BQAD.L Regulatory News (BQAD)

2 May 2006 07:01

Bank Audi SAL- Audi Saradar Group02 May 2006 PRESS RELEASE CONSOLIDATED ACTIVITY AT END-MARCH 2006 - Total footings of US$ 16.5 billion - Total assets of US$ 12.2 billion - Customers' deposits of US$ 10.1 billion - Net profits for the first quarter of US$ 36.5 million LL billion Mar-05 Mar-06 Change Growth Assets 15,836.15 18,367.32 2,531.18 15.98% Deposits 12,828.68 15,153.39 2,324.71 18.12% Fiduciary deposits, security accounts and assets under management 5,157.49 6,570.09 1,412.59 27.39% Assets fiduciary deposits, security accounts and assets under management 20,993.64 24,937.41 3,943.77 18.79% Shareholders' equity 1,029.71 1,448.61 418.90 40.68% Net profits 27.45 55.05 27.60 100.53% Consolidated unaudited net profits of Bank Audi sal - Audi Saradar Group reachedLL 55.1 billion in the first quarter of 2006 (US$ 36.5 million), growing by12.6% relative to the fourth quarter of 2005 and by 37.3% relative to thequarterly average of 2005. The strong grip over the bank's operating conditions,in addition to a growth in assets higher than the average of the sector liebehind these performances. The Bank registered a growth in its assets of 16% relative to March 2005. Assetsreached US$ 12.2 billion, and rose to US$ 16.5 billion when including fiduciarydeposits, security accounts and assets under management. The growth in assets was mainly driven by customers' deposits which grew by18.1% in March 2006 relative to March 2005, i.e. the equivalent of LL 2,325billion (US$ 1.5 billion). In fact, the Bank's customer deposits rose from LL12,829 billion in March 2005 to LL 15,153 billion in March 2006. Thisperformance is even more important when considering that it was realized at acost of deposits below that of peers. At end-March 2006, the Bank's shareholders equity amounted to LL 1,449 billion(US$ 961 million), one of the most elevated capitalization levels in the sector.The verification of the Extraordinary General Assembly of April 28th, 2006 ofthe conformity of the procedures of the bank's capital increase and the paymentof its amount raises shareholders' equity to US$ 1.57 billion, the equivalent ofmore than 30% of the consolidated equity of the Lebanese banking sector. As a result of these exceptional performances, Bank Audi ranks among the first25 Arab banking groups according to the most important criteria such as assets,deposits, shareholders' equity and net profits. The growth in assets and net profits reinforces the financial standing of theGroup. As such, the ratio of global liquidity reached 88.8% of customerdeposits. Primary liquidity in foreign currency (cash and deposits in banks,eurobonds excluded) reached US$ 4.4 billion, the equivalent of 58.6% of foreigncurrency deposits. The exposure over sovereign bonds in foreign currency droppedto 1.26 times shareholders' equity. When adjusting for the recent capitalincrease, it reaches 0.78 times shareholders' equity, the lowest level amonglarge Lebanese banks. At the level of asset quality, the share of net doubtfulloans to gross loans amounted to 1.1%, bearing witness to the permanent effortsto improve the quality of assets. The permanent enhancement of retail banking, private banking and corporatebanking activities, in addition to the restructuring of European subsidiariesand the regional expansion, ensure henceforth a more even distribution of netfinancial income over interest margin and non interest income. In fact, thelatter reaches 40.1% of net financial income, a level superior to that of thesector. The domestic performances of the Bank represent a prerequisite for theconsolidation of its regional positioning within its strategy to integrate in aforeseeable horizon the restricted group of large regional banks. Alreadypresent in Lebanon, France and Switzerland, the Bank has recently completed itsimplementation in Syria, Jordan and Egypt, and hopes to launch by the end of2006 its activities in the North of Iraq and in Saudi Arabia. In addition, theprospection for new high potential regional markets is underway, with plausibleperspectives in Algeria, Sudan and Yemen. Beirut, April 28th, 2006 This information is provided by RNS The company news service from the London Stock Exchange