AUDI SARADAR PRIVATE BANK sal Head Office Beirut Clover Bldg., Charles Malek Avenue, Achrafieh P.O.Box 11-1121 & 11-3312 Riad El-Solh, Beirut, 1107 2070 & 1107 2130 LEBANON Achrafieh Branch Clover Bldg., Charles Malek Avenue, 5th Floor, Beirut LEBANON
BANK AUDI sal - AUDI SARADAR GROUP Beirut Bank Audi Plaza, Bab Idriss P.O.Box 11-2560 Riad El-Solh Beirut 1107 2808 LEBANON
AUDI SARADAR INVESTMENT BANK sal Beirut Bank Audi Plaza, Bab Idriss P.O.Box 16-5110 Beirut LEBANON
Tel: +961 1 205 400, 208 400 Fax: +961 1 205 480, 205 454
[email protected] http://www.audisaradarpb.com Tel: +961 1 205 400, 208 400 Fax: +961 1 200 265, 205 441
[email protected]
Tel: +961 1 994 000 Fax: +961 1 990 555
[email protected] http://www.banqueaudi.com
Tel: +961 1 994 000 Fax: +961 1 999 406, 200 950
[email protected]
AnnualReport
BANQUE AUDI (SUISSE) sa Head Office Geneva 18, Cours des Bastions P.O. Box 384 1211 Geneva 12 SWITZERLAND
Representative Office Beirut Bank Audi Plaza, Bab Idriss P.O.Box 11-2666 Riad El Solh Beirut 1107 2110 LEBANON
BANK AUDI SARADAR FRANCE sa
Paris 73, Champs-Elysées Avenue 75008 Paris FRANCE
AUDI CAPITAL (KSA) cjsc Riyadh Centria Bldg., 3rd Floor Prince Mohammad Bin Abdul Aziz Road (Tahlia) P.O. Box 250744, Riyadh 11391 KINGDOM OF SAUDI ARABIA BANK AUDI LLC Doha Qatar Financial Center Tower Office 1801, 18th Floor, Diplomatic Area P.O. Box 23270 Doha QATAR BANK AUDI sal - Representative Ofiice Abu Dhabi Arab Monetary Fund Bldg., Corniche Street P.O. Box 94409 UNITED ARAB EMIRATES
BANK AUDI sam - AUDI SARADAR GROUP
Monaco 24 Boulevard des Moulins MC 98000 MONACO
Tel: +41 22 704 11 11 Fax: +41 22 704 11 00
[email protected] http://www.bankaudi.ch
Tel: +961 1 977 544 Fax: +961 1 980 535
Tel: +33 1 53 83 50 00 Fax: +33 1 42 56 09 74
[email protected]
Tel: +966 1 2199300 Fax: +961 1 4627942
[email protected] http://www.audicapital.com
Tel: +974 4967365 Fax: +974 4967373
[email protected]
Tel: +971 2 6331180 Fax: +971 2 6336044
[email protected]
Tel: +377 97 701 701 Fax: +377 97 701 741 MC 98000 MONACO
[email protected] http://www.bankaudi.mc
Audi Saradar Private Bank sal
2010
CHAIRMAN’S LETTER Despite a still very challenging environment, 2010 was a successful year for Audi Saradar Private Bank sal (ASPB) which achieved strong profitability with a net income of USD 27.84 million, representing increased earnings of 82.14% compared to 2009 and including dividends of USD 10.86 received from Solifac sal, ASPB’s subsidiary specialised in factoring.
BOARD OF DIRECTORS Chairman
Mr. Fady G. Amatoury (Since December 20, 2010) Mr. Mario J. Saradar (Until December 20, 2010)
Members
Mr. Marc J. Audi (Until February 11, 2011) Dr. Joe A. Debbané Mr. Istvan I. Nagy Bank Audi sal - Audi Saradar Group
MANAGEMENT Chairman & General Manager
Mr. Fady G. Amatoury (Since December 20, 2010) Mr. Mario J. Saradar (Until December 20, 2010)
General Manager
Mr. Toufic R. Aouad
Executive Managers
Ms. Leila S. Alameddine (Until May 31, 2011) Mrs. Martine S. Hochar Ms. Nada M. Safa (Since March 01, 2011)
Regional Managers
Mr. Maher A. Raham Mrs. Nada M. Rizk
Manager - Head of Operations & Organisation Manager - Head of Product Development Unit Manager - Head of Internal Control & Compliance Manager - Head of HR Private Banking Business Line Manager - Head of Credit Unit
Mrs. Aline S. Karam Mr. Charles R. Najjar (Until February 28, 2011) Mrs. Eugénie E. Rizkallah Mrs. Claudine E. Selouan Mrs. Marie G. Touma
AUDITORS Ernst & Young Semaan, Gholam & Co.
In terms of assets under management, ASPB witnessed an important growth in customers’ deposits and off-balance sheet assets which respectively increased by over USD 490 million and USD 187 million. At end-2010, ASPB managed USD 3,440 million in off-balance sheet assets and customers’ deposits, up by 24.47% compared to 2009. In addition, ASPB was awarded, for the fourth year in a row, the “Best Local Private Bank in Lebanon” award for 2010 by Euromoney Magazine, a growing international recognition of the Bank’s core values, constant efforts, and high customer service. Audi Saradar Group benefits from a leading position in Private Banking, catering to the needs of high net worth individuals through its entities providing Private Banking services, namely Banque Audi (Suisse) sa, Audi Saradar Private Bank sal, Bank Audi LLC (Qatar) and Audi Capital (KSA), accounting for over USD 8.2 billion of assets under management at end-2010, by far the largest portfolio managed by a Lebanese banking group. With a view to extending the Group’s Private Banking business, Bank Audi sal - Audi Saradar Group acquired Monaco’s Dresdner Bank SAM in September 2010. In parallel, Banque Audi (Suisse) sa opened a branch in Gibraltar in February 2010. Human resources in 2010 ensured full alignment with the expansion strategy of the Private Banking business line. Recruitment mainly consisted in the employment of a dedicated team of investment specialists and analysts who significantly expanded the Bank’s product offering to provide high net worth clients with a complete range of investment products and services. The Bank’s product offering now includes Investment Advisory Services on asset allocation, Stock Selection, Mutual Funds, Exchange Traded Funds, Bonds, Foreign Exchange, Vanilla and Exotic Options, as well as Structured Products and Tailor-made Investment Proposals. Daily market updates and weekly reports are also prepared to keep the Bank’s relationship managers and clients updated on market dynamics and investment opportunities. Amongst the range of products offered by ASPB’s subsidiaries are real estate investment products. Indeed, in 2010, ASPB successfully launched 2 projects in commercial and residential real estate by raising private equity funds amounting to USD 80 million. A major effort was also allocated in 2010 to Training and Development: Private Banking special training programs for young promising talents were launched and ongoing development programs are currently being implemented in order to continue building an elite Private Banking team with the necessary skills to serve clients at the highest level. At the IT level, ASPB witnessed the launch of the Basel II module which constitutes a crucial regulatory and risk management tool, and the development of the Capital Private Banking valuation reporting, an advanced Private Banking CRM and asset management platform. Furthermore, ASPB initiated a full upgrading project of its networking infrastructure. As we look back on 2010 and ahead to 2011, we remain confident in our ability to adapt to dynamic financial markets. Our products and services are designed to meet the needs of our clients, regardless of economic conditions. In closing, I would like to express my gratitude to all our colleagues for their loyalty and hard work, and to our clients for their valued trust, and I have no doubt that 2011 will be another year of continued growth and achievements.
Fady G. Amatoury Chairman & General Manager
Audi Saradar Private Bank
Annual Report 2010
2
BALANCE SHEET AS AT DECEMBER 31, 2010
2010 ASSETS (in LL Millions)
LL
C/V LL
TOTAL
LL
C/V LL
TOTAL
73,054
472,250
545,304
62,918
360,025
422,943
23
46,616
46,639
19
60,362
60,381
508,205
1,903,705
2,411,910
362,837
1,402,498
1,765,335
Derivative financial instruments
-
318
318
-
1,689
1,689
Financial assets held for trading (**)
-
160
160
-
152
152
Loans and advances to customers (*)
1,283
392,399
393,682
166
342,019
Loans and advances to related parties
63
154,870
154,933
25
139,327
Cash and balances with Central Banks Due from banks and financial institutions Due from Head Office, sister, related banks and financial institutions
C/V LL
TOTAL
LL
C/V LL
TOTAL
Due to banks and financial institutions
1,128
6,137
7,265
1,550
6,073
7,623
Due to Head Office, sister, related banks and financial institutions
4,099
631
4,730
2,481
24,053
26,534
-
715
715
-
1,851
1,851
458,352
2,922,593
3,380,945
393,209
2,258,729
2,651,938
Deposits from related parties
3,655
90,219
93,874
3,753
80,866
84,619
342,185
Current tax liabilities
5,098
-
5,098
2,996
-
2,996
139,352
Deferred tax liabilities
36,335
37,272
4,282
43,594
47,876
Financial assets classified as loans and receivables (**)
-
20,128
20,128
55,490
21,765
77,255
Financial instruments held to maturity (**)
-
13,686
13,686
-
13,673
13,673
Investments in associates
20,451
11,115
31,566
21,352
11,115
32,467
Property and equipment
18,371
-
18,371
19,108
-
19,108
Intangible fixed assets
780
-
780
1,130
-
1,130
Non current assets held for sale
196
8,752
8,948
(415)
12,456
12,041
2,348
252
2,600
2,064
436
2,500
625,711
3,060,586
3,686,297
528,976
2,409,111
2,938,087
Other assets TOTAL ASSETS
* **
LIABILITIES AND SHAREHOLDERS’ EQUITY (in LL Millions)
2009
LL
937
Available for sale financial instruments (**)
2010
2009
After deduction of provisions amounting to LBP (million) 47,062 from loans and advances to customers as per IAS 39, of which LBP (million) 580 representing provisions on collective assessment Includes an amount of LBP (million) 38,396 representing Lebanese Eurobonds
Derivative financial instruments Customers’ deposits
3
536
539
11
312
323
7,864
3,450
11,314
6,063
3,941
10,004
58
-
58
78
-
78
2,104
-
2,104
3,663
-
3,663
482,361
3,024,281
3,506,642
413,804
2,375,825
2,789,629
40,000
-
40,000
40,000
-
40,000
72,730
20,774
93,504
64,028
18,314
82,342
16
3,039
3,055
64
1,766
1,830
1,126
-
1,126
1,243
-
1,243
41,970
-
41,970
23,043
-
23,043
Shareholders’ Equity
155,842
23,813
179,655
128,378
20,080
148,458
TOTAL LIABILITIES & SHAREHOLDERS' EQUITY
638,203
3,048,094
3,686,297
542,182
2,395,905
2,938,087
613
17,933
18,546
613
20,156
20,769
87
25,006
25,093
196
27,037
27,233
3,281
4,950
8,231
5,088
6,046
11,134
83,932
757,435
841,367
24,203
694,710
718,913
-
54,591
54,591
-
118,405
118,405
Foreign currencies to deliver
-
55,156
55,156
-
118,566
118,566
Engagements on term financial instruments
-
212
212
-
181
181
6,784
362,157
368,941
6,784
430,738
437,522
70,630
1,272,503
1,343,133
45,123
948,148
993,271
2,520
67,682
70,202
2,279
63,838
66,117
Other liabilities Provisions for risks and charges End of service benefits Total Liabilities Shareholders’ equity - Group share Capital - Common shares Capital reserves Reserves on reevaluations of financial instruments Other reserves Result of the year
OFF-BALANCE SHEET ITEMS (in LL Millions) Bank Guarantees Guarantees given to banks and financial institutions Guarantees received from banks and financial institutions Guarantees given to customers Guarantees received from customers Foreign Currency Forwards Foreign currencies to receive
Fiduciary assets Assets under management Bad debts fully provided for
Audi Saradar Private Bank
Annual Report 2010
4
INCOME STATEMENT AS AT DECEMBER 31, 2010
2010
2009
INCOME STATEMENT (in LL Millions)
FINANCIAL HIGHLIGHTS FOR THE YEAR 2010 146,626
115,835
(108,975)
(89,792)
37,651
26,043
Fees and commissions income
9,213
9,061
Fees and commissions expenses
(940)
(936)
Net fees and commissions income
8,273
8,125
Net trading income
1,217
1,665
16,689
6,309
Other operating income
3,278
2,707
Total operating income
67,108
44,849
Net provisions for credit losses
4,068
3,273
Provisions for doubtful loans
(196)
(1,280)
Recoveries of provisions for doubtful loans
4,264
4,553
Provision on impairment of financial instruments
(900)
(2,094)
Net operating income
70,276
46,028
Personnel expenses
(9,419)
(9,275)
Depreciation of property and equipment
(1,113)
(1,048)
(368)
(731)
Other operating expenses
(12,222)
(8,682)
Total operating expenses
(23,122)
(19,736)
47,154
26,292
3
(7)
Profit before tax
47,157
26,285
Income tax
(5,187)
(3,242)
Profit after tax from operating activities
41,970
23,043
Profit for the period
41,970
23,043
Net Profit - Group share
41,970
23,043
Basic earnings per share
1.049
0.576
Diluted earnings per share
1.049
0.576
Interest and similar income Interest and similar expenses Net interest income
Net gain or loss on financial investments
Amortization of intangible assets
Operating profit Net gain (loss) on sale or disposal of other assets
With indicators revealing two-digit activity growth rates, Audi Saradar Private Bank sal (ASPB) posted an outstanding performance in 2010. Total footings (on-balance sheet assets and off-balance sheet assets under management) grew by 23.56%, moving from LL 4,369 billion to LL 5,398 billion at end-2010. This growth was mainly driven by customers’ deposits which rose by 26.98% over the year, from LL 2,737 billion at end-December 2009 to LL 3,475 billion at end-December 2010, and by off-balance sheet AUMs which rose by 19.66% and registered a total of LL 1,712 billion in 2010. Loans and advances to customers posted a year-on-year growth of 13.93%, totaling LL 549 billion at end-December 2010, out of which 73% were granted against cash collaterals. In parallel with asset growth, profitability recorded new highs in 2010. ASPB’s net interest income went up from LL 26 billion to LL 38 billion, reflecting a remarkable increase of 44.57% within a context of better control over interest margins. Non-interest income also witnessed a significant increase of 56.64%, reaching LL 29 billion including dividends received from ASPB’s subsidiary, Solifac sal, which amounted to LL 18.2 billion in 2010 compared to LL 6.8 billion in 2009. Adding to the above net recoveries on credit losses and provision on impairment of financial instruments totaling LL 3.17 billion, the net operating income improved by 52.68% to reach LL 70 billion. On the other hand, total operating expenses increased by 17.16%, reaching LL 23 billion. In view of these positive results, ASPB succeeded in achieving an increase of 82.14% in its net earnings compared to 2009, recording LL 42 billion including net dividends received by Solifac sal. Nevertheless, profits for the year would have increased by a notable 51.42% as compared to 2009 if we exclude the net dividends of Solifac sal.
Audi Saradar Private Bank
Annual Report 2010
6
AUDI SARADAR PRIVATE BANK sal Head Office Beirut Clover Bldg., Charles Malek Avenue, Achrafieh P.O.Box 11-1121 & 11-3312 Riad El-Solh, Beirut, 1107 2070 & 1107 2130 LEBANON Achrafieh Branch Clover Bldg., Charles Malek Avenue, 5th Floor, Beirut LEBANON
BANK AUDI sal - AUDI SARADAR GROUP Beirut Bank Audi Plaza, Bab Idriss P.O.Box 11-2560 Riad El-Solh Beirut 1107 2808 LEBANON
AUDI SARADAR INVESTMENT BANK sal Beirut Bank Audi Plaza, Bab Idriss P.O.Box 16-5110 Beirut LEBANON
Tel: +961 1 205 400, 208 400 Fax: +961 1 205 480, 205 454
[email protected] http://www.audisaradarpb.com Tel: +961 1 205 400, 208 400 Fax: +961 1 200 265, 205 441
[email protected]
Tel: +961 1 994 000 Fax: +961 1 990 555
[email protected] http://www.banqueaudi.com
Tel: +961 1 994 000 Fax: +961 1 999 406, 200 950
[email protected]
AnnualReport
BANQUE AUDI (SUISSE) sa Head Office Geneva 18, Cours des Bastions P.O. Box 384 1211 Geneva 12 SWITZERLAND
Representative Office Beirut Bank Audi Plaza, Bab Idriss P.O.Box 11-2666 Riad El Solh Beirut 1107 2110 LEBANON
BANK AUDI SARADAR FRANCE sa
Paris 73, Champs-Elysées Avenue 75008 Paris FRANCE
AUDI CAPITAL (KSA) cjsc Riyadh Centria Bldg., 3rd Floor Prince Mohammad Bin Abdul Aziz Road (Tahlia) P.O. Box 250744, Riyadh 11391 KINGDOM OF SAUDI ARABIA BANK AUDI LLC Doha Qatar Financial Center Tower Office 1801, 18th Floor, Diplomatic Area P.O. Box 23270 Doha QATAR BANK AUDI sal - Representative Ofiice Abu Dhabi Arab Monetary Fund Bldg., Corniche Street P.O. Box 94409 UNITED ARAB EMIRATES
BANK AUDI sam - AUDI SARADAR GROUP
Monaco 24 Boulevard des Moulins MC 98000 MONACO
Tel: +41 22 704 11 11 Fax: +41 22 704 11 00
[email protected] http://www.bankaudi.ch
Tel: +961 1 977 544 Fax: +961 1 980 535
Tel: +33 1 53 83 50 00 Fax: +33 1 42 56 09 74
[email protected]
Tel: +966 1 2199300 Fax: +961 1 4627942
[email protected] http://www.audicapital.com
Tel: +974 4967365 Fax: +974 4967373
[email protected]
Tel: +971 2 6331180 Fax: +971 2 6336044
[email protected]
Tel: +377 97 701 701 Fax: +377 97 701 741 MC 98000 MONACO
[email protected] http://www.bankaudi.mc
Audi Saradar Private Bank sal
2010