Mobile  |  About us  |  Photos  |  Videos  |  Subscriptions  |  RSS Feeds  |  Today's Paper  |  Classifieds  |  Contact Us
The Daily Star
03:48 AM Beirut time
18 °C
Blom Index
Follow this story Print RSS Feed ePaper share this
Profits of Syrian affiliates of Lebanon banks sink 98.2 percent
Central Bank of Lebanon.
Central Bank of Lebanon.
A+ A-

BEIRUT: Profits of Lebanese banks operating in Syria in the first three months of 2013 fell by 98.2 percent to $640,000 from $49.8 million in the same period of 2012. According to the preliminary financial results issued by the affiliates of seven Lebanese banks operating in Syria, net profits sunk to 52.7 million Syrian pounds in the first quarter of 2013, constituting a decrease of 98.2 percent from 2.9 billion pounds in the first quarter of 2012. That was compared to aggregate net losses of 489.5 million pounds in the fourth quarter of 2012.

The profits were equivalent to about $0.65 million in the first quarter of 2013 compared to $49.8 million in the same period last year, and to $6.9 million in the fourth quarter of 2012, based on the prevailing official exchange rates during the covered quarters.

Lebanese banks in Syria have increased provisions for nonperforming loans, though they realize this will affect profits considerably.

All of the Lebanese banks said they had no intention of withdrawing from the Syrian market now or in the future because they believed the situation would get back to normal eventually.

The report, which was published by Lebanon This Week, the economic publication of the Byblos Bank Group, said that total assets reached 317 billion pounds at the end of March 2013, constituting an increase of 2.2 percent from end-2012.

The increase was due to a 16.8 percent growth in the assets of Bank of Syria & Overseas, a 6.3 percent rise in those of Fransabank Syria and a 1 percent increase in those of Banque BEMO Saudi Fransi.

These rises offset the 24.2 percent fall in the assets of Bank Al-Sharq, the affiliate of Banque Libano-Francaise, the 2.3 percent decrease in those of Bank Audi Syria, the 0.7 percent decline in those of Byblos Bank Syria and the 0.8 percent contraction in the assets of Syria Gulf Bank, the affiliate of First National Bank.

The aggregate shareholders’ equity of the seven banks reached 35.3 billion pounds, or $406.5 million, at end-March 2013, unchanged from end-2012. The aggregate assets of the seven banks were equivalent to about $3.7 billion, based on the prevailing official exchange rates during the covered period.

The banks’ total operating income reached 4.7 billion pounds in the first quarter of 2013, down 35.7 percent from 7.3 billion pounds in the same period last year.

The large annual decrease in net income is mainly attributed to a 99.7 percent decline in the profits of Bank Audi Syria, a 59.5 percent drop in those of Banque BEMO Saudi Fransi, a 64.3 percent contraction in those of Fransabank Syria, a 95.5 percent fall in those of Bank Al-Sharq, and an 83.5 percent decrease in those of Bank of Syria & Overseas.

A version of this article appeared in the print edition of The Daily Star on June 25, 2013, on page 5.
Home Lebanon
Syrian Banks / Lebanon / Banking & Finance

Your feedback is important to us!

We invite all our readers to share with us their views and comments about this article.

Disclaimer: Comments submitted by third parties on this site are the sole responsibility of the individual(s) whose content is submitted. The Daily Star accepts no responsibility for the content of comment(s), including, without limitation, any error, omission or inaccuracy therein. Please note that your email address will NOT appear on the site.

comments powered by Disqus

Baabda 2014
Follow us on Facebook Follow us on Twitter Follow us on Linked In Follow us on Google+ Subscribe to our Live Feed
Pictures of the day
A selection of images from around the world- Wednesday, April 23, 2014
View all view all
Rami G. Khouri
Rami G. Khouri
Israel shows Zionism’s true colors
Michael Young
Michael Young
For Christians, blessed are the dividers
David Ignatius
David Ignatius
An Iran deal is close, but we’re not there yet
View all view all
Click to View Articles
Privacy Policy | Anti-Spamming Policy | Disclaimer | Copyright Notice
© 2014 The Daily Star - All Rights Reserved - Designed and Developed By IDS