Lebanese Commercial Banks’ Total Assets Down Year on Year by 33.8% to $115B by February 2023

According to Lebanon’s consolidated commercial banks’ balance sheet, total assets decreased annually by 33.8% to stand at $115B by February 2023 amid BDL’s adoption of a new exchange rate of LBP 15,000 per USD.

On the assets side, currency and deposits with Central Bank represented a high figure of 73.86% of total assets; they dropped annually by 24.78% to settle at $84.94B in February 2023. Deposits with the central bank (BDL) represented 99.44% of total reserves, and decreased by 23.03% YOY, to reach $84.46B in February 2023. Furthermore, Vault cash in Lebanese pound fell by 84.98% on a yearly basis to stand at $476.88M by the same period. The drop is attributed to the calculation based on the new official exchange rate of LBP 15000 per USD.

Claims on resident customers, constituting 8.03% of total assets, shrank significantly by 61.23%, to stand at $9.23B in February 2023. Moreover, Resident Securities portfolio (5.79% of total assets) dropped by 60.68% in February 2023 to stand at $6.66B. More specifically, the Eurobond holding recorded a decline of 35.66% since February 2022, to reach $2.83B by end of February 2023. Additionally, claims on non-resident financial sector dropped by 8.99% YOY to stand at $4.13B by February 2023.

On the liabilities side, resident customers’ deposits were the main account, representing 65.22% of total liabilities; they decreased by 27.15% since February 2022 to reach $75B in the month of February 2023. In more details, deposits in foreign currencies (96.46% of resident customers’ deposits) decreased by 8% YOY to reach $72.35B by February 2023, additionally deposits in LBP (3.54% of resident customers’ deposits) fell by 89.08% YOY to stand at $2.65B by February 2023. Noting that Lebanon has become dollarized and cash based.

As for Non-resident customers’ deposits, grasping 18.67% of total liabilities, they recorded a drop of 11.37% and stood at $21.47B in February 2023. In details, the deposits in LBP fell by 89.81% to reach $202M and deposits in foreign currencies declined by 4.37% to reach $21.26B over the same period. More importantly, the dollarization ratio for private sector deposits increased from 79.05% in February 2022 to 96.92% in February 2023. In addition, Non-resident financial sector Liabilities held 2.88% of total Liabilities and decreased by 30.99% YOY to reach $3.32B in February 2023.

Commercial Banks Assets and Residents Customer Deposits by February 2023 ($B)

Lebanese Commercial Banks’ Total Assets Down Year on Year by 33.8% to $115B by February 2023


 Disclaimer :

This article is a research document that is owned and published by Blominvest Bank SAL.

No material from this publication may be modified, copied, reproduced, repackaged, republished, circulated, transmitted or redistributed directly or indirectly, in whole or in any part, without the prior written authorization of Blominvest Bank SAL.

The information and opinions contained in this document have been compiled from or arrived at in good faith from sources deemed reliable. Neither Blominvest Bank SAL, nor any of its subsidiaries or affiliates or parent company will make any representation or warranty to the accuracy or completeness of the information contained herein.

Neither the information nor any opinion expressed in this research article constitutes an offer or a recommendation to buy or sell any assets or securities, or to provide investment advice.

This research article is prepared for general circulation and is circulated for general information only.

Leave a Reply

Your email address will not be published. Required fields are marked *