Bank Audi Consolidated Activity Highlights as at End-March 2018

April 26, 2018
3 minutes read
Bank Audi Consolidated Activity Highlights as at End-March 2018

While the first quarter of this year reported a continuing low growth in the real sector of the economy, the quarter ended with a glimpse of hope for a potential economic recovery, driven by the successful CEDRE conference for Lebanon that raised US$ 11.5 billion of international pledges to finance the country’s infrastructural rehabilitation. It is widely believed that the aid package is credit positive for Lebanon because it supports the resumption of public investment albeit it remains subject to the execution of the reforms that the Lebanese government has committed to.

In the Middle East & North Africa region, where Bank Audi has a large presence, growth is projected to increase from 2.2% in 2017 to 3.2% in 2018 amid higher oil prices and a slight improvement in security conditions. Growth in Egypt, one of the main market of presence in the region, is projected to rise to 5.2% in 2018, reflecting stronger momentum in domestic demand and the effect of structural reforms. In Turkey, the other important market of presence for Bank Audi, growth has reported a robust 7.4% in 2017, with continuing robust real sector performance in the first quarter of this year, but monetary pressures accentuated on the back of a strong correlation between growth rates and current account deficits and within the challenging regional environment, generating a 5.6% depreciation of the national currency in the first quarter of the year.


Within this context, Bank Audi sal achieved a good performance in the first quarter of 2018, with consolidated unaudited net profits of US$ 114 million, as compared to 110 million in the first quarter of 2017, broken down over 58% in Lebanese entities and 42% in entities outside Lebanon (of which 17% from Odea Bank in Turkey and 12% from Bank Audi Egypt). Those results were realised following an allocation of US$ 27 million of consolidated net loan loss provisions. This performance is in line with the budget for the period while General Management continues to adopt a comprehensive performance management scheme across entities aiming at sustaining spreads, improving non-interest income and generating cost savings. Such a policy translated into a further reinforcement of the Group’s financial standing, as witnessed by a 68.2% primary liquidity to customers’ deposits ratio, a 3.8% gross doubtful loans to gross loans ratio, a 17.9% capital adequacy ratio and a 50.8% cost to income ratio.


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