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Banks maintain profit growth
More diversification in loans to the private sector
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Profits of commercial banks during the first half of 2013 were up by 5.5 percent year-on-year to $845 million, according to a report published by the Central Bank (BDL). Banks’ consolidated budget grew by 8.2 percent to $157 billion. “Banks are still showing a good performance despite the impact of regional turmoil and local economic slowdown on their activity,” said Tania Moussallem, Assistant General Manager and Head of Strategic Development and Financial Management Group at BLC Bank.
Banks’ deposits portfolios continued to grow. Deposits by private sector resident and non-resident clients were up by 9.4 percent to $131 billion. Deposits in foreign currencies grew by 10.7 percent, while deposits in Lebanese liras were up by 7.1 percent.
There was a 0.94 percent increase in lending to the private sector resident and non-resident clients. The total size of loans was up by 7.5 percent to $44.7 billion. “Most banks are diversifying their lending portfolio toward the private sector,” said Freddie Baz, General Manager, Group Chief Financial Officer and Strategy Director at Bank Audi. “Banks are primarily financing sectors that contribute to GDP growth, especially the services sector that includes trade, retail, insurance, and IT, among others,” he said.
Lending in Lebanese liras reached the equivalent of $10 billion, up by 12.2 percent. These accounted for around 23 percent of overall loans, up from 22 percent at end-June 2012.
Reported by Leila Rahbani
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Date Posted:
Aug 20, 2013
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