BQAD.L Regulatory News (BQAD)

Consolidated Balance Sheet as at December 31, 2007

(LL Millions)

ASSETS

2007

2006

LL

C/V LL

TOTAL

LL

C/V LL

TOTAL

Cash and Central Banks 

2,491,303 

4,396,795 

6,888,098 

2,340,602 

3,173,873 

5,514,475 

 - Cash

33,716 

106,320 

140,036 

25,592 

65,936 

91,528 

 - Credit risk ceded

210,748 

210,748 

212,288 

212,288 

 - Net Exposure

2,457,587 

4,079,727 

6,537,314 

2,315,010 

2,895,649 

5,210,659 

Lebanese Treasury bills and other government bills 

1,047,299 

2,968,676 

4,015,975 

1,127,695 

3,096,712 

4,224,407 

 - Credit risk ceded

403,644 

403,644 

478,843 

478,843 

 - Net Exposure

1,047,299 

2,565,032 

3,612,331 

1,127,695 

2,617,869 

3,745,564 

Bonds and financial instruments with fixed income

1,153,667 

1,153,667 

679,236 

679,236 

Shares, securities and financial assets with variable income

8,018 

313,085 

321,103 

8,199 

221,013 

229,212 

Banks and financial institutions

102,899 

4,796,920 

4,899,819 

71,912 

4,780,173 

4,852,085 

- Current accounts

16,447 

883,028 

899,475 

14,833 

598,998 

613,831 

- Time deposits

86,452 

3,913,892 

4,000,344 

57,079 

4,181,175 

4,238,254 

- Purchase of financial instruments with an option to resell

Due from Head office, branches and affiliates

- Current accounts

- Time deposits

Loans and advances to customers 

312,716 

7,371,916 

7,684,632 

239,287 

4,637,795 

4,877,082 

- Commercial loans*

122,127 

6,111,026 

6,233,153 

104,657 

3,856,559 

3,961,216 

- Other loans to customers*

144,376 

947,291 

1,091,667 

108,515 

489,713 

598,228 

- Overdraft accounts

2,293 

28,505 

30,798 

2,586 

12,099 

14,685 

- Net debtor accounts against creditor and cash collateral accounts

1,009 

1,009 

775 

775 

- Advances to related parties 

53,122 

215,156 

268,278 

47,668 

190,822 

238,490 

- Doubtful loans**

(9,202)

68,929 

59,727 

(24,139)

87,827 

63,688 

Bank acceptances

198,288 

198,288 

136,994 

136,994 

Investments and related loans

Investments and related loans under equity method

4,563 

18,067 

22,630 

4,359 

17,023 

21,382 

-Non financial institutions

4,563 

18,067 

22,630 

4,359 

17,023 

21,382 

- Financial institutions

Tangible fixed assets (including revaluation variance approved by the Central Bank)

266,562 

229,353 

495,915 

278,985 

172,236 

451,221 

Intangible fixed assets

5,936 

7,566 

13,502 

5,828 

6,383 

12,211 

Other assets

2,531 

845 

3,376 

1,391 

570 

1,961 

Regularization accounts and other debtor accounts

36,570 

158,919 

195,489 

35,343 

101,776 

137,119 

Revaluation variance on other fixed assets

Goodwill

35,551 

179,581 

215,132 

33,838 

182,523 

216,361 

TOTAL ASSETS**

4,313,948 

21,793,678 

26,107,626 

4,147,439 

17,206,307 

21,353,746 

*Out of which sub-standard loans amounting to :

24,830 

29,244 

**After deduction of provision for doubtful loans

174,673 

165,469 

and unrealised interest:

*For sub-standard loans

4,872 

5,599 

**For doubtful loans

83,242 

68,729 

Off-Balance Sheet Items

Financing commitments received

Signature commitments received

24,290 

147,853 

172,143 

21,105 

103,782 

124,887 

Financial instruments sold with a buy back option

Engagements on term financial instruments

130,894 

130,894 

388,317 

388,317 

- Option on forex swap

130,894 

130,894 

388,317 

388,317 

Commitments on derivatives

16,882 

16,882 

Other engagements received

232,152 

3,304,904 

3,537,056 

182,309 

2,107,942 

2,290,251 

Fiduciary assets and Assets under management

6,784 

5,414,053 

5,420,837 

6,859 

4,257,647 

4,264,506 

Custody accounts

935,318 

3,010,351 

3,945,669 

603,742 

2,551,443 

3,155,185 

Forward operations:

1,705,167 

1,705,167 

774,468 

774,468 

-Foreign currencies to receive

1,705,167 

1,705,167 

774,468 

774,468 

Bad debts transferred to off balance sheet items

28,748 

253,292 

282,040 

26,404 

242,826 

269,230 

Consolidated Balance Sheet as at December 31, 2007

(LL Millions)

LIABILITIES

2007

2006

LL

C/V LL

TOTAL

LL

C/V LL

TOTAL

Central Bank 

27,702 

27,702 

Banks and financial institutions

60,360 

895,716 

956,076 

3,570 

281,745 

285,315 

- Current accounts

5,984 

531,520 

537,504 

2,408 

182,333 

184,741 

- Time deposits

54,376 

364,196 

418,572 

1,162 

99,412 

100,574 

- Sale of financial instruments with an option to rebuy

Due to Head office, branches and affiliates

- Current accounts

- Time deposits

Deposits from customers

3,195,235 

18,360,670 

21,555,905 

3,148,359 

14,711,186 

17,859,545 

- Sight deposits

277,403 

2,672,280 

2,949,683 

241,704 

1,933,095 

2,174,799 

- Time deposits

643,416 

9,057,120 

9,700,536 

675,609 

6,557,271 

7,232,880 

- Savings accounts

2,224,356 

5,385,411 

7,609,767 

2,196,263 

4,596,671 

6,792,934 

- Net creditor and cash collateral accounts against debtor accounts

45,213 

858,609 

903,822 

29,991 

716,550 

746,541 

- Related parties accounts 

4,847 

387,250 

392,097 

4,792 

907,599 

912,391 

Engagements by acceptances

198,288 

198,288 

136,994 

136,994 

Liabilities under financial instruments 

153,148 

153,148 

153,148 

153,148 

- Certificates of deposit

153,148 

153,148 

153,148 

153,148 

- Debenture bonds

- Other liabilities under financial instruments

Other liabilities

191,776 

156,257 

348,033 

140,025 

87,990 

228,015 

Regularization accounts and other creditor accounts

37,559 

69,155 

106,714 

10,786 

55,797 

66,583 

Provisions for risks and charges

26,134 

14,071 

40,205 

23,621 

12,113 

35,734 

Subordinated notes

Shareholders' equity

1,043,499 

1,705,758 

2,749,257 

912,672 

1,648,038 

2,560,710 

-Revaluation variance accepted in the supplementary capital

18,600 

18,600 

18,600 

18,600 

-Share capital & cash contribution to capital

422,190 

179,158 

601,348 

404,945 

172,372 

577,317 

- Group share

419,675 

72,586 

492,261 

404,162 

72,586 

476,748 

Ordinary shares 32.902.309

Preferred shares 5.250.000

- Minority share

2,515 

106,572 

109,087 

783 

99,786 

100,569 

-Reserves for general banking risks 

32,299 

69,360 

101,659 

26,896 

54,079 

80,975 

- Group share

32,299 

69,360 

101,659 

26,885 

54,044 

80,929 

- Minority share

11 

35 

46 

-Reserves and premiums and equity differences

309,227 

1,218,695 

1,527,922 

221,467 

1,305,918 

1,527,385 

- Group share

306,891 

1,222,917 

1,529,808 

219,339 

1,307,258 

1,526,597 

- Minority share

2,336 

(4,222)

(1,886)

2,128 

(1,340)

788 

-Employees' stock option plan as per IFRS 2

32,072 

32,072 

17,927 

17,927 

-Less: Treasury GDR's

(147)

(1,384)

(1,531)

(1,239)

(10,524)

(11,763)

-Profit carried forward

15,822 

42,215 

58,037 

5,347 

27,981 

33,328 

- Group share

15,767 

40,538 

56,305 

5,310 

26,618 

31,928 

- Minority share

55 

1,677 

1,732 

37 

1,363 

1,400 

-Net income for the year

226,866 

75,043 

301,909 

213,736 

33,679 

247,415 

- Group share

225,975 

63,709 

289,684 

212,678 

33,892 

246,570 

- Minority share

891 

11,334 

12,225 

1,058 

(213)

845 

-Cumulative changes in fair value

18,642 

90,599 

109,241 

22,920 

46,606 

69,526 

Revaluation variance of fixed assets

Income and expense accounts

Total Liabilities & Shareholders' Equity

4,554,563 

21,553,063 

26,107,626 

4,266,735 

17,087,011 

21,353,746 

Off-Balance Sheet Items

Financing commitments given to:

468,751 

468,751 

225,995 

225,995 

- Financial intermediaries

468,751 

468,751 

225,995 

225,995 

- Customers

Bank guarantees given to:

39,184 

1,150,236 

1,189,420 

36,577 

837,522 

874,099 

- Financial intermediaries

3,357 

227,142 

230,499 

1,038 

228,717 

229,755 

- Customers

35,827 

923,094 

958,921 

35,539 

608,805 

644,344 

Financial instruments purchased with a buy back option

Other engagements

Engagements on term financial instruments

29,454 

29,454 

Commitment credit line

390,751 

390,751 

261,009 

261,009 

Currency options

446,518 

446,518 

Fiduciary Deposits and Assets under management

8,600 

5,412,237 

5,420,837 

8,533 

4,255,973 

4,264,506 

Custody accounts

935,226 

3,010,443 

3,945,669 

603,742 

2,551,443 

3,155,185 

Forward operations

1,706,867 

1,706,867 

774,254 

774,254 

-Foreign currencies to deliver

1,706,867 

1,706,867 

774,254 

774,254 

Consolidated Income Statement 

(LL Millions)

31/12/2007

31/12/2006

Interest and similar income

1,525,548 

1,248,216 

Lebanese Treasury bills and other government bills

345,861 

297,779 

Deposits and similar accounts in banks and financial institutions

665,741 

580,089 

Deposits in head office, branches and affiliates

Bonds and financial instruments with fixed income

59,082 

57,519 

Loans and advances to customers

429,388 

296,923 

Loans and advances to related parties

17,958 

13,577 

Other interest and similar income

7,518 

2,329 

Interest on leasing contracts

Interest expense and similar charges 

1,004,997 

809,810 

Deposits and similar accounts from banks and financial institutions

12,262 

16,172 

Deposits from head office, branches and affiliates

Deposits from customers and other creditor accounts

955,591 

758,104 

Deposits from related parties

18,852 

18,199 

Cash contribution to capital and subordinated loans

Certificates of deposit

16,206 

16,206 

Bonds and financial instruments with fixed income

Other interest and similar charges

2,086 

1,129 

Interest on leasing contracts

Net provisions and recoveries on doubtful loans

3,957 

24,670 

Provisions for doubtful loans

26,990 

41,756 

Of which: provision setup related to commercial loans(granted by leasing companies)

Recoveries of provisions for doubtful loans

(23,033)

(17,086)

Of which: provision write-back related to commercial loans(granted by leasing companies)

Of which: provision write-back related to leasing contracts

Provision related to leasing contracts

Net interest income

516,594 

413,736 

Revenues from shares, securities & financial assets with variable income

10,642 

12,759 

Net commissions 

160,249 

105,975 

Commissions received

192,109 

142,159 

Of which: commission related to leasing contracts

Commissions paid

(31,860)

(36,184)

Of which: commission related to leasing contracts

Profit on financial operations

138,946 

150,196 

Profit on marketable securities

22,274 

27,947 

Profit on financial fixed assets

121 

5,241 

Profit on foreign exchange position

30,888 

27,064 

Profit on financial instruments

85,663 

89,944 

Loss on financial operations 

41,038 

26,233 

Loss on marketable securities

1,006 

2,053 

Loss on financial fixed assets

505 

424 

Loss on foreign exchange position

14,259 

9,341 

Loss on financial instruments

25,268 

14,415 

Net income from financial operations

97,908 

123,963 

Other operating income

31,067 

19,937 

Other operating expenses

10,096 

7,830 

Total operating income

806,364 

668,540 

General and administrative expenses

417,524 

317,812 

Salaries wages and related charges

236,151 

173,373 

Employees' stock options expense as per IFRS 2

17,479 

17,927 

General operating expenses

163,894 

126,512 

Depreciation and amortization

31,845 

34,537 

Provisions on investments 

1,681 

(6,418)

Provisions on contingent accounts & other risks

6,051 

(632)

Profit from operations before taxation 

364,727 

309,141 

Net nonrecurring operations

(859)

(12,167)

Nonrecurring income

5,305 

1,193 

Nonrecurring expenses

(6,164)

(13,360)

Income tax

63,025 

50,300 

Our part in affiliates under equity method

1,066 

741 

Non financial institutions

1,066 

741 

Financial institutions

Net profit for the year

301,909 

247,415 

Group share

289,684 

246,570 

Minority share

12,225 

845 

Consolidated cash flow statement

Year ended 31 December 2007

2007

2006

LL millions

LL millions

OPERATING ACTIVITIES

Profit before tax

352,709 

296,870 

Adjustments for:

Depreciation and amortisation

31,705 

29,661 

Provision for fixed assets acquired in settlement of debt

140 

4,876 

Provision for risks and charges

2,482 

5,239 

Provision for impairment of participations

647 

3,445 

Net gain on financial instruments

(81,280)

(106,241)

Gain on investments under equity method

(1,066)

(741)

(Gain) loss on sale of properties acquired in settlement of debt

(440)

137 

Write back of provision for risks and charges

(6,268)

(536)

Provision for employees' end of service benefits

6,124 

3,502 

Provisions for doubtful loans 

26,990 

41,756 

Recoveries of provision for doubtful loans

(23,033)

(17,085)

Employees' share - based payments

17,479 

17,927 

Operating profit before changes in operating assets and liabilities

326,189 

278,810 

Deposits with the Central Banks, banks and financial institutions maturing in more than 3 months

(1,214,335)

209,474 

Loans and advances to customers

(2,805,205)

(1,193,633)

Lebanese Treasury bills - trading

205,046 

(386,135)

Bonds and financial assets with fixed income - trading

(158,020)

35,203 

Shares, securities and financial assets with variable income - trading

(6,497)

(10,610)

Other assets

(1,415)

(968)

Regularization and other debit accounts

(39,905)

26,170 

Customers' deposits

3,696,359 

2,952,603 

Other liabilities

109,629 

38,694 

Regularization and other credit accounts

40,131 

19,710 

Minority interest

17,510 

63,571 

Cash from operations

169,487 

2,032,889 

Employees' end of service benefits (paid) recovered 

(2,944)

(831)

Taxation paid

(47,861)

(29,366)

Provisions for contingencies and charges paid

(23)

(72)

Net cash from operating activities

118,659 

2,002,620 

INVESTING ACTIVITIES

Bank of Lebanon certificates of deposit - other than trading

485,337 

(92,459)

Lebanese treasury bills - other than trading

21,711 

(471,911)

Bonds and financial assets with fixed income - other than trading

(315,157)

29,174 

Shares, securities and financial assets with variable income - other than trading

(8,693)

(83)

Option premium paid 

(16,755)

-

Purchase of tangible and intangible fixed assets

(91,371)

(101,128)

Investments and related loans under equity method

(182)

(13,489)

Proceeds from sale of properties acquired in settlement debt

19,648 

7,651 

Cost of business combinations

-

(148,833)

Net cash from (used in) investing activities

94,538 

(791,078)

FINANCING ACTIVITIES

Redemption of preferred shares class A

(90,450)

-

Settlement of BDL soft loan

(27,702)

(24)

Increase in share capital

15,513 

100,000 

Issue premium on capital increase

6,196 

804,208 

Treasury GDR transactions

10,324 

(8,417)

Distribution of dividends

(125,090)

(79,293)

Net cash (used in) from financing activities

(211,209)

816,474 

INCREASE IN CASH AND CASH EQUIVALENTS

1,988 

2,028,016 

Net foreign exchange difference

4,969 

10,250 

Cash and cash equivalents at 1 January 

5,965,955 

3,927,689 

CASH AND CASH EQUIVALENTS AT 31 DECEMBER

5,972,912 

5,965,955 

Operational cash flows from interest and dividends 

Interest received 

1,397,476 

1,098,879 

Interest paid

(1,032,123)

(820,493)

Dividends received

10,642 

12,759