Bank Audi published on 19/11/2021 its non-audited financial results for Q3 2021. In its statement, Bank Audi said that “persisting excessive uncertainties arising from a lasting financial crisis since 2019, prevented Management to estimate in a true and fair manner, and as per IFRS, the adverse impact of those matters on the Bank’s financial position and equity, which it anticipates to be material”. The Bank added that “a number of measures have been taken to reinforce the Bank’s financial standing, of which most importantly the capital increase completed in 2020 and the sale of the operations in Jordan, Iraq and Egypt. As a result, the Bank is in compliance with the regulatory requirement to increase its shareholders’ equity by 20%, as requested by the Central Bank of Lebanon”. Also, the “generation of an operating surplus that was fully allocated to cover one-off losses tied to the crisis, within an adopted policy of allocation of all recurrent profits to provisions and to cover exceptional losses until the dissipation of uncertainties”.
After incurring $617.04 M in net losses on financial assets at fair value and booking $7.44 M in net impairment losses on financial assets, Bank Audi made losses of $107.33 M at end September 2021, compared to nil in September 2020, and noting that $52.31M were made in net profits from the Bank’s discontinued operations. In terms of the balance sheet, assets stood at $27.96 B at Q3 2021, after registering $35.43 B at end 2020. In the same period, deposits decreased from $21.53 B to 20.84 B; loans declined from $6.14 B to $5.26 B; and shareholders’ equity dropped from $2.95 B to $2.73 B.
Bank Audi’s Financials
USD’000 30-Sep-21 31-Dec-20
Loans to Customers 5,263,221 6,136,353
Customers’ Deposits 20,841,762 21,528,168
Total Equity 2,732,303 2,950,859
Total Assets 27,963,346 35,431,066
Net Income (107,327) (144,783)
Loan to Deposits % 25.3 28.5