1. Definition
Return on equity sets a bank's net profit against its shareholders' equity. It is usually written ROE.
It says what the bank earns for each dinar its shareholders have put in or left in.
It is the first figure a shareholder looks at. They compare it with what their money would earn elsewhere.
2. The calculation
ROE sets net profit for the period against average equity.
Over a half-year, profit is multiplied by 2 to give an annual order of magnitude, as an indication. Average equity is the average of the opening and closing figures of the half-year.
Example, the bank with the highest ROE: BIAT, in the first half of 2026, with net profit of 271.4 million dinars, or 22.8% of its average equity, a year.
ROE splits exactly into two factors: return on assets (ROA) multiplied by leverage. The two neighbouring briefs cover each of them.
3. Why it matters
It gathers the whole income statement into one figure. Income, costs, cost of risk and tax all go through it.
It says whether the bank creates value for its shareholders. An ROE that stays below what they expect from their investment destroys value.
It also drives growth. Retained profit strengthens equity, which carries the loans of the following years.
4. What it does not say
It does not say where the return comes from. The same ROE can come from profitable assets or from a large balance sheet carried by little equity.
It does not say the risk taken to get it. The higher the leverage, the faster a loss eats into equity.
It does not say regulatory solvency. That weighs assets by their risk and is read in the capital adequacy ratio.
5. Where to read it in Tunisian financial statements
Banks' financial statements follow Tunisian accounting standards NCT 21 to 25. Two lines are enough:
- net profit for the period, on the last line of the income statement;
- total equity, on the balance sheet, at the opening and at the close of the half-year.
The statement of changes in equity, in the notes, shows what moved between the two dates: profit, dividends, transfers to reserves.
6. Three reading traps
First trap: closing equity already includes the half-year's profit. The profit being measured ends up in the denominator, and ROE looks lower than it is.
Second trap: dividends, voted in the spring, are usually paid before the end of the half-year. Closing equity is reduced by them, and ROE looks higher. Averaging opening and closing figures softens both effects without removing them.
Third trap: a half-year is not a year. Multiplying by 2 assumes a second half like the first, while provisions and one-off items do not come at the same pace.
7. Ranking of the 10 listed banks by ROE, first half of 2026
Banks are ranked from the highest value to the lowest, amounts in millions of dinars:
| Rank | Bank | Net profit (TND m) | Average equity (TND m) | ROE, annualised |
|---|---|---|---|---|
| 1 | BIAT | 271.4 | 2 381.4 | 22.8% |
| 2 | Attijari Bank | 123.1 | 1 086.6 | 22.7% |
| 3 | Amen Bank | 161.9 | 1 725.5 | 18.8% |
| 4 | BNA | 156.3 | 2 415.5 | 12.9% |
| 5 | BT | 95.6 | 1 507.7 | 12.7% |
| 6 | UBCI | 30.0 | 591.3 | 10.2% |
| 7 | UIB | 52.3 | 1 087.3 | 9.6% |
| 8 | BH Bank | 15.2 | 1 376.0 | 2.2% |
| 9 | STB | 9.1 | 1 331.8 | 1.4% |
| 10 | ATB | −27.6 | 599.9 | −9.2% |
Out of scope: BTE (preferred dividend shares) and Wifak International Bank (an Islamic bank).
ROE ranges from −9.2% to 22.8% depending on the bank. Across the 10 banks taken together, it stands at 12.6%.
Key points
- ROE = annualised net profit / average equity.
- It says how much the bank earns for its shareholders, not how: ROA and leverage say that.
- Over a half-year, it is annualised as an indication, and dividends paid distort it.
Read also: bank ROA, bank leverage, section 5 of the Readings note, the banks note, the series method.
Sources: interim individual financial statements at 30 June 2026 published with the Conseil du marché financier (CMF), notes included.