Profitability:
Bank of Beirut S.A.L profits increased by 51%, compared to 2007, reaching LBP 100 billion (around USD 66 million) at end of 2008, compared to LBP 66 billion (around USD 44 million) at end of 2007.
These excellent results achieved by the Bank in spite of the global financial crisis prove the relevance of the strategy and prudent policies adopted by Bank of Beirut, aimed at improving the Bank’s position by achieving sustainable growth based on sound financial and administrative foundations and complying with the highest international standards of risk management, along with maintaining a high liquidity ratio.
These positive indicators were coupled with an achievement for Bank of Beirut, represented by the issuance of new preferred shares amounting to USD 60 million, within the most difficult financial circumstances in the world. Bank of Beirut shareholder’s Equity increased thus to reach around USD 515 million, as at 31/12/2008, highlighting the trust conferred to Bank of Beirut, one of the major Lebanese banks, and therefore to the whole Lebanese banking and financial sector.
This increase in profits resulted from the significant growth in the Bank’s activity in Lebanon and abroad, especially in trade finance business, retail activities and housing loans along with corporate finance where many SME productive projects are being financed by the Bank.
The strong growth in net profit was mainly driven by:
- The 55% growth in “non interest income”, namely the “net commission and fee income” representing 32% of the financial revenues. The growth was primarily led by a growing trade finance business, given that Bank of Beirut is one of the major players in this field, in addition to a strong retail base growth.
- The maintain of positive interest margins through monitoring of cost of funds and better efficiency on grasping investment opportunities. The growth in net interest margin for 2008 reached 30% compared with 2007.
- The implementation of the cost containment policy led to a decrease in the “Cost to Financial Revenues” ratio from 56 % at the end of 2007 to 50% at the end of 2008
Growth
This Period was marked by a significant growth in the overall balance sheet items:
- Total Assets as at the end of 2008 reached approximately USD 5.8 billion, registering an increase of 10 % compared with 2007.
- Total customer’s deposits and certificates of deposit amounted to USD 4.1 billion at the end of 2008, recording an increase of 11% or USD 400 million U.S. dollars compared with the same period last year.
- Total Loans to customers reached about USD 1.4 billion as at 31/12/2008, compared to USD 1 billion on 31/12/2007, i.e. an increase of 32%.
- Shareholder’s equity (Tier I and II) increased from USD 465 million as at December 31, 2007 to USD 515 million as at December 31, 2008, i.e. an increase of 10%.
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