Alpha banks’ assets surge

Rise due to growth in private credit and
banks’ deposits with the Central Bank

Consolidated total assets of Alpha banks, that include the 12 largest banks in the country, grew by 8.4 percent year-on-year to reach $146.7 billion at end June this year, according to the latest report by Bankdata.

This increase was mainly driven by a 52 percent surge in deposits with the Central Bank that reached $28 billion. These deposits include both mandatory and optional deposits, cash and certificates of deposits (CDs), said Marwan Mikhail, head of research at Blominvest Bank. “The Central bank pays more on CDs than banks get on Treasury Bills,” he said.

“There are three main items that constitute bank assets: customer credit, banks’ holdings in T-Bills and Eurobonds, and their deposits with the Central Bank. Credit to the private sector has also gone up in the first six months, not so much T-bills and bonds,” said Mikhail.

He said Alpha banks have reduced their deposits with other banks and financial institutions, outside and inside the country, and put that money at BDL.

Alpha banks’ net loans and advances to customers rose by 12.6 percent in the same period to reach $41 billion. Customer deposits grew by 8.6 percent to reach $120 billion.

Consolidated net profits reached $836 million in the first six months, up by 7.6 percent, compared to the same period last year. Net interest income drove profits up as it climbed by a yearly 13 percent to $1.3 billion.

BankMed led the group in terms of asset growth which grew by 11.8 percent from the beginning of the year to reach $13.2 billion, followed by assets of First National Bank which grew by 10.3 percent to reach $3.1 billion.

IBL Bank topped the group for growth in loans and advances to customers which increased year-to-date by 30 percent to reach $828 million by end June. Bank Audi, BLOM Bank, and Byblos Bank remained the market leaders in terms of total assets, accounting for 47 percent of total consolidated assets.