By Sami Zaptia.
Tripoli, 27 April 2014:
Libya’s privately owned United Bank announced increased profits and assets in 2013 at its AGM held . . .[restrict]today in Tripoli.
Speaking at the meeting, United Bank Chairman Abdullah Al-Saudi revealed that total bank assets had increased from LD 395.9 million in 2012 to LD 441.8 million in 2013. United bank has 12 branches and employees 301 employees
Saudi also revealed that deposits had increased by 11 percent from LD 294.7 m in 2012 to LD 333 m in 2013. Credit facilities offered by the bank also increased from LD 70.2 m to LD 116.1 m. Net profits also increased since 2012 from LD 2.3 to LD 2.9 m in 2013.
Shareholder assets also increased from LD 95.7 to 98.9 m. Meanwhile a 10 percent profits dividend was paid out to shareholders in the form of shares totaling LD 8.8 m.
United Bank results 2013
| LD million |
2012 |
2013 |
| Total assets | 395.9 | 441.8 |
| Deposits | 294.7 | 333 |
| Credit | 70.2 | 116.1 |
| Net profit | 2.3 | 2.9 |
| Shareholder assets | 95.7 | 98.9 |
| Share payout |
– |
8.8 |
Source: United Bank 2013 Report
Poor security affects performance
Chairman Al-Saudi admitted that the negative security climate in Libya had reflected badly on the country’s economy, the banking sector and United bank’s performance.
“2013 was not a better year than the previous year. The security situation deteriorated to a degree not witnessed by Libya before. Economic activity stalled, with the exception for the import of consumer goods despite the huge 2013 budget reaching about LD 70 bn (or over US$ 55 bn), the largest in Libya’s history”.
“The failure of the government to ensure security had led to chaos which led to the kidnapping and armed robbery of many organizations, including United bank. Its branches in Ajilat, Surman, Zahra and Azizia were robbed in broad daylight leading to financial loss and damage to property and equipment”.
Islamic banking
With regards to implementing Islamic banking, Al-Saudi said that United bank had started as of January 2014 to implement Law No1 2013 which stipulates that all banks must start to implement Islamic Sharia-compliant by January 2015.
Al-Saudi said that United Bank’s Ghoat Al-Shaal branch would open as an Islamic banking branch, but added that in his personal opinion, he did not “think that it will be possible to implement Sharia-compliant banking by January 2015. Both the public and the banks need more time to implement Islamic banking”, he said.
Future plans
Looking to the future, the United Bank Chairman said that the bank was set on implementing major reorganization in preparation for Islamic banking and the reorganization of its branches with certain branches specializing in corporate clients.
In concluding, Al-Saudi said that despite the difficult situation in Libya, he was nevertheless optimistic about the future.
He added that United Bank had come a long way since its formation in 2007 when three regional banks were amalgamated. In 2007 it had assets of only LD 7 m compared to today’s LD 100 m mainly due to the purchase of a LD 70 m or 40 percent stake by Bahrain’s Ahly Bank. Shareholder value had also increased by 76 percent, he pointed out.
“There can be no economy without banks and banks are the basis of a strong economy”, Al-Saudi concluded. [/restrict]
