Banks in Syria see profits rise

Syrian affiliates of Lebanese banks see 13 percent drop in assets compared to end-2010

The combined assets of the affiliates of seven Lebanese banks operating in Syria totaled $7.1 billion at the end of September. The aggregate assets of the financial institutions dropped by 13 percent compared to the end of 2010.

The decline in the total assets was mainly driven by an average drop of around 24 percent in the assets of the three largest private commercial banks by assets: Banque BEMO Saudi Fransi, Bank of Syria & Overseas, and Bank Audi Syria.

The net profits of the seven banks reached $35.6 million in the first nine months of 2011, a 21 percent increase from the same period last year.

The aggregate loans (of the seven banks) totaled $3 billion at end September, down by two percent from the end of 2010. This decline was mainly caused by an average contraction of 21 percent in the lending of Bank of Syria & Overseas and Bank Audi Syria.

The customer deposits of the seven banks reached $5.4 billion at the end of September, down by 21 percent from end-2010. The drop was driven by an average contraction of 29 percent in the deposits of Banque BEMO Saudi Fransi, Bank of Syria & Overseas, and Bank Audi Syria. The deposits of each of Banque BEMO Saudi Fransi, and Bank Audi Syria decreased by around 31 percent, while those of Bank of Syria & Overseas were down by 25 percent. The deposits of Fransabank Syria were almost unchanged with a slight drop of 1.2 percent.

Conversely, Bank Al-Sharq (affiliate of Banque Libano-Française) saw a deposit growth of 53 percent, followed by Syria Gulf Bank with a 27 percent rise. The deposits of Byblos Bank Syria were also up by six percent.