Bank Audi published this week its audited consolidated financial results for end 2020. The Bank said in its statement that the unprecedented tough operating environment in Lebanon – reflected in a lasting financial crisis for 16 months, the absence of a clear national recovery plan, the COVID-19 pandemic, the explosion of the Beirut port, in addition to the deepening recession, hyperinflation, and the multitude of exchange rates – have all prevented Management from estimating, in a true and fair manner and as per IFRS, the adverse impact of these factors on the Bank’s financial position and equity, which the Bank anticipates to be material. As a result, the external auditors expressed an adverse opinion on the 2020 financial statements. However, the Bank has taken measures to consolidate its financial position and standing, such as the $209 M capital increase in February 2020 and the sale of the Group’s entities in Egypt, Jordan and Iraq.
After booking $174.25 M in net impairment losses on financial assets, Bank Audi’s net profits stood at negative $144.78 M at end 2020 after registering negative $602.12 M at end 2019, noting that $66.5 M in net profits resulted from the Bank’s discontinued operations (net of tax). In terms of the balance sheet, assets fell by 10.38% to $35.43 B; deposits (excluding those from sold foreign units) decreased by 27.25% to $21.53 B; loans (also excluding those from sold foreign units) declined by 40.71% to $6.14 B; and shareholders’ equity dropped by 0.63% to $2.95 B.
Bank Audi’s Financials
| USD’000 | 31-Dec-20 | 31-Dec-19 |
| Loans to Customers | 6,136,353 | 10,349,692 |
| Customers’ Deposits | 21,528,168 | 29,593,944 |
| Total Equity | 2,950,859 | 2,969,569 |
| Total Assets | 35,431,066 | 39,535,215 |
| Net Income | -144,783 | -602,115 |
| Loans /Deposits | 28.50% | 34.97% |
| CAR (Basel III) | 14.30% | 11.30% (Required ratio 10.50%) |