Bank Audi Publishes its Audited Consolidated Financial Results for End 2020

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