BEIRUT: Bank of Beirut’s net profit for the first quarter of 2011 rose by 1.38 percent to $20 million as compared to the first quarter of 2010, although assets and customer deposits jumped by 26.86 percent and 36.11 percent respectively.

Roger Dagher, chief financial officer of Bank of Beirut, said the remarkable growth of assets during the period was attributed to internal expansion and the acquisition of the Australian Subsidiary Laiki Bank (Australia) Ltd. that was completed in March 2011.

The chairman of Bank of Beirut, Salim Sfeir, said last month that the acquisition of the Australian bank was a major step for the Bank of Beirut, adding that the negotiations had not been easy. He added that it took around 16 months of negotiations with the bank and the Regulatory authorities (APRA) to get the deal and the approval to operate in Australia, which has the highest regulatory standards.

He said huge sums went in the acquisition, in what is considered as the bank’s largest investment outside Lebanon. The acquisition cost, the increase of capital and the liquidity support of the Australian subsidiary totaled around $420 million.

Dagher stressed that the growth achieved by Bank of Beirut was remarkable and the low growth in profitability is due mainly to the market conditions, linked to the political situation and shrinking interest margins. He added that the bank is aiming to achieve better growth rates for the year 2011.

Commenting on the political unrest in the region, Dagher said that Bank of Beirut is immune to any shocks caused by protests, as it is not investing in the countries having difficulties, and that the long-term strategy of the bank has been to expand regionally and internationally to stable countries.

“As you know, Bank of Beirut has a presence in United Kingdom, Germany, Cyprus, the Sultanate of Oman and Australia, which are highly rated countries with proven political and economical stability,” he said.

For year 2011, Dagher projected that the bank’s growth rates will exceed 10 percent, thus outperforming the market.

Dagher did not rule out any foreseeable merger or acquisition, however, Bank of Beirut is always ready to grab any opportunity that will enhance his situation within the scope of the long-term strategy of the bank.

Bank of Beirut is one the five Lebanese banks that are listed on Beirut Stock Exchange.