On the back of BDL’s Circular No.532 (issued Nov. 04th) which instructed commercial banks in Lebanon to raise their Capital by 10% before year-end (and another 10% by end-June 2020), the Board of Directors of Byblos Bank approved on Dec. 18th 2019 to increase its capital by $135M.
The bank statement issued also explains that the value of increase aforementioned is equivalent to 10% of Byblos Bank’s Common Equity Tier I i.e. compliant with BDL’s November 04th 2019 circular, and will be through the issuance of cash contribution interests, noting these last can be converted into common equity each year for the next 5 years at LBP 1,515.
It is worthy to note that Byblos Bank’s core shareholders (including Byblos Invest Holding) who compose approximately 50% of the share capital have “approved, in principle, to take part in this capital increase [..] hoping Lebanon’s operating environment would improve […] by taking the necessary measures[…] and structural reforms.”
Byblos Bank: H1 2019 Financial Highlights
| in USD millions | 30-Jun-19 | 31-Dec-18 | YTD |
| Total Assets | 25,646 | 25,007 | 2.56% |
| Net loans and Advances to Customers at Amortized Cost | 5,117 | 5,425 | -5.69% |
| Customers’ Deposits at Amortized Cost | 18,265 | 18,188 | 0.42% |
| Total Shareholders’ Equity | 1,866 | 1,920 | -2.85% |
| Profit for the Period | 59.89 | 66.90 | -10.48% |
| *June 30, 2018 |
Source: Beirut Stock Exchange; Byblos Bank