Lebanese bank assets rise 7.8% y/y to USD 166bn at end-February 2014

By bne IntelliNews April 24, 2014

Lebanon’s banking sector total assets grew 7.8% y/y and 1.0% m/m to LBP 250.3tn (USD 166bn) at end-February 2014, data from the association of banks in Lebanon showed. Despite all odds, the Lebanese banking sector continues to be the key supporter of the country’s creditworthiness and sovereign ratings amid the political and security turmoil.

In April, Standard & Poor's revised its outlook on Lebanon to stable from negative on strong banking sector’s financials and stabilising political situation following the formation of a new government. The banking sector is also the main subscriber to domestic debt issuances, meaning total assets will grow further in 2014.

Total bank deposits, including resident and non-resident private sector deposits and public sector deposits, increased 7.7% to LBP 209.3tn at end-February, accounting for 83.6% of total assets.

LBP-denominated private-sector deposits rose 1.4% ytd to end-February, whereas those denominated in foreign currencies fell 1.3% ytd. The deposit dollarization rate, thus, declined to 65.5% from 66.1% at end-2013. The dollarization rate might ease further in H1 as the government was formed and rival political parties seek to curb violent tensions and boost confidence. The resident private sector deposits accounted for 78.1% of total deposits at end-February, whereas those of the non-resident sector equalled 19.7%.

Related Articles

UAE to buy major stakes in Kazakh special economic zones

The United Arab Emirates’ (UAE’s) global port operator Dubai Ports World on March 24 signed two framework agreements to acquire stakes in Kazakhstan’s two Special Economic ... more

Survival of Iran nuclear deal appears far less likely under US Secretary of State Mike Pompeo

The odds on the Trump administration attempting to kill the Iran nuclear deal substantially shortened on March 13 with the firing-by-tweet of US Secretary of State Rex Tillerson and his replacement ... more

Billion-dollar petrochemical facility to be built in Turkey by Algeria's Sonatrach

Algerian national energy company Sonatrach has struck a deal with Turkey's Ronesans and Bayegan to build a petrochemical plant worth $1bn in Turkey, Turkish President Recep Tayyip Erdogan said on ... more

Dismiss