July 31, 2015 ECONOMY. Lebanon ranks 19 th worldwide and 2 nd in the Arab world in gold holdings

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1 ECONOMY Lebanon ranks 19 th worldwide and 2 nd in the Arab world in gold holdings Lebanon s gold reserves reached 287 tons, accounting for 21% of the country s total foreign reserves. The July 2015 edition of the World Gold Council s World Official Gold Holdings report ranked Lebanon in 19 th position among 100 countries and in 2 nd position among 14 Arab countries in the level of gold holdings, which remain stable from last year on both bases. Lebanon maintained its level of gold holdings at 287 tons of gold, accounting for a 21% share of total reserves. Globally, Lebanon was surpassed by the United Kingdom (18 th position) and Venezuela (16 th ), and it preceded Spain (20 th ) and Austria (21 st ). Regionally, Lebanon came second after Saudi Arabia (17 th position globally). The data presented in the report are taken from the IMF s International Financial Statistics (IFS), July 2015 edition. The data represents holdings as of May 2015 for most countries and April 2015 or earlier for late reporters. The value of gold holdings is calculated using the end of month London PM fix gold price published daily by The London Gold Market Fixing Ltd. In May 2015, the end of month gold price was USD 1, Arab Ranking Source: World Gold Council, Bankmed Research Gold Holdings July 2015 World Ranking % of reserves * Tons Saudi Arabia % Lebanon % Algeria % Libya % Iraq % Kuwait % Egypt % Jordan % Syria % Morocco % Qatar % Tunisia % Bahrain % Yemen % *The percentage share held in gold of the country s total foreign reserves, as calculated by the World Gold Council. Bankmed - Market & Economic Research Division 1

2 ECONOMY Property sales transactions drop in the first half of 2015 The average value per real estate transaction reached USD 124,904 in the first six months of All regions show a lower number in sales transactions, with Beirut reporting the largest decline by 31%. The latest figures released by the Directorate of Real Estate and Cadastre revealed that the value of property sales transactions reached USD 3,588 million in January-June 2015, constituting a decrease of 20% from USD 4,484 million registered in the same months last year. This downward trend in value was coupled by that of volume with a drop in the number of sales transactions by 15.6% annually to reach 28,722 in January-June Further, the average value per real estate transaction reached USD 124,904 compared to USD 131,879 in the same months of the previous year. In parallel, all regions reported yearly declines in the number of property sales, with Beirut reporting the largest decline by 27%, followed by Baabda with 23%, and Kesserwan with 18%. In terms of transactions value by region, all regions edged down in January-June 2015, with Beirut reporting the largest drop by 31.4%. Volume of Real Estate Transactions by Region (%)! in the first half of 2015!! Nabatieh! 9%! Bekaa! 11%! North! 17%! Beirut! 6%! South! 10%! Others! 3%! Kesserwan! 11%! Baabda! 21%! Metn! 12%! Source: Directorate of Real Estate and Cadastre, Bankmed Research Value of Value Real of Estate Real Estate Transactions Transactions by Region (million USD) Jan-Jun 2014 Jan-Jun 2015 % change Beirut 1, % Metn % Baabda % Kesserwan % North % Others % South % Nabatieh % Bekaa % Source: Directorate Bankmed of Real - Market Estate & Economic and Cadastre, Research Bankmed DivisionResearch 2

3 Revenues at the Port of Beirut drop by a yearly 6.6% in the first half of 2015 The number of imported cars via the Port of Beirut increased by 8.3% y-o-y to reach 40,814 during the January-June 2015 period, while the number of containers (including transshipment) decreased by an annual rate of 8.5% to reach 557,606. According to the latest figures released by the Port of Beirut, its total income reached USD 98.3 million in the first six months of 2015, a drop of 6.6% y-o-y from USD million in the same period of Over the same period, the number of imported cars via the port of Beirut increased by 8.3% y-o-y to reach 40,814, while the number of containers (excluding transshipment) went down by an annual 1.3% to reach 376,831. As for the number of transshipments, it decreased by 20.7% annually to reach 180,775 containers at end-june The number of ships that used the port during the first six months of 2015 dropped by 4.3%, amounting to a total of 975 ships. Number of Containers (including Transshipment) via the Port of Beirut! 609,589! 558,162! 557,606! 501,049! 514,768! Jan-Jun 2011! Jan-Jun 2012! Jan-Jun 2013! Jan-Jun 2014! Jan-Jun 2015! Source: Port of Beirut, Bankmed Research Bankmed - Market & Economic Research Division 3

4 Bank Audi reports USD 202 million of net profits in the first half of 2015, growing by 7% relative to the first half of 2014 Bank Audi s customers deposits reached USD 36.1 billion at end-june 2015, of which 45% from entities outside Lebanon while loans to customers reached USD 17 billion, of which 66% from entities abroad. Bank Audi released its consolidated financial statement for the period ended June The Bank s net profits increased by a yearly 7% to reach USD 202 million as at end-june Bank Audi's total assets reached USD 42.3 billion as at end-june 2015, going up by 0.7% from end-year The bank s customers deposits reached USD 36.1 billion over the same period, from USD 35.8 billion at end-december 2014 while customer loans reached USD 17.0 billion, going down 1.2% relative to end-december The shareholders' equity amounted to USD 3.1 billion, of which 88% of core common shareholders equity. The bank stated that 47% of its assets were generated by entities outside Lebanon and 32% in investment grade countries. Also, it added that 66% of its net loans and 48% of its net profits were generated by entities abroad. As per Bank Audi s statement, its capital adequacy ratio (CAR) reached 12.8%, in compliance with Basel III requirements. Also, its gross doubtful loans to gross loans ratio was 3.1% as of end-june 2015, and its return on average common equity was 13.8%. Bank Audi Financials (billion USD) Jun-15 Dec-14 % change Total Assets % Net Customers' Loans % Total Deposits % Total Equity % Net Profits (million USD) * 7.0% *as of end-june 2014 Source: Company Data, Bankmed Research Bankmed - Market & Economic Research Division 4

5 Byblos Bank records USD 70.1 million of net profits at end-june 2015 Total deposits reached USD 15.9 billion, increasing by 1.5% when compared with end-year Byblos Bank declared net profits of USD 70.1 million at end-june 2015, going up by 1% from USD 69.4 million recorded in June Total assets reached USD 19.2 billion as at end-june 2015, going up by 0.9% from end-year The Bank net customers loans dropped by 3.2% from end-year 2014 to reach USD 4.58 billion at end-june In parallel, customers deposits increased by 1.5% when compared with results of end-year 2014, reaching USD billion. Also, the shareholders' equity amounted to USD 1.63 billion at end-june 2015, going down by 3.8% million from end-december (billion USD) Jun-15 Dec-14 % change Total Assets % Net Customers' Loans % Total Deposits % Total Equity % Net Profits (million USD) * 1.0% *as of end-june 2014 Source: Company Data, Bankmed Research. Byblos Bank Financials Byblos Bank Financials Bankmed - Market & Economic Research Division 5

6 Deposits denominated in foreign currencies expand by USD 248 million during the week of July 10 16, 2015 Term and saving deposits in LBP increased by USD 62 million during the twenty-ninth week of the year. On the monetary front, the overall money supply M4 slightly increased by 0.1% during the week of July 10 16, 2015 to around USD billion, while the non-banking sector treasury bills portfolio increased by USD 41 million during the week. Lebanese Pound denominated deposits and currency in circulation M1 decreased by 3.5% (or USD 190 million) during the aforementioned week to USD 5.3 billion. This is mainly due to decreases in money in circulation and in demand deposits by USD 115 million and USD 75 million respectively. In parallel, local currency term deposits M2 decreased by USD 127 million during the same week but registered a twelve-month increase of 7.22% to stand at USD 50.5 billion. The private sector term and saving deposits denominated in LBP (M2 - M1) went up by USD 62 million during the mentioned week to around USD 45.0 billion, while deposits denominated in foreign currencies (M3 - M2) expanded by USD 248 million during the week to reach USD 70.1 billion. Money Supply Week of July 10-16, (billion USD) 9-Jul Jul-15 Absolute change over week M M M M M2-M M3-M M1 = Currency in Circulation + Demand Deposits in LBP M2 = M1 + Other Deposits in LBP M3 = M2 + Deposits in FX M4 = M3 + TBs held by non banking system including accrued interests Source: BDL, Bankmed Research Mazen Soueid, Stephanie Ghanem, Ziad Hariri and Rita Nehme Disclaimer This material has been prepared by Bankmed, sal based on publicly available information and personal analysis. It is provided for information purposes only. It is not intended to be used as a research tool nor as a basis or reference for any decision. The information contained herein including any opinion, news and analysis, is based on various publicly available sources believed to be reliable but its accuracy cannot be guaranteed and may be subject to change without notice. Bankmed, sal does not guarantee the accuracy, timeliness, continued availability or completeness of such information. All data contained herein are indicative. Neither the information provided nor any opinion expressed therein, constitutes a solicitation, offer, personal recommendation or advice. Bankmed, sal does not assume any liability for direct, indirect, incidental or consequential damages resulting from any use of the information contained herein.