BEIRUT: Byblos Bank, Lebanon’s third largest bank in terms of assets, said Thursday that its net profits in 2012 rose by 1.2 percent to $179.7 million compared to the same period of 2010.

“Net profit for 2011 increased by 1.2 percent to $179.7 million, compared to $177.7 million in 2010. The bank allocated provisions for credit losses – specific and collective – of $44 million during 2011, $31.9 million of which was collective provisions,” Byblos bank said in a statement to the media.

“Specific and collective provisions allocated against the loan portfolio in Byblos Bank Syria amounted to $16.7 million,” the statement added.

The bank’s unaudited consolidated total assets increased by 8.6 percent (or $1.3 billion) during 2011 to $16.6 billion as of Dec. 31, 2011, compared to $15.3 billion at the end of 2010.

Customer deposits increased during 2011 by 7.8 percent (or $900 million to $12.8 billion as of Dec. 31, 2011.

Net customers’ loans increased by 6.3 percent (or $200 million) during 2011 to $4.0 billion as of Dec. 31, 2011.

Return on Average Assets and Return on Average Common Equity stood at 1.11 percent and 12.30 percent respectively as compared to 1.22 percent and 14.03 percent in 2010. Cost to income decreased considerably to 43.28 percent in 2011 compared to 45.18 percent in 2010.

The statement added that the primary liquidity placed with central banks amounted to $9 billion, representing 70.2 percent of total deposits at the end of December 2011, compared to 65.5 percent at the end of December 2010, one of the highest in the sector.

“Moreover, the bank continued in its strategy to match long-term foreign currency assets with long-term funding in foreign currency, as evidenced by the recent issuance of $300 million in 10-year bonds carrying a coupon of 7 percent,” Byblos Bank said.

Byblos is the third listed bank to release the official results.

All Lebanese listed companies are required to release their results at the end of each quarter, according to the Beirut Stock Exchange.

The events in Syria coupled with deep political rifts in Lebanon, as well as falling interest rates, have affected the profits of almost all Lebanese banks.

Byblos Bank – as with other Lebanese banks which have a presence in Syria – was apparently affected by the 10-month uprising in the country.

It’s not yet clear to what extent Lebanese banks were hit by the events in Syria and Egypt.

But most analysts say banks were compelled to increase provisions in these countries to weather the impact of security incidents.

Some reports say that Lebanese banks in Syria are hardly lending to the private sector, in an effort to protect their interests.

But confidentially several Lebanese bankers assured The Daily Star that they have no intention to leave Syria or Egypt.