Bank deposits top $150 billion

Inflows boosted by Diaspora, resilient banks

Lebanon had the fourth highest deposits rate among the Arab MENA countries in 2012. Deposits reached more than $150 billion, up by more than 12 percent over 2011, according to the Bilan Banques report published by Bankdata Financial Services in collaboration with the Association of Banks in Lebanon (ABL).

Saudi Arabia (KSA) had the highest amount of deposits with $336 billion, followed by the United Arab Emirates (UAE) with $318 billion, and Egypt with $171 billion.

Lebanon’s deposit base accounts for more than three times its GDP, one of the highest ratios in the region and in emerging markets. According to Marwan Barakat, Assistant General Manager, Group Chief Economist and Head of Research at Bank Audi, deposits have seen an average yearly growth of 16 percent over the past two decades.

Barakat said regular inward remittance flows represent around 20 percent of GDP per annum.

“International reports acknowledge the outstanding resilience of Lebanon’s banking industry in general and its sticky deposit base in particular, even amidst domestic and external shocks,” said Barakat.

According to him, forecasts for 2013 are similar to the performance of the past couple of years. Deposit growth up to July 2013 reported an annual rate of eight percent.

On the assets level, the country was ranked fifth with more than $181 billion, according to the Bilan Banques report. Loans reached around $54 billion, up by 5.6 percent, putting Lebanon in seventh place.