BLF and the GTFP October 23, 2008


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BLF and the GTFP October 23, 2008

  1. 1. <ul><li>BLF and the GTFP </li></ul><ul><li>October 23, 2008 </li></ul><ul><li>Paris, France </li></ul><ul><li>Maurice Iskandar </li></ul><ul><li>Head of International </li></ul><ul><li>Banque Libano-Française </li></ul>
  2. 2. Contents <ul><li>Briefing: Lebanese banking sector </li></ul><ul><li>BLF - An overview </li></ul><ul><li>BLF – Key figures </li></ul><ul><li>BLF Group - Trade finance statistics </li></ul><ul><li>BLF and the GTFP </li></ul>
  3. 3. Lebanese Banking Sector, July 2008 <ul><li>55 commercial banks, 12 investment banks and 16 representative offices of foreign banks </li></ul><ul><li>Total Assets USD 90.7 bln, as at August 08. 10.2% increase since end of 2007 (up from USD 82.3 bln) </li></ul><ul><li>Total Deposits USD 76.4 bln, as at August 08. 11.8% increase since end of 2007 (up from USD 68.3 bln) 75% of deposits are in USD </li></ul><ul><li>Equity of banks USD 6.6 bln, as at August 08. 5% increase since end of 2007 (up from USD 6.3 bln) </li></ul><ul><li>GDP of Lebanon stood at USD 24.6 bln at the end of 2007 (1/3 of the banking sector size) </li></ul>
  4. 4. BLF – An Overview <ul><li>1930 Branch of the French bank Compagnie Algérienne de Crédit et de Banque </li></ul><ul><li>1967 Established as a bank under Lebanese law, with 72% French shareholding </li></ul><ul><li>1970 Banque Indosuez acquires 5% direct interest in BLF capital </li></ul><ul><li>1976 Established a subsidiary in Paris, Banque Libano-Française (France) which became in 1989 Banque Française de l’Orient SA </li></ul><ul><li>1992 Banque Indosuez increases shareholding in BLF to 51% </li></ul><ul><li>1996 Crédit Agricole acquires Banque Indosuez (now CALYON) </li></ul><ul><li>2004 CALYON reduces its participation from 51% to 9% </li></ul><ul><li>2006 Successful issue of USD 100 million preferred shares </li></ul><ul><li>2006 Acquisition of 78.3% of Banque SBA established in Paris, with a branch in Limassol, a branch in Damascus Free Zone, a financial subsidiary in Geneva </li></ul><ul><li>2007 Obtained approval of the Syrian authorities to establish Bank Al-Sharq (operations to be launched prior to end 2008) </li></ul><ul><li>2008 Applied for a representative office license in Abu Dhabi </li></ul>
  5. 5. BLF – Key Figures 1/2 <ul><li>High level of liquidity in foreign currencies (USD 1.5 bln) placed with major international correspondents in addition to liquid deposits with the Central Bank of Lebanon </li></ul><ul><li>Lowest exposure among peers to Lebanese government risk denominated in foreign currency (less than 5% of deposits in foreign currencies) </li></ul><ul><li>Total Consolidated Assets for half year 2008 reached USD 6.2 bln showing a 3.3% increase since end of 2007 (up from USD 6 bln) </li></ul>
  6. 6. BLF – Key Figures 2/2 <ul><li>Total Deposits for half year 2008 reached USD 5.1 bln showing a 2.6% increase since end of 2007 (up from USD 5 bln) 75% of deposits are in foreign currency </li></ul><ul><li>Total equity of USD 480 mln which is one of the highest in the sector leading to a CAR of 19% </li></ul><ul><li>Numerous agreements signed with regional and international institutions such as the International Finance Corporation (IFC), Overseas Private Investment Corporation (OPIC), European Investment Bank (EIB), Agence Française de Développement (AFD) , Arab Trade Finance Program (ATFP) among others </li></ul>
  7. 7. BLF Group – Trade Finance Statistics <ul><li>BLF holds a leadership position in Trade Finance in Lebanon, </li></ul><ul><li>with strong technical expertise (ranked 3 rd in total L/C openings) </li></ul>
  8. 8. BLF Group – Trade Finance Statistics Banque SBA is the most active Lebanese-owned bank in France in Trade Finance
  9. 9. BLF and the GTFP <ul><li>BLF / IFC partnership goes back to 1996 long before the GTFP launch </li></ul><ul><li>October 2005, BLF joined the GTFP as issuing bank. BLF was the second bank worldwide to become part of the program </li></ul><ul><li>In 2006, BLF joins the GTFP as confirming bank </li></ul><ul><li>June 2007, IFC awarded “Best Use of GTFP Network by an Issuing Bank” to BLF </li></ul><ul><li>Total transactions done by BLF under GTFP is USD 131 mln (104 transactions). Transactions include confirmation of: </li></ul><ul><ul><ul><li>LCs </li></ul></ul></ul><ul><ul><ul><li>Bid Bonds </li></ul></ul></ul><ul><ul><ul><li>Performance Bonds </li></ul></ul></ul><ul><ul><ul><li>Advance Payment Guarantees </li></ul></ul></ul><ul><ul><ul><li>Financial Guarantees </li></ul></ul></ul><ul><li>Countries where BLF used GTFP include Australia, Saudi Arabia, UAE, Qatar, France, Japan, Greece, Turkey, etc. </li></ul>