Tourism Bank debut in Iran's stock market boosts transparency, competition

Iran's stock market witnessed a significant milestone on December 3, 2022, as Tourism Bank, one of the private banks in Iran, opened its doors to trading. This expansion into Iran's second stock market marks a pivotal moment in the bank's history and reflects the growing transparency and competitive landscape of Iran's financial sector.

During the unveiling ceremony of Tourism Bank's trading symbol, Mohammadreza Fahmi, the CEO of the bank, was in attendance. He welcomed the bank's inclusion in Iran's stock market as a cornerstone moment for the bank. Fahmi also appreciated the robust support from individual shareholders during the bank's initial public offering.

In the initial public offering for "Vagardesh," most transactions were buys from real investors, who secured up to 98 percent ownership. This demonstrates the substantial trust real investors place in Tourism Bank.

Following the introduction of Tourism Bank's trading symbol in Iran's stock market, the bank will trade within a 5 percent price fluctuation range. This action is expected to enhance the transparency of Tourism Bank's stock prices.

The introduction of the Tourism Bank's trading symbol on Iran's Stock Market can generate positive effects for the capital market in Iran, fostering increased transparency and competition.

• Increased Transparency:

The listing of Tourism Bank's trading symbol in Iran's Stock Market means the bank's financial data is now publicly available, leading to greater transparency in the stock market of Iran.

• Increased Competition:

The entrance of Tourism Bank into the secondary market boosts the number of banks in the market, thereby enhancing competition. Increased competition can provoke better bank performance as institutions strive to attract investments through improved outcomes, potentially leading to higher profits.

Moreover, competition can cause a reduction in banks' operational costs as they endeavor to streamline their processes to cut down expenses, possibly leading to enhanced efficiency.

Tourism Bank's financial information is accessible only to its shareholders. With the trading symbol's listing on Iran's stock market, this information will be publicly available, allowing investors to make more informed decisions when considering purchases of the bank's stocks.

Publicly Available Financial Information of Tourism Bank in Iran's stock market Includes:

Annual and interim financial statements

Board of Directors and statutory auditors' reports

Independent auditor's reports

This availability of information can aid investors in making more informed decisions about their investments. By accessing this data, investors can evaluate Tourism Bank's performance and ascertain its investment potential.

• Elevating Competition in Iran's Stock Market:

The inclusion of Tourism Bank in the secondary market increases the number of participating banks to thirteen, thereby intensifying competition in the stock market.

Enhanced competition can lead to improved performances among banks as they aim to attract investors by enhancing their operations. This could lead to increased profitability and efficiency.

• Augmented Profitability and Efficiency:

Increased competition might lead to higher profitability for banks as they aim to draw investors by amplifying their profits. This may lead to a rise in the stock prices of the banks and profitability for investors.

Additionally, heightened competition can also lead to better efficiency among banks as they seek to minimize their costs and maximize profitability through process optimization. This could result in increased profitability and efficiency for the banks involved.

Overall, the introduction of the Tourism Bank's trading symbol on Iran's stock market is anticipated to have favorable outcomes for the capital market in Iran, leading to heightened transparency and competition.