Economic Research | Lebanon This Week | Lebanon This Week 545 | Nine Lebanese banks among Top 1000 banks in the world | Lebanon | Byblos Bank

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Byblos Bank

Lebanon This Week 545

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Nine Lebanese banks among Top 1000 banks in the world

In its 2018 survey of the Top 1000 banks in the world, The Banker magazine included nine Lebanese commercial banks on its list, down from 10 banks in the 2017 survey. None of the nine Lebanese banks ranked among the top 25 banks in the Middle East in the 2018 survey, in line with previous surveys. The rankings are based on the banks' Tier One capital in US dollars at year-end 2017. The Banker uses the disclosed Tier One capital for banks that began implementing the Basel III framework, as the latter clarified the rules about capital calculations that previously varied across banks and jurisdictions.

The aggregate Tier One capital of the nine Lebanese banks reached $15.12bn at the end of 2017 and grew by 6.1% from $14.26bn at end-2016. In comparison, the Tier One capital of the Top 1000 banks increased by 11.7% year-on-year, while that of banks in the Middle East rose by 6.2%. Byblos Bank's Tier One capital-to-assets ratio was 7.45% at the end of 2017, outperforming the Top 1000 banks' aggregate ratio of 6.7%. In addition, Byblos Bank's Capital Adequacy Ratio (CAR), a measure of the Bank's financial strength, reached 17.8% at the end of 2017, the second highest such ratio among Lebanese banks included in the 2018 survey and compared to the average CAR of 16.5% of the eight Lebanese banks with available CAR figures.

Further, the cumulative pre-tax profits of the nine Lebanese banks reached $2.54bn in 2017, down by 3.4% from $2.62bn the preceding year, compared to a rise of 15.6% in the gross earnings of the Top 1000 banks and an increase of 5.3% in the pre-tax income for banks in the Middle East. Also, the ratio of pre-tax profits-to-Tier One capital of the Lebanese banks reached 16.8% in 2017, down from 18.4% a year earlier, and relative to 13.5% for the Top 1000 banks and 13% for banks in the Middle East. 
 
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