Circular to Banks and Financial Institutions No. 2024-04 of February 8, 2024

1 Tunis, February 8, 2024 CIRCULAR TO BANKS AND FINANCIAL INSTITUTIONS No. 2024-04 of February 8, 2024 Subject: Distribution of dividends for the 2023 fiscal year. The Governor of the Central Bank of Tunisia, Having regard to Law No. 2016-35 of April 25, 2016, establishing the status of the Central Bank of Tunisia and in particular its Articles 7, 8, and 18, Having regard to Law No. 2016-48 of July 11, 2016, concerning banks and financial institutions and in particular its Articles 63 and 66, Having regard to Circular No. 2018-06 of June 5, 2018, concerning capital adequacy standards, Having regard to Circular No. 2021-05 of August 19, 2021, concerning the governance framework for banks and financial institutions, Having regard to the opinion of the Compliance Control Committee No. 2024-4 dated February 7, 2024, as provided for in Article 42 of Law No. 2016-35 of April 25, 2016, establishing the status of the Central Bank of Tunisia and in particular its second paragraph regarding circulars having an urgent character, Considering that banks and financial institutions must pursue prudent dividend distribution policies in order to maintain and consolidate capital buffers above regulatory minimum levels, Considering the persistence of difficult economic conditions and their repercussions on businesses and individuals, Considering the imperatives of the convergence process towards Basel standards and IFRS norms.

2 Decides: Article 1 - The distribution of dividends for the 2023 fiscal year by banks and financial institutions shall be carried out under the following conditions:

• Up to 35% of the 2023 fiscal year profit for banks and financial institutions presenting solvency and Tier 1 ratios as of the end of 2023, after deduction of dividends to be paid, which exceed regulatory minimum levels by at least 2.5%;
• Without limit and after prior approval of the Central Bank of Tunisia, for banks and financial institutions presenting solvency and Tier 1 ratios as of the end of 2023, after deduction of dividends to be paid, which exceed regulatory minimum levels by at least 2.5% and 3.5%, respectively. Article 2 - Without prejudice to the conditions set out in Article 1 of this circular, prior approval from the Central Bank of Tunisia is required for any dividend distribution by banks and financial institutions not complying, as of the end of 2023, with the prudential capital adequacy standards set out in Articles 50, 51, and 52 of the aforementioned Circular No. 2018-06. Article 3 - This circular does not apply to payment institutions. Article 4 - This circular shall enter into force as of the date of its publication. The Governor, Marouane EL ABASSI