audi private bank sal · a year of accomplishments and new highs describe audi private bank’s ......
TRANSCRIPT
Audi Private Bank sal
Audi Private Bank sal
CONTENTS
BOARD OF DIRECTORS AND MANAGEMENT
CHAIRMAN’S LETTER
STATEMENT OF FINANCIAL POSITION
OFF-BALANCE SHEET
INCOME STATEMENT
FINANCIAL HIGHLIGHTS 2016
BANK AUDI ADDRESSES
06
07
08
10
11
12
13
01020304
0607
05
BOARD OF DIRECTORSMember of the
AuditCommittee
Member of theRisk Committee
Member of theRemuneration
Committee
Member of theAML/CFT
Committee
Mr. Philippe R. SEDNAOUI Chairman
Mr. Fady G. AMATOURY Non-executive member
Mr. Toufic R. AOUAD Executive member
Dr. Khalil M. BITAR Independent member Chair
Mrs. Wafaa S. DAOUK Non-executive member
Dr. Joe A. DEBBANE Independent member Chair
Mr. Georges S. DOUMITH Independent member chair Chair
Mr. Salam G. NADDA Non-executive member
Bank Audi sal Member
MANAGEMENT
Mr. Philippe R. SEDNAOUI Chairman and General Manager
Mr. Toufic R. AOUAD General Manager
AUDITORS
Ernst & Young p.c.c.
BDO, Semaan Gholam & Co.
LEGAL ADVISORS
Messrs. Ramzi Joreige & Partners Law Firm
BOARD OF DIRECTORS AND MANAGEMENT01
06AUDI PRIVATE BANK SAL
A year of accomplishments and new highs describe Audi Private Bank’s 2016 performance and results. Despite deepening regional
turmoil, our company’s business model continued to perform, breaking new records and setting new Private Banking standards. APB
was again reconfirmed as the leading and best private bank in Lebanon in 2016 by both Euromoney and PWM/The Banker.
During the course of 2016, APB realized robust results, with net profit increasing by a record 39% and reaching LBP 44 billion; a result
ultimately driven by a 40% increase in healthy fee based revenue, lifted and supported by a vital 71% growth in off-balance sheet
assets under management, moving from LBP 2,482 billion as of December 2015 to LBP 4,232 billion as of December 2016.
As part of Bank Audi Global Private Bank, Audi Private Bank has continued its integration in the overall business franchise deriving
major synergies and best practices from a unified Global Investment Office in Execution, advisory and discretionary asset management.
Its geographical commercial footprint has also been successfully enlarged thanks to this continuing integration.
2016 also witnessed the launch of several technological systems upgrade throughout the Bank. This upgrade is part of a continuous
and sustained investment strategy focused on new technologies, to keep our banking platform at par with the highest international
standards of Compliance, modernization and security.
In closing, I would like to thank all APB’s professionals for the Bank’s success, and wish to express my gratitude to our clients for their
unwavering trust and fidelity, with my commitment to continue working to protect their best interests.
Philippe R. SednaouiChairman of the Board
CHAIRMAN’S LETTER02
07 ANNUAL REPORT 2016
AS AT31/12/16 31/12/15
LBP C/V LBP Total LBP C/V LBP Total
ASSETS
Cash and balances with Central Banks 15,498 329,769 345,267 8,459 256,548 265,007
Deposits with banks and financial institutions 25 22,474 22,499 17 17,836 17,853
Due from head office, sister, related banks and financial institutions 439,862 941,295 1,381,158 305,183 1,089,549 1,394,732
Loans to banks and financial institutions and reverse repurchase agreements - - - - - -
Financial assets given as collateral - - - - - -
Derivative financial instruments 1,613 216 1,829 870 251 1,121
Shares and participations at fair value through profit and loss - 3,288 3,288 - 7,954 7,954
Debt instruments and other similar financial assets at fair value through profit and loss - - - - - -
Of which: net advances and loans at fair value through profit and loss - - - - - -
Net loans and advances to customers at amortized cost(1) 27,110 174,481 201,592 30,002 204,844 234,846
Net loans and advances to related parties at amortized cost(2) - 9,563 9,563 - 8,943 8,943
Debtors by acceptances - - - - - -
Debt instruments classified at amortized cost(3) - 3,674 3,674 - 15,903 15,903
Shares and participations at fair value through other comprehensive income 4,301 715 5,016 4,018 580 4,598
Investments in associates 8,335 87,997 96,332 8,335 88,280 96,615
Assets taken in settlement of debts 51 3,599 3,650 41 3,135 3,176
Property and equipment 1,329 - 1,329 1,290 6 1,296
Intangible fixed assets 1,403 - 1,403 1,248 - 1,248
Non-current assets held for sale - - - - - -
Other assets 4,169 2,817 6,986 5,336 2,939 8,275
Goodwill - - - - - -
Total 503,696 1,579,888 2,083,584 364,799 1,696,768 2,061,567
(1) After deduction of provisions amounting to LBP 26,451 million from loans and advances to customers as per IAS 39, of which LBP 2,300 million representing provisions on collective assessment.
(2) Loans granted to related parties against cash collateral amounted to LBP 9,563 million.(3) Includes an amount of LBP (million) 3,674 representing Lebanese Eurobonds.
STATEMENT OF FINANCIAL POSITION(IN LBP MILLION)03
08AUDI PRIVATE BANK SAL
AS AT31/12/16 31/12/15
LBP C/V LBP Total LBP C/V LBP Total
LIABILITIES AND SHAREHOLDERS’ EQUITY
Due to Central Banks - - - - - -
Due to banks and financial institutions and repurchase agreement 195 132 328 185 68 253
Due to head office, sister, related banks and financial institutions - 1,063 1,063 - 356 356
Financial assets taken as a guarantee - - - - - -
Derivative financial instruments 538 - 538 966 - 966
Financial liabilities at fair value through profit and loss - - - - - -
Of which: deposits at fair value through profit and loss - - - - - -
Customers' deposits at amortised cost 240,901 1,513,050 1,753,952 138,822 1,614,240 1,753,062
Deposits from related parties at amortized cost 7,940 9,675 17,615 4,808 28,649 33,457
Debt issued and other borrowed funds - - - - - -
Engagements by acceptances - - - - - -
Other liabilities 33,656 2,223 35,878 19,285 1,236 20,521
Provisions for risks and charges 8,025 - 8,025 8,182 - 8,182
Subordinated loans and similar debts - - - - - -
Non-current liabilities held for sale - - - - - -
Total liabilities 291,255 1,526,143 1,817,398 172,248 1,644,549 1,816,797
SHAREHOLDERS' EQUITY - GROUP SHARE
Capital - Common shares 40,000 - 40,000 40,000 - 40,000
Capital - Preferred shares - - - - - -
Issue premium - Common shares - - - - - -
Issue premium - Preferred shares - - - - - -
Subsidiary shares warrants - - - - - -
Share capital and cash contribution to capital - - - - - -
Non-distributable reserves 76,427 34,627 111,054 70,640 32,167 102,807
Distributable reserves 43,914 3,317 47,231 43,914 3,317 47,231
Treasury shares - - - - - -
Retained earnings 21,073 - 21,073 21,073 - 21,073
Proposed dividends - - - - - -
Revaluation reserve of real estate - - - - - -
Reserve on revaluation of financial assets at fair value through other comprehensive income 2,761 209 2,971 2,521 128 2,649
Remeasurement actuarial (gain)/Loss on defined benefit plan 27 - 27 (528) - (528)
Share of associates' other comprehensive income under equity method - - - - - -
Foreign currency translation reserve - - - - - -
Net (loss) gain on hedge of net investments in foreign entities - - - - - -
Result of the current period 43,832 - 43,832 31,538 - 31,538
Shareholders' Equity - Group Share 228,033 38,153 266,186 209,158 35,612 244,770
Non-controlling interest - - - - - -
Total shareholders’ equity - - - - - -
Total liabilities and equity 519,288 1,564,296 2,083,584 381,406 1,680,161 2,061,567
09 ANNUAL REPORT 2016
AS AT31/12/16 31/12/15
LBP C/V LBP Total LBP C/V LBP TotalFinancing commitments- Financing commitments given to banks and financial
institutions - - - - - -
- Financing commitments given to customers - 50,205 50,205 - 33,809 33,809
Bank guarantees - - - - - - - Guarantees given to to banks and financial institutions 415 14,015 14,430 415 14,015 14,430
Of which: credit derivatives - - - - - -
- Guarantees received from banks and financial institutions - - - - - -
Of which: credit derivatives - - - - - -
- Guarantees given to customers 1,762 20,377 22,139 1,877 1,367 3,244
- Guarantees received from customers 52,223 396,709 448,932 59,302 407,095 466,397
Financial notes commitments - - - - - - - Financial notes commitments to be received - - - - - -
Of which: financial instruments sold with a buy back option - - - - - -
- Financial notes commitments to be delivered - - - - - -
Of which: financial instruments purchased with a buy back option - - - - - -
Foreign currencies forwards - - - - - - - Foreign currencies to receive - 139,228 139,228 - 234,127 234,127
- Foreign currencies to deliver - 138,153 138,153 - 234,223 234,223
Commitments on term financial instruments - 23,222 23,222 - 27,523 27,523
Other commitments 45 - 45 38 - 38
Claims from legal cases - - - - - -
Fiduciary accounts 2,114 2,162,126 2,164,240 2,112 597,330 599,442
Under specific instructions 2,114 2,162,126 2,164,240 2,112 597,330 599,442
Under discretionary investments - - - - - -
Assets under management 57,698 2,010,128 2,067,827 56,666 1,826,816 1,883,482
Mutual funds - - - - - -
Structured financial products - - - - - -
Engagement unlikely to be executed - - - - - -
Bad debts written off during the year 623 12,855 13,478 667 11,418 12,085
10AUDI PRIVATE BANK SAL
OFF-BALANCE SHEET(IN LBP MILLION)04
31/12/16 31/12/15Interest and similar income 90,924 88,894
Interest and similar expense (45,058) (48,198)
Net interest margin 45,866 40,696
Fee and commission income 23,276 17,080
Fee and commission expense (1,220) (1,236)
Net fee and commission Income 22,056 15,844
Net gain on financial assets or liabilities at fair value through profit and loss 2,158 2,167
Of which: interest income - -
Net gain on financial investments 432 84
Other operating Income 530 2,362
Total operating income 71,042 61,153
Net provisions for credit losses 9,200 1,541
Credit losses related to debt instruments classified at amortized cost - -
Provision for doubtful accounts (4,341) (114)
Recoveries of provisions for doubtful accounts 13,541 1,655
Impairment on related financial investments (283) -
Net operating income 79,959 62,694
Personnel expenses (17,968) (15,674)
Other operating expenses (8,982) (8,770)
Depreciation of property and equipment (425) (388)
Amortization of intangible assets (515) (384)
Impairment of goodwill - -
Total operating expenses (27,891) (25,216)
Operating profit 52,069 37,478
Share of profit of associates under equity method - -
Net gain (loss) on sale or disposal of other asset -
Profit before tax 52,069 37,478
Income tax (8,237) (5,940)
Profit after tax 43,832 31,538
Result of discontinued operations, net of tax - -
Profit for the current period 43,832 31,538
Minority share profit for the current period - -
Group share profit for the current period - -
Basic earnings per share LBP - -
Diluted earnings per share LBP - -
Basic earnings per share from continuing operations LBP - -
Diluted earnings per share from continuing operations LBP - -
11 ANNUAL REPORT 2016
INCOME STATEMENT(IN LBP MILLION)05
2016 is yet another year of growth for Audi Private Bank amidst rising challenges in the regional economical and geopolitical situation,
in addition to tightening in the local and international regulatory environment.
Total footings (on-balance sheet assets, off-balance sheet assets under management) have grown by 38.97%, moving from LBP 4,544
billion to LBP 6,315 billion as at end 2016.
Off-balance sheet assets under management, including fiduciary accounts, have increased significantly by 70.45% moving from
LBP 2,482 billion as of December 2015 to LBP 4,232 billion as of December 2016; customers’ deposits reached a total of LBP 1,771
billion despite stagnation witnessed in the Lebanese market.
In parallel to the off-balance sheet growth, profitability in 2016 has reached new highs. APB’s net interest income went up from LBP 41
billion to LBP 46 billion, reflecting an increase of 12.7%. Non-interest income posted was LBP 25 billion, representing a year-on-year
growth of 23%, and net fees and commission income improved by 39.21% to reach LBP 22 billion.
In addition to the above, net recoveries on credit losses and provision on impaired financial instruments amounted to LBP 9.2 billion.
Within the context of the Bank’s expansion strategy, total operating expenses increased by 11% to LBP 28 billion, particularly due to
an increase in staff costs.
In summary, Audi Private Bank has continued to maintain its trend of rapid growth, which has culminated in to a year-on-year increase
in net profit by 38.98% to LBP 44 billion.
FINANCIAL HIGHLIGHTS 201606
12AUDI PRIVATE BANK SAL
BANK AUDI
BANK AUDI salBeirutHEADQUARTERS Tel: +961 1 994 000Bank Audi Plaza Fax: +961 1 990 555Bab Idriss Customer Helpline: +961 1 212 120; 1570P.O. Box 11-2560 [email protected], Lebanon bankaudigroup.com
COUNTRY MANAGEMENT - LEBANONBank Audi Palladium Tel: +961 1 994 000Bab Idriss Fax: +961 1 990 555P.O Box 11-2560 [email protected], Lebanon bankaudi.com.lb
M1 Building Tel: +961 1 994 000Bab Idriss Fax: +961 1 990 555P.O. Box 11-2560 [email protected], Lebanon bankaudi.com.lb
BANK AUDI FRANCE saParis Tel: +33 1 53 83 50 0073 Champs-Elysées Avenue Fax: +33 1 42 56 09 74 75008 Paris, France [email protected] bankaudi.fr
BANK AUDI LLC
DohaQatar Financial Centre Tower, 18th Fl. Tel: +974 44967365Diplomatic Area, West Bay Fax: +974 44967373P.O. Box 23270 [email protected], Qatar bankaudipb.com
BANK AUDIINVESTMENT BANK
AUDI INVESTMENT BANK salBeirut Bank Audi Plaza Tel: +961 1 994 000Block B, Bab Idriss Fax: +961 1 999 406P.O. Box 16-5110 [email protected], Lebanon bankaudigroup.com
BANK AUDIPRIVATE BANK
AUDI PRIVATE BANK salBeirutHEAD OFFICEBank Audi Plaza Tel: +961 1 954 800, 954 900Block D, Bab Idriss Fax: +961 1 954 880P.O. Box 11-1121 [email protected], Lebanon bankaudipb.com
BRANCHBank Audi Plaza Tel: +961 1 954 800, 954 900Block D, Bab Idriss Fax: +961 1 991 287, 954 841Beirut, Lebanon [email protected]
BANQUE AUDI (SUISSE) SA
HEAD OFFICEGeneva Tel: +41 22 704 11 1118, Cours des Bastions Fax: +41 22 704 11 00P.O. Box 384 [email protected] Geneva 12, Switzerland bankaudipb.com
REPRESENTATIVE OFFICEBeirutBank Audi PlazaBab IdrissP.O. Box 11-2666 Tel: +961 1 977 544Beirut, Lebanon Fax: +961 1 980 535
AUDI CAPITAL (KSA) cjscRiyadh2908 Centria Bldg., 3rd Floor, PrinceMohammad Bin Abdul Aziz Road(Tahlia). Postal Address: Unit No. 28 Tel: +966 1 2199300Ar Riyadh 12241-6055 Fax: +966 1 4627942P.O. Box 250744 Riyadh 11391 [email protected] of Saudi Arabia audicapital.com
AUDI CAPITAL GESTION SAMMonaco Tel: +377 97 97 65 11Monte-Carlo Palace Fax: +377 97 97 65 193-9 Boulevard des Moulins [email protected] - 98000 Monaco bankaudipb.com
BANK AUDI salAbu Dhabi REPRESENTATIVE OFFICEEtihad Towers, Tower 3, 15th Fl. Tel: +971 2 6331180Office 1503, Corniche Street Fax: +971 2 6336044P.O. Box 94409 Abu Dhabi [email protected] Arab Emirates bankaudipb.com
BANK AUDI ADDRESSES07
13 ANNUAL REPORT 2016
bankaudipb.com