Crédit Libanais eyes expansion abroad

Capital increased by $100 million

Crédit Libanais, one of the top ten local banks, announced that it increased its Tier One capital by 18.28 percent. This increase came as a result of issuing preferred shares for a total of $100 million.

“Increasing the Tier One capital aims at enhancing the bank’s liquidity and its position as a leading bank,” said Sami Nseiri, Advisor to the Chairman of Crédit Libanais. The bank’s liquidity adequacy ratio stands at 15 percent after the capital increase, exceeding the Basel III requirements set by the Central Bank (BDL).

Nseiri said that Crédit Libanais will use its capital increase to expand its presence abroad, mainly in Africa and the Arab world. He said the bank hasn’t decided on its first destination yet.

Crédit Libanais is currently present in five countries abroad, including Bahrain, Canada, Cyprus, Iraq, and Senegal. “Our performance is still very strong in Lebanon despite all political and security problems, but if things get worse, the bank will take into consideration expanding its presence abroad to compensate any slowdown in the local market,» said Nseiri.

Crédit Libanais posted unaudited consolidated net profits of around $34 million in the first half of 2013, a 4.8 percent decrease compared to the same period of 2012. Total assets reached $8 billion, up by 1.5 percent year-on-year, while loans and advances to customers increased by more that 14 percent to $2.4 billion. Deposits reached $6.7 billion, growing by seven percent.