The ongoing challenges faced by the Lebanese fiscal and economic environment prevent an accurate reflection of the crises on the financial statements. In fact, the first nine months of 2020 were marked by the emergence of multiple lbp/usd exchange rates, interest rate limitation and dwindling foreign currency inflows. This has been reflected in Bank Audi’s un-audited, consolidated financial results for Q3 2020, were the Management mentioned that it has resolved to allocate all profits to expected loss allowances until the dissipation of uncertainties.
In terms of the Balance sheet, total assets fell by 10.85% from end of 2019 to Q3 2020 to reach $35.24 B as end of third quarter 2020. In details, ‘cash and balances with central bank’ and ‘Loans and advances to customers at amortised cost’ declined by 7.86% and 17.52% to $14.16 B and $8.46 B, respectively. On the Liabilities side, ‘Customer’s deposits’ (grasping 81.83% of Total Assets) decreased by 10.39% to $26.36 B; meanwhile ‘shareholders’ equity’ rose by 2.51% to $3.04 B.
In addition, Bank Audi booked $109.6 M in ‘provisions for expected credit losses’ against $118.6 M booked end of 2019. ‘Net interest income’ reached 794.62 M, down by 5.89% from Q3 2019; whereas ‘net fee and commission income’ stood at a loss of $283.19 M in Q3 2020. As to ‘total operating expenses’, showed a negative $442.9 M in Q3 2020, down by 12.99% from Q3 2019.
It is also worth mentioning that 39% of its assets originated from outside Lebanon and so did 31% of its operating profits.