Syrian affiliates of local banks register net loss

Banks lose $28 million in first half down from net profits of $23 million in same period last year

The Syrian affiliates of Lebanese banks have posted a net loss of $28 million in the first six months of the year, compared to net profits of $23 million in the same period of 2011. The consolidated balance sheet of all seven affiliates shows the banks put up an acceptable performance despite economic depression in Syria and heightened risk from operating in a conflict zone.

Nevertheless, the banks' results showed consolidated net profits grew by 55 percent year-on-year to around $29.7 million. This growth, however, was due to unrealized foreign exchange gains resulting from the collapse of the Syrian lira.

The banks' consolidated assets were 2.8 percent higher year-on-year at $5.2 billion. Bank BEMO Saudi Fransi had the largest share of these assets at 25 percent. Bank of Syria & Overseas (BLOM) accounted for 19 percent of consolidated assets, followed by Bank Audi Syria at 17 percent, Byblos Bank Syria at 15 percent, Fransabank Syria at ten percent, Syria Gulf Bank (First National Bank) at 9.8 percent, and Sharq Bank at four percent.

The banks' loans portfolio fell by 13.4 percent to $1.87 billion. Customer deposits rose by 2.7 percent to $3.9 billion.
Reported by Hanadi Chami