In its 2011 survey of the Top 1,000 commercial banks in the world, The Banker magazine included nine Lebanese banks on the list, unchanged from last year, none of which ranked among the top 25 lenders in the Middle East.
The rankings, as reported by Lebanon This Week, the economic publication of Byblos Bank Group, are based on Tier One capital at year-end 2010 as defined by the Basel Bank for International Settlements. The Banker said the definition is stricter than total shareholders’ equity and covers only the core of a bank’s strength, namely the shareholders’ equity available to cover actual or potential losses.
The aggregate Tier One capital of the nine Lebanese banks totaled $8.67 billion at end-2010, constituting a 15 percent growth from the previous year compared to a 10 percent rise in the Tier One capital of the Top 1,000 banks.
Also, Lebanon had the best loans-to-deposits ratio at 41.85 percent among countries represented by the Top 1000 banks.
Further, the profits-to-Tier One capital ratio of the Lebanese banks reached 19.9 percent in 2010 compared to 13 percent for the Top 1,000 banks.
In addition, Lebanon ranked in 18th place globally and in third place in the Arab world in terms of profits on average capital in 2010. Lebanon’s ratio of 21 percent came behind Morocco with 25.5 percent and Qatar with 24.3 percent in the region.
Seven Lebanese banks improved their ranking in the 2011 survey, with Byblos Bank jumping 58 places and posting the biggest year-on-year improvement in the standings among the top three Lebanese banks, and the second highest among Lebanese peers included in the survey.