Message of the Chairman
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The Lebanese banking sector has grown significantly over the last decade, with total deposits for the sector easily reaching US$ 50 billion by the end of 2004. The sector has also consolidated significantly in recent years, with the number of banks having dropped from more than 80 banks ten years ago to around 50 today. Lebanese banks operate in a constraining operational environment, which is significantly mitigated by an efficient regulatory environment. Banks are also characterized by a high level of liquidity, a recurrent deposit base, and a strong regulatory capitalization.
To our shareholders, our correspondent banks, our management and staff and to all our clientele who have continuously put their trust in our institution; I take great pride in presenting this year's annual report for a multitude of reasons, and feel obliged to thank all the management and staff that are responsible for this performance by highlighting these major qualitative accomplishment, which do not necessarily show up on our balance sheet.
The year 2004 will no doubt be remembered by all as a turning point for CreditBank s.a.l.:
A year where persistent organizational and operational shortcomings were tackled bringing forth our culture of corporate governance fit for the 21st century;
A year where business development challenges were undertaken and conquered, anchoring our brand name and image in the marketplace;
A year where we succeeded in expanding our network to cover all the remote regions - Tripoli in the north, Saida in the south and Chtaura in the Bekaa-as well as centralize our headquarters in a modern and state of the art facility.
Together, these feats, superimposed with the year's fine performance stand witness to our dynamic and dedicated team.
Over and above the qualitative improvements mentioned, it should be noted that our key performance indexes in 2004 outperformed the market's averages on the whole:
- Deposits: our deposits increased by 22.71% compared to a market growth of 13.14%.
- Loans: our loans increased by 46% compared to a market growth of 8%.
- Network: CreditBank’s branches increased by 30% due to the expansion policy adopted by the Bank.
In the medium term our positioning is that of reaching out and bridging across the pan Arab market and consolidating our presence in this market through strategic alliances with other financial partners. Our long term vision for the future is to seek to consolidate our efforts collectively to position the bank as an integral part of a premier pan Arab reference.