDERS’ EQUITY 185 760 180 011 5 749 3,2 Total Liabilities and Stockholders’ Equity 521 348 386 239 135 109 35,0 Customers Deposits Loans and Special Resources Other Liabilities Total Liabilities 10 005 STOCKHOLDERS’ EQUITY Corporate Capital Reserves Results Carried Forward Financial year’s result 42 PRUDENTIAL STANDARDS Regulatory Ratios % % required Dec 2010 Dec 2009 Risk Coverage Ratio Minimum 8% 37 % 47 % Liquidity Ratio Minimum 100% 134 % 124 % OFF-BALANCE SHEETS COMMITMENTS Comparative as of end December 2010 and 2009 (In Thousands of Tunisian Dinars) 2010 2009 TOTAL POTENTIAL LIABILITIES 65 354 32 568 Securities, Endorsements and Other Warranties Granted 47 345 16 071 Documentary Credits 10 911 11 888 Assets Granted with Warranty 7 098 4 609 TOTAL COMMITMENTS GRANTED 3 940 6 058 Financing Commitments Granted 3 418 5 811 522 247 TOTAL COMMITMENTS ACCEPTED 95 824 66 758 Warranties Granted 11 000 0 Warranties Accepted 84 824 66 758 Commitments on Securities Annual Report 2010 43 INCOME STATEMENTS Comparative as of end December 2010 and 2009 ( In thousands of Tunisian Dinars ) 2010 2009 Banking Operating Incomes Interests and Allied Revenues 23 266 16 103 Commissions 4 940 2 904 Earnings on Commercial Portfolio and Financial Operations 2 234 1 886 Revenue of Investment Portfolio 4 567 4 377 35 007 25 270 Interests Incurred and Allied Costs (8 502) (4 869) Total Banking Operating Costs (8 502) (4 869) NET BANKING INCOME 26 505 20 401 General Operating Costs (3 669) (2 797) Personnel Costs (7 042) (5 829) Appropriation to Provisions and Results of Corrections on Credits (6 357) 408 114 (24) (886) (824) 95 121 OPERATING RESULT 8 760 11 456 Balances in Earnings/Losses Generated by Other Ordinary Elements 1 003 42 (36) (26) 9 727 11 472 Total Banking Operating Incomes Banking Operating Costs Appropriation to Provisions and Results of Corrections on Investment Portfolio Appropriations to Amortizations and Resorptions Other Operating Incomes Corporate Tax FINANCIAL YEAR’S NET RESULT 44 This Table allows taking out the following ratios: en % 2010 2009 General Operating Costs/Net Banking Income 13,8 13,7 Personnel Costs/Net Banking Income 26,6 28,6 Operating Coefficient 40,4 42,3 Commissions/Personnel Costs 70,2 49,8 General Operating Incomes/Banking Operating Incomes 10,5 11,1 Personnel Costs/Banking Operating Incomes 20,1 23,1 Total Provisions/Operating Incomes 26,5 26,3 Net Results/Operating Incomes 27,8 45,4 Net Results/Stockholders’ Equity 5,2 6,4 Revenue of Investment Portfolio/Shareholdings Portfolio 8,8 8,6 Annual Report 2010 45 CASH FLOW STATEMENTS Comparative as of end December 2010 and 2009 ( In thousands of Tunisian Dinars) 2010 2009 30 440 20 893 - 11 786 - 7 723 34 677 - 12 347 Loans and Advances/Repayment of Loans and Advances Granted to Customers - 105 801 - 77 456 OPERATING ACTIVITIES Banking Operating Incomes Collected Banking Operating Incomes Paid out Deposits/Withdrawals of Other Banking and Financial Institutions Deposits/Withdrawals of Customers Deposits 100 667 75 837 - 413 1 338 - 7 042 - 5 829 - 18 017 6 558 - 36 - 26 22 689 1 245 Interests and Dividends Collected on Investment Portfolio 4 568 4 378 Acquisitions/Assignments on Investment Portfolio - 258 - 2 539 - 1 180 - 1 859 3 130 - 20 Increase/Decrease in Special Resources - 1 644 - 652 Dividends Paid - 4 000 - 4 000 NET CASH FLOW GENERATED BY FINANCING ACTIVITIES -5 644 - 4 652 NET VARIATION OF LIQUIDITY AND LIQUIDITY EQUIVALENTS DURING FINANCIAL YEAR 20 175 - 3 427 LIQUIDITY AND LIQUIDITY EQUIVALENTS IN BEGINNING OF FINANCIAL YEAR 1 315 4 742 LIQUIDITY AND LIQUIDITY EQUIVALENTS AS OF END FINANCIAL YEAR 21 490 1 315 Placement Bonds Sums Paid to Personnel and Miscellaneous Creditors Other Cash Flow Generated by Operating Activities Taxes on Profits NET CASH FLOW GENERATED BY OPERATING ACTIVITIES INVESTMENT ACTIVITIES Acquisitions/Assignments on Fixed Assets NET CASH FLOW GENERATED BY INVESTMENT ACTIVITIES FINANCING ACTIVITIES 46 Auditors’ general report financial year ended 31 st december 2010 and taking into consideration the prudential standards as well as the terms of reference for audit of accounts, as defined by the circulars of CENTRAL BANK OF TUNISIA. Honourable Shareholders: In enforcement of the assignment entrusted to us by your esteemed Ordinary General Assembly, we submit you our report on control of financial statements of STUSID BANK as of 31st December 2010, as attached hereto, as well as the verifications and specific information provided for by law and by professional standards I- OPINION ON FINANCIAL STATEMENTS: We have audited the financial statements of STUSID BANK which show total assets net of amortizations & provisions amounting to 521 348 KTND and profit result amounting to 9 727 KTND as of 31st December 2010. Such financial statements have been made under the responsibility of the management and administration bodies of the company in accordance with the professional standards applicable in Tunisia. Such responsibility includes design, putting in place and follow-up of an internal control relating to the preparation and the faithful presentation of financial statements not containing such significant abnormalities, whether resulting from frauds or from errors, as well as the determination of reasonable accounting estimates in view of the circumstances. Our responsibility consists in expressing an opinion on such financial statements based on our audit performed in accordance with the professional standards applicable in Tunisia Such standards require from our part to comply with the rules of ethics and to plan and carry out the audit process in order to obtain a reasonable assurance that the financial statements of STUSID BANK as of 31st December 2010, do not contain any significant abnormalities. An audit involves the implementation of such procedures in order to collect probant elements concerning the amounts and the information provided in the financial statements. The choosing of procedures falls under our judgment and so does the assessment of the risk that the financial statements contain such significant abnormalities, whether resulting from frauds or from errors. By proceeding to such risk assessments, we take into account the current internal control within the Bank relating to the preparation and the faithful presentation of financial statements in order to define such appropriate audit procedures in the circumstance, and not with the aim of expressing an opinion on the efficiency of such internal control. An audit also includes the appraisal of the appropriate character of accounting methods maintained and the reasonable character of the accounting estimates made by the management and administration bodies, as well as the appraisal of the thorough presentation of financial statements. Annual Report 2010 47 We maintain the actions accomplished within this framework make a reasonable basis for grounding our opinion. In our opinion, the financial statements attached hereto are regular and faithfully reflect, in all significant aspects, the financial situation of STUSID BANK as of 31st December 2010, as well as the results of its operations and of its cash-flow for the financial year closed on such date, in accordance with the accounting principles generally accepted in Tunisia. I- SPECIFIC VERIFICATIONS AND INFORMATIONS We have also proceeded, in accordance with the trade’s standards, to the specific verifications provided for by law. On the basis of such verifications, we have no comments to formulate on the faithfulness and the concordance with the financial statements of the accounting-related information provided in the Board of Director’s management report for the relevant financial year. We have also, within the framework of our audit, proceeded to the examination of internal control procedures relating to the processing of accounting information and to the preparation of financial statements. We report, according to the requirement of Article 3 of Law no 94-117 dated 14th November 1994 as amended by Law no 2005-96 dated 18th October 2005, that our examination has revealed such insufficiencies impacting the reliability of certain accounts of items “Other Assets” and “Other Liabilities” of which in particular the inter-head office, stand-by and outstanding accounts. The effect of such insufficiencies is not of significance which justifies that they should be mentioned on the level of our opinion on the accounts as expressed above. Moreover, and pursuant to the provisions of Article 19 of the Presidential Decree n° 2001-2728 dated 20th November 2001, we have proceeded to the necessary verifications and we have no comments on the compliance of the keeping of accounts in securities issued by the Bank with the current regulations. It is to be noted that the Bank has signed the Terms and Conditions Book provided for by the Minister of Finance’s Order dated 28th August 2006 and submitted it to the Financial Market Commission on 20th May 2008. Made at Tunis on the 2nd of June 2011 THE AUDITORS Mourad GUELLATY Cabinet Mourad Guellaty 48 Kalthoum BOUGUERRA F.M.B.Z. KPMG TUNISIA AUDITOR’S SPECIAL REPORT ON REGULATORY AGREEMENTS (ARTICLES 200 & 475 OF COMMERCIAL COMPANIES ACT AND ARTICLES 29 OF LAW No.2001-65) FINANCIAL YEAR ENDED 31ST DECEMBER 2010 Honourable Shareholders Pursuant to the provisions of Articles 200 and 475 of Commercial Companies Act and those of Article 29 of Law no 2001-65 as amended by subsequent texts, we have the pleasure to inform you that the Managing Directors has communicated to us the performance of the agreements and operations contemplated by the above mentioned articles which we will report hereunder. Our responsibility is to ascertain the compliance with the legal procedures for authorization and approval of such agreements or operations. It does not fall to us accordingly to search the possible existence of such agreements or operations but to communicate you, on the basis of the information which has been given to us, their substantial characteristics and terms, without being under the obligation of expressing our opinion on their usefulness and their cogency. It falls to you to appraise the interest connected with the conclusion of such agreements and the performance of such operations for approval thereof. 1- AGREEMENTS CONCLUDED DURING THE FINANCIAL YEAR 2010 : 1.1- LEASE CONTRACT WITH COMPANY “ TSPP” By virtue of a contract concluded on 31st December 2009, STUSID BANK has put at disposal of “Société Tuniso-Saoudienne de Participation et de Placement TSPP” [Tunisian- Saudi Shareholding and Placement Company] two offices located at the 6th floor of the registered office premises, at 32 Rue Hédi Karray, in consideration of an annual rent of TND 7.300 payable each half year. Such contract taking effect as from 1st January 2010 is concluded for a one year duration automatically removable with an increase by 5% per annum. 1.2- AGREEMENTS CONCLUDED WITH T.S.I RELATING TO THE COMMON PLACEMENT FUND «KOUNOUZ» In 2008, STUSID BANK has concluded the following two agreements with the company “TunisoSaoudienne d’Intermédiation (TSI)” [Tunisian – Saudi Intermediation Company] being the manager of KOUNOUZ: • A trustee agreement by virtue of which STUSID BANK ensures the deposit of bonds and funds for the account of KOUNOUZ Common Placement Fund. In return, STUSID BANK receives a remuneration equal to 0.25% inclusive of tax, of net assets of the Common Placement Fund, discounted on a day-to-day basis. • A distributorship agreement by virtue of which STUSID BANK ensures the marketing of KOUNOUZ Common Placement Fund’s shares in its banking network. The remuneration received by STUSID BANK for such function is discounted on a day-to-day basis, being equal to the Bank’s quota in the distributorship’s commission paid by KOUNOUZ Common Placement Fund to TSI. Such quota determined on the basis of 0.35% of KOUNOUZ Common Placement Fund’s net Rapport annuel 2010 49 assets multiplied by the quotient of outstanding bills of in-put subscriptions by STUSID BANK (net of redemptions), by the total outstanding bills of input subscriptions (net of redemptions). 1.3- AGREEMENTS CONCLUDED WITH AL HIFADH- SICAV : STUSID BANK has also concluded two agreements with AL HIFADH SICAV relating to: • A trustee agreement, by virtue of which STUSID BANK ensures the deposit of bonds and funds invested by said SICAV. In return, it receives a remuneration equal to 0.15% inclusive of tax of SICAV’s net assets, discounted on a day-to-day basis. • A distributorship agreement by virtue of which STUSID BANK ensures the marketing of AL HIFADH SICAV within its banking network. The remuneration received by STUSID BANK for such function is discounted on day-to-day basis, being determined on the basis of 0.25 % of AL HIFAD-SICAV’s net assets multiplied by the quotient of outstanding bulls of input subscriptions brought by STUSID BANK (net of redemptions), by the total outstanding bills of subscriptions ( net of redemptions). 1.4- LEASE CONTRACT WITH “TSI” COMPANY By virtue of a contract concluded on 31st January 2007, STUSID BANK has put at the disposal of the Company Tuniso-Saoudienne d’Intermédiation “TSI” [Tunisian-Saudi Intermediation Company] a set of offices located at 4th floor of registered office premises at 32 Rue Hédi Karray, in consideration of an annual rent of TND 35 765 payable each half- year. Such contract taking effect as from 1st January 2007 is concluded for a one-year duration automatically renewable with an increase by 5% per annum. 1.5- LEASE CONTRACT WITH “TSR” COMPANY STUSID BANK has put at the disposal of “Société Tuniso-Saoudienne de Recouvrement “TSR” [TunisianSaudi Recovery Company]” a set of offices located at 3rd floor of STUSID’s registered office premises at 32 Rue Hédi Karray, in consideration of an annual rent of TND 11 573 payable each half -year. Such contract taking effect as from 1st January 2003 is concluded for a one-year duration automatically renewable with an increase by 5% per annum. 2. BANK’S OBLIGATIONS AND COMMITMENTS TOWARD THE EXECUTIVE OFFICERS 2.1. The gross monthly remuneration of the Managing Director is set by the Prime Ministry’s orders dated 23/09/2010. The Managing Director benefits from a service car and from the Bank’s takeover of all costs related thereto. The directors’ members of audit committee and of credit executive committee receive a remuneration for their attendance to the meetings of the said committees, being TND 2 063 per person and per meeting. 2.2. Bank’s obligations toward its executive officers as they appear in the financial statements of financial year ended 31st December 2010, present as follows in Tunisian Dinars (TND): • Your Managing Director, appointed on 24th of Mars 2010, obtained during 2010 a remuneration detailed as follows: 50 Managing Director 2 Short-term benefits Financial year’s costs Liabilities as of 31/12/2010 52 310 - 52 310 - Post-employment benefits Other Long-term benefits End of service gratuity Payment in shares TOTAL • Your Managing Director retiring, being in position until 24th of Mars 2010, obtained during 2010 a remuneration detailed as follows: Managing Director 1 Short-term benefits Financial year’s costs Liabilities as of 31/12/2010 18 002 - 18 002 - Post-employment benefits Other Long-term benefits End of service gratuity Payment in shares TOTAL Annual Report 2010 51 • The directors’ members of audit committee and of credit executive committee receive a remuneration for their attendance to the meetings of the said committees is detailed as follows: directors’ members of audit committee and of credit executive committee Financial year’s costs Liabilities as of 31/12/2010 61 875 - 61 875 - Short-term benefits Post-employment benefits Other Long-term benefits End of service gratuity Payment in shares TOTAL - An annual net budget as directors’ fees amounting to 82 500 dinars. Moreover and apart from the above mentioned agreements and operations, we have received no notice from your esteemed Board of Directors relating to other operations governed by the provisions of the said articles and our actions did not reveal the existence of such operations. Made at Tunis on the 14th of June 2011 THE AUDITORS Mourad GUELLATY Cabinet Mourad Guellaty 52 Kalthoum BOUGUERRA F.M.B.Z. KPMG TUNISIA 06 Consolidated Financial Information of STUSID BANK Group 06 Consolidated Financial Information of STUSID BANK Group The consolidated financial information of STUSID BANK Group have been established in accordance with the current laws, corporate accounting system and with Tunisian accounting standards relating to banking institution operations, as well as with corporate financial consolidation. Pursuant to the provisions of Law no 117-2001 dated 6th December 2001, and to Tunisian according standards, corporations eligible to consolidation, being STUSID BANK’s subsidies are listed in the following table: 54 Company Secteur Nature Control Percentage Interest Percentage Consolidation Method STUSID BANK Financial Parent Company 100,00 % 100,00 % Total integration Tuniso-Séoudienne de Recouvrement (TSR) Financial Subsidiary 99,98 % 99,98 % Total integration Tuniso-Séoudienne de Participation et de Placement TSPP (SICAR) Financial Subsidiary 99,96 % 99,96 % Total integration Tuniso-Séoudienne de Participations et d’Investissement (TSPI) Financial Subsidiary 99,99 % 99,99 % Total integration Société de développement et d’aménagement touristique de Tabarka Estate Subsidiary 52,55 % 52,55 % Total integration Société d’Aménagement « Sfax Al Jadida » Estate Total Integration 52,50 % Subsidiary Services Subsidiary AL HIFADH SICAF Financial Subsidiary 100,00 % 100,00 % Total Integration F C P “KOUNOUZ” Financial Subsidiary 100,00 % 100,00 % Total Integration Tuniso-Séoudienne d’intermédiation(TSI) Financial Subsidiary 30,00 % 30,00 % Total integration Estate JointVenture 23,27 % 23,27 % Equivalence Matching Société Industrielle de Textiles (SITEX ) Industry JointVenture 30,78 % 30,78 % Equivalence Matching Tuniso-Séoudienne de Trading (TST) Commercial JointVenture 39,90 % 39,90 % Equivalence Matching Service JointVenture 25,00 % 25,00 % Equivalence Matching Soc.« Al Marja » d’élevage et de dév.agricole Agricultural JointVenture 28,57% 28,57% Equivalence Matching Floralia Agricultural JointVenture 49,57 % 49,57 % Equivalence Matching TANKMED Service JointVenture 20,00 % 20,00 % Equivalence Matching Société « Al-Kanaouet » Industry JointVenture 28,56 % 28,56 % Equivalence Matching Société d’Etudes et de Suivi 1 Société Immobilière TunisoSéoudienne (SITS) Société d’Investissement du CapBon (SICAB) 52,50 % Total Integration Estate Immobilière « Al Jadida » 1 Total Integration 1. Such corporations have been consolidated by total integration into « Sfax Al Jadida » company. Annual Report 2010 55 The companies with control percentage exceed 20% and which have not been integrated into corporate group are the following: Company 56 Control Percentage SMVDA « SIDI SAAD » 39,13 % Soc .Tuniso-Européenne de production d’ asperges 51,02 % Société agricole « RAHMANIA» 33,30 % Société agricole « AZIZIA » 40,00 % SMVDA « SIDI MANSOUR » 42,25 % Société Tuniso- Américaine de transf. de dattes « TADCO » 41,00 % Société Pépinières de Tunisie (SPT) 49,97 % SMVDA Mlaabi 50,00 % Société de confection « SOMATEC » 33,33 % Pêcheries de Jerba 57,80 % Société « SOTUCOUPE » 25,71 % Société « SODAV » 20,14 % Société « FOODLAND » 25,00 % SMVDA LEZDINE 20,00 % Société « LA MOQUETTE » 20,00 % Société l’outillage 20,00 % Société « CARPETEX » 20,00 % Société « SIDPA » 20,00 % SMVDA El-Majel 23,59 % CANAL HORIZONS 27,24 % HOTEL NEPTUNIA 22,86 % CONSOLIDATED BALANCE SHEETS As of 31st December (In Thousands of Tunisian Dinars) ASSETS Dec 10 Dec 09 Cash and Holdings at Central Bank of Tunisia and CCP 29 912 12 678 3 047 5 382 Credits on Customers 377 090 274 302 Commercial Portfolio 50 729 43 219 Investment Portfolio 37 435 33 159 Equivalence Matched Securities 34 760 32 934 6 918 6 558 Others Assets 64 186 42 834 Taxes Deferred 11 071 14 046 615 148 465 112 LIABILITIES AND STOCKHOLDERS’ EQUITY Dec 10 Dec 09 Central Bank of Tunisia and CCP 10 005 Deposits and Holdings of Banking and Financial Institutions 46 435 26 208 242 162 139 543 1 175 2 818 46 180 41 837 345 957 210 406 33 319 28 835 Corporate Capital 100 000 100 000 Consolidated Reserves 118 418 108 702 123 236 17 331 16 933 Total Stockholders’ Equity 235 872 225 871 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY 615 148 465 112 Credits on Banking Institutions Locked-Up Securities Total Assets Customers Deposits Loans and Special Resources Other Liabilities Total Liabilities - Share of Minority Shareholders Consolidated Results Carried Forward Financial Year’s Consolidated Net Result Annual Report 2010 57 CONSOLIDATED OFF BALANCE SHEETS COMMITMENTS As of 31st December ( In thousand of Tunisian Dinars) 31 dec 2010 31 dec 2009 POTENTIAL LIABILITIES Securities, Endorsements and Other Warranties Granted 47 345 16 071 Documentary Credits 10 911 11 888 7 098 4 609 65 354 32 568 3 418 5 811 522 247 3 940 6 058 Assets Granted with Warranty TOTAL POTENTIAL LIABILITIES COMMITMENTS GRANTED Financing Commitments Granted Commitments on Securities Warranties Granted TOTAL COMMITMENTS GRANTED COMMITMENTS ACCEPTED Financing Commitments Accepted 11 000 Warranties Accepted 84 824 64 186 95 824 64 186 Other Commitments Accepted TOTAL COMMITMENTS ACCEPTED 58 CONSOLIDATED INCOME STATEMENTS As of 31st December (In Thousands of Tunisian Dinars) 2010 2009 Interests and Allied Revenues 23 908 17 576 Commissions 4 946 2 849 Earnings on Commercial Portfolio and Financial Operations 3 924 2 828 Revenue of Investment Portfolio 1 568 1 022 34 346 24 275 Intérêts encourus et charges assimilées (8 224) (4 508) Total Banking Operating Costs (8 224) (4 508) NET BANKING INCOME 26 102 19 767 ( 13 493) (6 374) (7 499) (6 999) (6 357) 464 129 (24) Appropriation to Amortizations and Resorptions (1 005) (1 541) Other Operating Incomes 17 194 11 542 OPERATING RESULT 15 071 16 835 Balances in Earnings / Losses Generated by Other Ordinary Elements 1 386 42 Corporate Tax (1 319) (1 385) Shareholdings in Consolidated Companies 3 080 2 391 Share of Minority Shareholders (887) (950) 17 331 16 933 Banking Operating Incomes Total Banking Operating Incomes Banking Operating Costs Interests Incurred and Allied Costs Operating Overheads Personnel Costs Appropriation to Provisions and Results of Corrections on Credits Appropriation to Provisions and Results of Corrections on Investment Portfolio FINANCIAL YEAR’S NET RESULT Annual Report 2010 59 CONSOLIDATED CASH FLOW STATEMENTS As of 31st December 2010 2009 Banking Operating Incomes Collected 47 515 34 296 Banking Operating Incomes Paid out (19 293) 13 761 Deposits/Withdrawals of Other Banking and Financial Institutions 34 677 12 347 Loans and Advances/Repayment of Loans and Advances Granted to Customers (107 311) 76 456 Deposits/Withdrawals of Customers Deposits 101 278 78 277 (827) 532 Sums Paid to Personnel and Miscellaneous Creditors (6 394) 4 956 Other Cash Flow Generated by Operating Activities (18 034) 6 548 Taxes on Profits (2 051) 817 NET CASH FLOW GENERATED BY OPERATING ACTIVITIES 29 560 11 316 Interests and Dividends Collected on Investment Portfolio 2 409 1 410 Acquisitions/Assignments on Investment Portfolio (3 662) (9 008) Acquisitions/Assignments on Fixed Assets (1 280) (1 880) NET CASH FLOW GENERATED BY INVESTMENT ACTIVITIES (2 533) (9 478) Increase/Decrease in Special Resources (2 326) (732) Dividends Paid (4 000) (4 000) NET CASH FLOW GENERATED BY FINANCING ACTIVITIES (6 326) (4 732) 20 701 (2 894) 1 874 4 768 22 575 1 874 OPERATING ACTIVITIES Placement Bonds INVESTMENT ACTIVITIES FINANCING ACTIVITIES NET VARIATION OF LIQUIDITY AND LIQUIDITY EQUIVAENTS DURING FINANCIAL YEAR LIQUIDITY AND LIQUIDITY EQUIVAENTS IN THE BEGINNING OF THE FINANCIAL YEAR LIQUIDITY AND LIQUIDITY EQUIVAENTS AT THE END OF THE FINANCIAL YEAR 60 AUDITORS’ GENRAL REPORT FINANCIAL YEAR ENDED 31st DECEMBER 2010 Honourable Shareholders: In enforcement of the assignment entrusted to us by your esteemed Ordinary General Assembly, we submit you our report on control of financial statements of STUSID BANK as of 31st December 2010, as attached hereto, as well as the verifications and specific information provided for by law and by professional standards. I- OPINION ON FINANCIAL STATEMENTS We have audited the consolidated financial statements of STUSID BANK for financial year ended 31st December 2010 which show total assets net of amortizations & provisions amounting to 615 291 KTND and profit result amounting to 17 331 KTND and off-balance sheet commitments amounting to 69 294 KTND. Such financial statements have been made under the responsibility of the management and administration bodies of the company in accordance with the professional standards applicable in Tunisia. Such responsibility includes design, putting in place and follow-up of an internal control relating to the preparation and the faithful presentation of financial statements not containing such significant abnormalities, whether resulting from frauds or from errors, as well as the determination of reasonable accounting estimates in view of the circumstances. Our responsibility consists in expressing an opinion on such financial statements based on our audit performed in accordance with the professional standards applicable in Tunisia and taking into consideration the prudential standards as well as the terms of reference for audit of accounts, as defined by the circular of CENTRAL BANK OF TUNISIA n° 23 of 1993 released on 30th July 1993. Such standards require from our part to comply with the rules of ethics and to plan and carry out the audit process in order to obtain a reasonable assurance that the consolidated financial statements of STUSID BANK, do not contain any significant abnormalities. An audit involves the implementation of such procedures in order to collect probant elements concerning the amounts and the information provided in the financial statements. The choosing of procedures falls under our judgment and so does the assessment of the risk that the financial statements contain such significant abnormalities, whether resulting from frauds or from errors. By proceeding to such risk assessments, we take into account the current internal control within the Bank relating to the preparation and the faithful presentation of financial statements in order to define such appropriate audit procedures in the circumstance, and not with the aim of expressing an opinion on the efficiency of such internal control. An audit also includes the appraisal of the appropriate character of accounting methods maintained and the reasonable character of the accounting estimates made by the management and administration bodies, as well as the appraisal of the thorough presentation of financial statements. We maintain the actions accomplished within this framework make a reasonable basis for grounding our opinion as follows: • The groups SASEJ and SICAB have been consolidated on the basis of their provisional Annual Report 2010 61 financial statements as indicated in the Notice 5-1. • The equivalence matching has been used in place of total integration for the company FLOR’ALIA the sole financial statements of which have been made up on 30th June 2010. • Certain companies have not been integrated within the consolidation perimeter for various reasons, of which in particular the absence of financial statements or that the relevant company is under liquidation as indicated in the Notice 5-3. In our opinion, the consolidated financial statements attached hereto are regular and faithfully reflect, in all significant aspects, the consolidated financial situation of STUSID BANK as of 31st December 2010, as well as the results of its operations and of its cash-flow for the financial year closed on such date, in accordance with the accounting principles generally accepted in Tunisia. II - SPECIFIC VERIFICATIONS AND INFORMATIONS We have also proceeded, in accordance with the trade’s standards, to the specific verifications provided for by law. On the basis of such verifications, we have no comments to formulate on the faithfulness and the concordance with the consolidated financial statements of the accounting-related information provided in the Board of Director’s management report for the relevant financial year. We have also proceeded, as part of our audit, to examine the internal control procedures related to the accounting information process and the elaboration of individual financial statements of STUSID BANK (parent company). We point out, in accordance with the requirement of Article 3 of the Law 94-117 dated 14th November 1994 as modified by the Law 2005-96 dated 18th October 2005, that our audit underscored insufficiencies affecting the reliability of some accounts of rubrics “Other Assets” and “Other Liabilities”, including in particular inter-headquarter and suspense accounts. Made at Tunis on 29th of June 2011 THE AUDITORS Kalthoum BOUGUERRA F.M.B.Z. KPMG TUNISIE 62 Mourad GUELLATY Cabinet Mourad GUELLATY ORDINARY GENERAL ASSEMBLY’S RESOLUTIONS First Resolution The Ordinary General Assembly of shareholders of STUSID BANK, after examination of Board of Directors’ Report on STUSID BANK’s business relating to financial statements as of 31/12/2010, as well as Auditors’ Reports related to individual and consolidated financial statements as of 31/12/2010, hereby approves the Board of Director’s report, as well as the individual and consolidated financial statements as of 31/12/2010, as presented by the Board of Directors. Such resolution was passed at the unanimity. Second Resolution The Ordinary General Assembly hereby gives full and complete discharge to the directors for their management during the financial year 2010. Such resolution was passed at the unanimity. Third Resolution The Ordinary General Assembly decided to allot the results relating to financial year 2010 as follows: Net Profit Results carried forward from previous financial years First Balance Statutory Reserves 5% (elective)* Second Balance Reserves 9 726 618,473 122 789,452 9 849 407,925 492 470,396 9 356 937,529 6 000 000,000 Third Balance 3 356 937,529 TND Dividends 3 000 000,000 TND Fourth Balance 356 937,529 TND Social Fund 250 000,000 TND Fifth Balance 106 937,529 TND Results carried forward 106 937,529 DT 0,000 TND Sixth Balance Such resolution was passed at the unanimity TND TND TND TND TND TND Fourth Resolution Pursuant to the provisions of Article 29 of STUSID BANK’s Articles of Association, the Ordinary General Assembly decides to set the director’s fee for financial year 2010 to TND 6 600 net of tax per director. Annual Report 2010 63 And pursuant to the provisions of Article 12 of Law n° 96-2005, the Ordinary General Assembly decides to grant a gratuity with an equal amount to the members and to the secretary of audit standing committee as well as to the members and secretary of the credit executive committee. Such resolution was passed at the unanimity. Fifth Resolution Pursuant to the provisions of Article 19 of STUSID BANK’s Articles of Association, the Ordinary General Assembly ratifies the nomination, as Directors of STUSID BANK, of Mr. Ahmed Farid ALAWLAKI in replacement of Dr Abdulaziz NASRALLAH as from 24th November 2010, and of Mr. Adel ALHOWAR in replacement of Mr Saïd SAEERI as from 24th November 2010, Mrs Amel RIHANE in remplacement of Mr Messaoud ALOUI as from 01st June 2011, and Mr Zakaria HMED in remplacement of Mr Tarek ZINE as from 29th June 2011, and that for the remaining period of mandates of their predecessors which will end on the date of holding the Ordinary General Assembly which is to proceed on the accounts of financial year 2012. Such resolution was passed at the unanimity. Sixth Resolution Pursuant to the provisions of the Law 2006-19 dated 2nd May 2006, the General Ordinary Assembly decides to nominate “Cabinet Mourad Guellaty” as the auditors of STUSID BANK for the accounting year 2011-2012 and 2013. It decides to nominate the same, as well, as auditor for the consolidated financial statement for the accounting year 2011- 2012 and 2013 and determines its fees in accordance to the applicable law. Such resolution was passed at the unanimity. Seventh Revolution The General Ordinary Assembly allows the emission of one or more obligatory loans with a global maximum amount of 50 millions of Dinars, from the day and during the period separating the date of the present Ordinary General Assembly and the date of the Ordinary General Assembly deliberations on the next accounting year. The Ordinary General Assembly delegates, for this purpose, all the powers to the bank Board of Directors in order to determine the successive amounts of these obligatory loans as well as their conditions, pursuant to the Article 331 of the Trading Company Code. Such resolution was passed at the unanimity. Eighth Resolution The Ordinary General Assembly confers all powers to the Managing Director or any other person designated by him in order to complete all formalities and procedures provided for by law. Such resolution was passed at the unanimity. 64
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