About Us / Chairman’s Letter

Dear Clients, Partners and Correspondents,

 

In 2007, in spite of the unstable political situation in the country, the Lebanese economy was marked by a GDP growth of 4% compared to 0% in 2006. Following the trend of the major foreign economies, the inflation rate settled at 9.3% in 2007 against 5.6% in 2006. 

The Lebanese banking sector continued its glamorous growth during 2007, scoring the highest figures ever. All Lebanese banks have increased their capital in order to ensure better capital adequacy along with the adoption of Basel II requirements. As usual, the wise policy of the Central Bank of Lebanon and the different regulations issued by its bodies has helped protecting the Lebanese banks from any major crisis that was threatening regional and foreign markets. 

In 2007, MEAB sal demonstrated a great performance in its financial key indicators. The Banks' total assets reached LBP 760 billions in 2007, with an increase of 26% from 2006. Our customers' deposits increased by 15% totaling LBP 603 billions in 2007. The Banks' loans portfolio increased from LBP 137 billions in 2006 to LBP 206 billions in 2007, thus with an improvement of 50%.

The Shareholders' Equity reached LBP 46 billions in 2007 compared to LBP 33 billions in 2006. The Banks' net profits increased from LBP 2.6 billions in 2006 to LBP 2.7 billions in 2007. Our Capital adequacy ratio increased from 18.88% to 23.69% in 2007. 

In 2007, the Bank achieved many objectives that were set by the Board of Directors. We increased the Bank's paid capital from LBP 24 billions in 2006 up to LBP 41 billions, in order to meet the requirements of Basel II accord with an expected capital adequacy ratio of 11% after implementation of the new standards. 

The Bank has adopted a new organizational structure allowing us to better align with our corporate governance road map. Staff members increased by 30% in 2007, recruiting the best people based on our needs and the new banking requirements. 

The Bank continued its effort in the area of fighting money laundering and terrorism with a close collaboration with all the concerned local and foreign bodies and regulators. We have adopted a sound strategy to ensure our maximum to fighting money laundering and terrorism, spreading a whole culture of awareness among all our staff. 

As for 2008, MEAB sal objectives should be demonstrated once again by its ability of growth in the Lebanese and regional markets. We expect to open a new branch at Dora in Eastern Beirut by end of 2008. Our team will be ready for the implementation of Basel II starting January 2008 as set by the Central Bank of Lebanon. Our strategies and policies to ensure a sound control of banking risks have already been put in place. 

Finally, I would like to express our gratitude to you all for your support, trust and dedication: Clients, Partners, and Correspondents and especially MEAB team.

Kassem Hejeij
Chairman