Byblos Bank s.a.l. -- News Center -- Corporate News

Byblos Bank SAL announces the acquisition of the Branch of Unicredit Banca Di Roma SpA in Lebanon s.a.l.

As at 30/09/2008, Byblos Bank had total assets of USD 10,861 million, customer deposits of USD 8,039 million, net advances to customers of USD 2,748 million, and a total equity of USD 1,198 million.

Byblos Bank Approves the Largest Issuance of Preferred Shares in Lebanon in 2008
A $200-million Preferred Shares Issuance

Byblos Bank Sponsors the "AUB Class Reunion 2008 Program"
For the American University of Beirut Alumni

Byblos Bank Welcomes Patti Smith
During a Press Conference Held at the Bristol Hotel

Byblos Bank Syria Launches New Retail Products and Services in Syria
After the Housing Loan, Now it is the Time for the Auto Loan, the Personal Loan and Plastic Cards

Byblos Bank Syria Headquarters, September 10, 2007:
Byblos Bank Syria launched its new basket of Retail Products and Services in the Syrian Market during a press conference held at the Meridien hotel, Damascus at 11:30. The conference gathered the Syrian press, new car dealers in Syria, and executives in the fields of plastic cards and loans from Byblos Bank. The conference revolved around the newly launched Auto Loan, the Personal Loan and Plastic Cards.

In his opening speech, Mr. Walid Abdel Nour, Deputy General Manager at Byblos Bank Syria welcomed the guests and exposed the main objectives that Byblos Bank Syria seeks to achieve: have an efficient presence in all districts, provide the best banking services and products, answer the ambition of the Bank’s shareholders and clients, effectively contribute to the growth of Syria and the enhancement of the Syrian people’s lifestyle through the activation of investment and consumption and widening of the middle class base in Syria.

Followed the speech of Mr. Abi Khalil, Head of Retail products development at Byblos Bank who announced the launching of a basket of new retail products by Byblos Bank Syria comprising the Auto Loan, the Personal Loan and plastic cards. He added that these products come within the array of retail products targeting individuals and are the result of deep field studies on the main needs and expectations of the Syrian consumer. He also tackled the Housing Loan launched by Byblos Bank Syria at the beginning of the year stressing that the Housing Loan constitutes the corner stone of all retail products that the bank strives to offer to all social classes.

From her side, Mrs. Georgina Eid Dinar, Head of Consumer Loans Unit at Byblos Bank discussed the newest retail product launched by Byblos Bank Syria in the Syrian market, the Auto Loan. She highlighted that, before deciding to launch this special product in Syria, Byblos Bank relies on its vast expertise and its solid relations in the field of consumer products, being the first Lebanese bank to have launched the concept of retail loans in the eighties. The Bank’s team conducted deep studies for the car and banking sectors, loan activities, and other banking products. Through Byblos Bank Syria Auto Loan, the Syrian consumer will be able to own a car at very easy conditions: a loan stretched over 5 years, competitive interests, a 10% down payment, no restrictions on the car brand, competitive prices for the insurance policy, flexible applications and many other benefits; the most important being that the client can get a pre-approval on the loan before choosing his car.

She then tackled the new Personal Loan aimed at helping clients, especially individuals and families, acquire any product or service they need when they don’t have the required cash amounts. She specified that this loan is addressed to Syrian employees within a group offering and is paid back with easy installments for an acceptable period of time without affecting the client’s casual standards of living.

Mr. Georges Fares, Head of Cards Unit at Byblos Bank discussed Byblos Bank cards that constitute a considerable part of Byblos Bank’s services. He tackled the different types of cards offered by the Bank: debit and charge cards, highlighting their features and the additional free benefits accompanying them among which the free balance inquiry, the free replacement card in case of loss or theft, etc. Mr. Fares recalled that the Bank’s cards are well-studied to serve the needs of all segments, while ensuring the best possible security. Mr. Fares also stressed on the fact that Byblos Bank Syria strives to providing its customers with the well-being they deserve, because it promised them that “Tomorrow would be a Brighter Day”, and will deploy all the efforts to fulfill its promise.

The most important issue conveyed during the conference is that Byblos Bank Syria will keep its promises launched at the establishment of the Bank stating that: Tomorrow will be a brighter day for ambitious young people who dream of new projects and important achievements … Tomorrow will be a brighter day for the new generation beating with hopes for a better future … Tomorrow will be a brighter day with a Bank with solid experience and a serious history that enters the Syrian market to be part of the development occurring in the economic and banking sectors… Tomorrow will be a brighter day with a Bank for Life, with Byblos Bank Syria. The press conference was followed by a lunch held at the Meridien Hotel.

Byblos Bank Granted a $50 Million Term Loan Facility from OPIC & CITI
Underscoring Commitment to Supporting Economic Recovery in Lebanon.

Byblos Bank Tower, Ashrafieh, April 2007:
The Overseas Private Investment Corporation (OPIC) and Citi today announced a $50 million 15-year term loan facility to Byblos Bank SAL (Lebanon), which will be used to support Byblos Bank’s lending to small and medium-sized enterprises (SMEs), mortgages and consumer finance.

Byblos Bank S.A.L. is one of the leading Lebanese banks enjoying a key-strength in international activities and trade finance.

Robert Mosbacher, Jr., President and CEO of OPIC said: “Both OPIC and Citi recognize the urgency of the situation and the need, especially for small entrepreneurs and families, to have access to long term credit as soon as possible, so that Lebanon can resume its progress toward economic growth and stability.”

Walter Siouffi, Citi Country Officer for Lebanon, said: “This transaction is a sign of our commitment to support Lebanon’s economic recovery and combines the combined strengths of global financial powerhouses at delivering much needed access to long-term credit. With Byblos Bank's strong platform, proceeds of the loan will effectively support Lebanese businesses across the country."

Dr. Francois Bassil, Chairman and General Manager of Byblos Bank S.A.L., said: “We would like to thank Citi and OPIC for their support and commitment to the Lebanese economy in general and Byblos Bank in particular. Such confidence makes us even more determined to overcome any crisis encountered and maintain our leading role in servicing the Lebanese economy. This facility will help provide the financial capital that creates economic opportunities for businesses, entrepreneurs, SMEs, individual investors and for the global economy as a whole”.

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About Citi:
Citi, the leading global financial services company, has some 200 million customer accounts and does business in more than 100 countries, providing consumers, corporations, governments and institutions with a broad range of financial products and services, including consumer banking and credit, corporate and investment banking, securities brokerage, and wealth management. Major brand names under Citi's trademark red arc include Citibank, CitiFinancial, Primerica, Citi Smith Barney and Banamex. In Lebanon Citibank has been operating as a fully licensed branch since 1996. Additional information may be found at www.citigroup.com or www.citi.com.

About OPIC:
OPIC was established as an agency of the U.S. government in 1971. It helps U.S. businesses invest overseas, fosters economic development in new and emerging markets, complements the private sector in managing risks associated with foreign direct investment, and supports U.S. foreign policy. Because OPIC charges market-based fees for its products, it operates on a self-sustaining basis at no net cost to taxpayers. OPIC’s political risk insurance and financing help U.S. businesses of all sizes invest in more than 150 emerging markets and developing nations worldwide. Over the agency’s 35-year history, OPIC has supported $164 billion worth of investments that have helped developing countries to generate more than 732,000 host-country jobs and $13 billion in host-government revenues. OPIC projects have also generated $69 billion in U.S. exports and supported more than 264,000 American jobs.

Certain statements in this document are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act. These statements are based on management’s current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors. More information about these factors is contained in Citigroup’s filings with the Securities and Exchange Commission.

About Byblos Bank S.A.L.:
Established in Byblos-Lebanon in 1950, Byblos Bank Group is a leading universal financial institution focused on domestic and selective regional markets while striving to offer world-class service to customers, value-creation to shareholders, fulfillment to employees, and economic benefits to the communities in which it operates. Throughout more than 57 years of growth, Byblos Bank Group was able to expand with the largest best-spread network of 74 branches in Lebanon, and with a strategic presence in Europe and Africa. The Bank’s aggressive expansion plan was coupled with a sharp concern to apply best banking practices and operational excellence. In its strive for excellence, Byblos Bank oriented itself on the international banking community in general and benchmarked on the EU in particular and focused on implementing corporate Governance, Basel II requirements and other international standards.

Byblos Bank First Lebanese Bank to Hosts Workshop on Adoption of Principles of Corporate Governance within Lebanese Companies in collaboration with the Lebanese Transparency Association.

Achrafieh, Byblos Tower – March 2, 2007:
With the aim to draw awareness on the importance of good Corporate Governance in the Lebanese private sector, Byblos Bank Group hosted at its Headquarters on Friday March 2, 2007 the first workshop on the adoption of principles of Corporate Governance for Lebanese companies. Organized by The Lebanese Transparency Association (LTA) and the Lebanon Corporate Governance Task Force (LCGTF) in cooperation with Byblos Bank, the workshop is the first of its kind to be sponsored, co-organized and hosted by a Lebanese bank. The workshop gathered a panel of specialists in Corporate Governance and transparency issues from Byblos Bank, the LTA and LCGTF, along with company owners and eminent businessmen from the Lebanese private sector.

The workshop aimed at promoting the Lebanese Corporate Governance Code issued by the LTA and LCGTF in the private sector and encouraging its implementation by Lebanese businesses.

After a welcome note address by Mr. Nassib Ghobril on behalf of Byblos Bank and Mr. Gerard Zovighian on behalf of the LCGTF, the workshop was divided into the following major points:

His Excellency, Dr. Nasser Saiidi, Head of Hawkama - The Institute for Corporate Governance, explained how compliance with Corporate Governance (CG) principles recommended in this code can benefit the owners and managers of companies and increase transparency and disclosure by:

Maître Nada Abdelsater-Abusamra, author of the code, presented the code to the present board members, directors, and owners of companies, as well as to members of business associations. Emphasis was put on:

Mr. Michel Abchi, Chairman and CEO of ADMIC presented a case study on the corporate governance experience within his group.

Mr. Badri El Meouchi, the Co-Executive Director of LTA explained that in parallel to the launch of the Lebanese Code of Corporate Governance in June 2006, the LTA and LCGTF introduced a tool to guide and support Lebanese executives so they may realize the required adjustments of their business activities vis-à-vis the altering economic environment and international best practice, as well as fostering the adoption of the principles of accountability, transparency, and good governance within the Lebanese private sector.

It is to be noted that as a result of this workshop, several companies volunteered to become case studies in implementing this code.

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Established in Byblos-Lebanon in 1950, Byblos Bank Group is a leading banking and financial institution in Lebanon. As at December 2006 its total assets reached USD 8,243 Million, its customer deposits USD 6,270 Million and its total equity USD 763 Million. The Group was able to expand with the largest best-spread network of 73 branches in Lebanon, and a strategic presence in Europe and the MENA region.

The Lebanese Transparency Association (LTA) is a Non-Governmental Organization (NGO) that aims at curbing corruption in its various forms and promoting the principles of transparency and accountability, establishing the rule of law, and strengthening respect of basic rights as declared in international charters and the Lebanese Constitution.

Created in November 2002 by the Lebanese Transparency Association (LTA), the goal of the Lebanon Corporate Governance Task Force (LCGTF) is to build and maintain a coalition to promote good corporate governance in Lebanon. It is a permanent working group, consisting of prominent representatives from the Lebanese private and public sectors, as well as civil society.

Byblos Bank Africa Celebrates its Third Anniversary
A Gathering to Honor the OPEC Fund for International Development and the ICD

Achrafieh, Byblos Tower – February 06, 2007: On the occasion of the third anniversary for the establishment of Byblos Bank Africa– Khartoum, the Bank organized a dinner reception at the Hilton Khartoum, on Sunday 28 January 2007 in the honor of the OPEC (Organization of Petroleum Exporting Countries) Fund for International Development, represented by Dr. Suleiman J. Al-Herbish and the ICD (Islamic Corporation for Development) represented by Dr. Ali A. Soliman. Byblos Bank S.A.L. was represented by Mr. Semaan Bassil.

The dinner reception was also attended by officials, clients, personalities from the banking sector and many other Byblos Bank connections.

The relationship between Byblos Bank and the above-mentioned bodies dates back to the establishment of Byblos Bank Africa in 2003. In fact, the OPEC Fund and the ICD have joined in the capital with 20% and 10% respectively. This partnership brings to Byblos Bank Africa stability and credibility and provides Sudan with immediate benefit by injecting new capital into the country’s banking sector, thus helping it meet the financing requirements of major companies.

OPEC and ICD are two major international lending institutions concerned with the development of the private sector activities in developing countries, and they offer assistance in the form of loans for development projects and programs.

As for Byblos Bank Africa, it is currently playing a pioneering role in the development and the marketing of new banking products. It also intends to bridge the gap between the Sudanese living abroad and their families back home.

As the experience in Sudan has shown to be successful and encouraging, the Bank has decided to build its headquarters in Khartoum, at the crossing of Mek Nemr Street and Baladiyah Street, in addition to two other branches, the first in Amderman and the second in Al Bahri.

Through Byblos Bank Africa, the Group strives to continue its mission that consists of offering world-class services to its customers, value creation to its shareholders, fulfillment to its employees and economic benefits to the community in which it operates.

Byblos Bank Rewards Best Cars Sales for Used and New Car Loans
In recognition of their agents’ efforts in selling Byblos Bank Auto Loans

Achrafieh, Byblos Tower – January 17, 2007: - Byblos Bank organized on Wednesday January 10, 2007 a dinner reception to reward dealers of used and new cars who deal with the Bank, in recognition of their efforts in selling Byblos Bank Auto Loans in 2006.

A panel of managers and staff from various Byblos Bank branches attended the reception along with a group of cars salesmen and women from various dealers of used and new cars.

In his opening speech, Mr. Elie Abou Khalil, Head of Retail Product Department welcomed the guests thanking them for their efforts deployed in 2006 for making good returns in selling Auto Loans. He also highlighted that the success of the Bank in this field stems from their own success and vice versa. “This is why it is necessary to help each other in order to secure the sustainable growth of this sector”.

Mrs. Georgina Eid Dinar, Head of Consumer Loan Unit noted that 2007 features the tenth anniversary of the launching of Auto Loans in Lebanon “this sector witnessed during the last ten years a remarkable growth, a unique vitality, competition, and enthusiasm comparing to the other service sectors. It is based on a win-win situation partnership where all efforts are centered on client satisfaction”.
She added that: “Car salesmen should enjoy rare qualities such as good communication, marketing skills, a strong personality, a permanent smile and a remarkable presence … and thanks to the cooperation between the Bank and people enjoying these qualities, Byblos Bank could answer the demands and needs of its clients and offer them the best. Mrs. Dinar highlighted that the cooperation has been translated by a quantum leap reflecting a 30% raise of sales and a growth of 20% of the Auto Loan portfolio. However, these efforts were not limited to the profits and the increase of revenues but reached the national level since the car sector highly contributed to the economic wheel.

Valuable prizes were distributed to salesmen and agents who achieved the best selling performances in Auto Loans. Gifts varied between cash money and gifts. Toyota, represented by Mr. Ghassan Bejjani and Auto Kino represented by Mr. Habib Nehme and Mr. Milad Nehme maintained this year the first place and took the “Gold Wheel” prize.

EIB and Byblos Bank Group Sign a Commitment Agreement for the Establishment of Byblos Ventures (Holding) S.A.L.

Achrafieh, Byblos Tower – January 11, 2007: Byblos Bank Group signed today with the European Investment Bank (EIB) a commitment agreement for the establishment of Byblos Ventures (Holding) S.A.L., a Lebanese Holding, the first private equity project from Byblos Bank Group.

The size of Byblos Ventures will be USD 20 Million upon inception, foreseen to increase to up to a maximum of USD 50 Million within the first year. At the time of its establishment, Byblos Ventures will have as main shareholders, Byblos Bank Group with a 50% equity stake (through Byblos Invest Bank S.A.L.) and the EIB with 25%. The subscription to the remaining capital will target a select group of institutional investors wishing to partner up in this ambitious project.

In his opening speech given during the press conference held at Byblos Tower on this occasion, Dr. François S. Bassil, Chairman and General Manager of Byblos Bank S.A.L. stated that this initiative aims at achieving a certain number of national and economic objectives, namely a) to serve the needs of the Lebanese economy by contributing to the upgrade of its industrial and services organizations; b) to develop and modernize the management capabilities of existing companies and help transform them from individual, traditional or family-oriented businesses to modern institutions in order for them to become highly competitive in local, regional and international markets; c) to create job opportunities that will reduce unemployment and brain drain.

Bassil highlighted that this agreement is the second accomplishment within a year stemming from the strategic cooperation between Byblos Bank Group and the EIB, the first having been the USD 60 Million Global Loan Agreement signed on February 8, 2006. Work on the Byblos Ventures project started in early 2005 whereby a technical team comprising both parties put in place the organizational structure. The EIB will keep providing technical assistance for a further 18 months as of February 2007.

Mr. Paul Chucrallah, Assistant General Manager of Byblos Invest Bank S.A.L., declared that the aim of Byblos Ventures is to invest in Lebanese and Arab companies (namely in Syria, Jordan and Egypt) operating in most economic fields to the exception of banking and real estate companies.

In general, the size of an individual investment will vary between USD 1 and 2 Million, with a maximum of 10% of the size of Byblos Ventures, the objective being to acquire strong minority stakes in the targeted companies.

It is to be noted that the first phase of Byblos Ventures spreads over 3 to 5 years and covers the acquisition of equity participations, generally through the subscription to the capital of the chosen companies. The second phase ends between the 10th and 12th year and covers the progressive exits from the said investments.

From the EIB, Mr. Philippe de Fontaine Vive, Vice President commented: “As a longstanding partner of Lebanon, with financial cooperation going back 30 years, the European Investment Bank stands ready to continue its commitment to the country at this difficult time by supporting the reconstruction and recovery process and underpinning the Lebanese government’s reform agenda. Byblos Ventures will contribute to ease financing constraints that exist for promising private-sector small and medium sized enterprises (SMEs). Providing risk capital will also help develop an important missing component of the local financial sector”.

Byblos Bank Syria Officially Inaugurates its Branches
4 Branches Opened in 10 Months: 2 in Damascus, 1 in Homs and 1 in Aleppo

Damascus, December 2006: Byblos Bank Syria S.A. celebrated the official inauguration of its Headquarters and branches in Syria during a cocktail ceremony held in November 2006 at the Four Seasons Hotel - Damascus in the presence of a selection of official personalities from the diplomatic, political, business and economic Syrian sectors. Were also present Lebanese representatives from Byblos Bank S.A.L.

Within 10 months from its presence in Syria, Byblos Bank Syria has opened 4 branches: 2 in Damascus, one in Homs and another one in Aleppo. This expansion move confirms the Bank’s objectives aiming at being one of the most active commercial banks in Syria, staying close to its customers regardless of their place, and contributing efficiently to the growth of Syria and the wellbeing of its people especially after the country had taken important steps towards encouraging the private sector especially the banking sector.

In his speech, Mr. Semaan Bassil, Chairman and General Manager of Byblos Bank Syria declared that: “the Bank strives to be effectively present in all districts”. Byblos Bank Syria had deployed efforts to inaugurate 4 branches in Syria in 10 months: 2 in Damascus (August 2006), one in Homs (November 2006) and another one in Aleppo (November 2006). Bassil continued saying that: “Byblos Bank is committed to contributing to the development of the private sector in Syria in order to assist the country in exploiting all its agricultural, industrial, and touristic potentials”.

Byblos Bank Syria is owned and managed 41.5% by Byblos Bank S.A.L. (Lebanon). A 51% stake was acquired by Syrian investors. The OPEC (Organization of Petroleum Exporting Countries) Fund for International Development has joined in the capital with 7.5%. This partnership falls in line with Byblos Bank’s strategy to bring along added value institutional partners; this partnership will bring to Byblos Bank Syria potentially long term funding for needed important projects. Byblos Bank Syria S.A. provides a range of banking services. Based on the expertise and know how of Byblos Bank S.A.L., Byblos Bank Syria will be offering a range of retail products and corporate services to answer the needs of Syrian nationals.

In a very short time, Byblos Bank Syria proved that, by entering Syria, it can play an efficient role in providing the adequate business environment and in supporting the youngsters and different classes of the society by entering the Syrian market which reflects the principles it holds and strives to achieve with the society in general and the youngsters in particular in order to remain Your Bank for Life.

Byblos Bank signs Execution Contract for the Contruction of the Fidar Bridge
Currently Ongoing Works: Formwork Preparation, Ordering of Long Lead Material, Piles and Foundations

Byblos Tower, Ashrafieh, November 6, 2006: On Monday 30 October 2006, the Chairman and General Manager of Byblos Bank S.A.L., Dr. François S. Bassil, signed the Construction Contract with Mr. Elie Salwan, owner of the Bureau D’études et Travaux Hydrauliques-Electriques, prepared by Dar Al Handassah (Shair and Partners), represented by Mr. Riad Mneimné, to rebuild the Fidar Bridge destroyed during the war of July 2006. It is noted that Byblos Bank has assigned La Constructa S.A.L to represent it for the project.

The Fidar Bridge was officially classified as a completely destroyed bridge, which required a full new design. The new design caters for the much heavier truck axle loads that exist currently in Lebanon and is in accordance with the latest international standards with earthquake resisting features. Furthermore, it is the design that requires the least execution period from the various designs evaluated, including the original one.

The overall construction cost is estimated at USD 4 million, and will take around 11 months; thus the inauguration of the bridge is expected to take place in August 2007.

Below is the Fidar Bridge Timeline:
-Government approved Byblos Bank’s permission to donate the Reconstruction of Fidar Bridge: 16 August 2006 (Decree No. 84/2006).
- Contract with Dar Al-Handasah (Shair and Partners) signed: 28 August 2006 after evaluation of all offers.
- Topographical Survey started: 29 August 2006.
-Contractor started mobilization on site (removal of demolished bridge- soil investigation): 9 September 2006
- Signed Memorandum of Understanding (confirming verbal Go-Ahead) completed between Byblos Bank and CDR on 15 September together with written approval of concept design, consultant and contractor.
- Works currently ongoing related to formwork preparation, ordering long lead material, piles and foundations, etc. and more site activities expected in coming weeks.
-Expected completion date: 9 August 2007. 11 months for design and construction starting 9 September 2006. The completion of one of the ways is expected earlier.

Byblos Bank to Rebuild Fidar Bridge in 11 Months
Contractor on-Site Since September 9

Byblos Tower, Ashrafieh, September 13, 2006: In an official joint communiqué, Byblos Bank and the Council for Development and Reconstruction (CDR) announced today that the reconstruction of Fidar bridge will take 11 months as of September 2006. The overall construction value is estimated at about USD 4 Million.

The Prime Minister had previously approved by his decision No. 84/2006 dated 16/8/2006 the in kind donation contributed by Byblos Bank comprising the study and construction of Fidar Bridge.

Byblos Bank, represented by La Constructa S.A.L., and after consultation with the Council for Development and Reconstruction, appointed the consultant Dar Al Handasah Consultants (Shair & Partners) S.A.L. to provide consultancy services related to the detailed design and supervision during construction.

At a second stage, and according to the Memorandum of Understanding signed between CDR and Byblos Bank requiring the selection of a contractor pre-qualified at CDR for execution of Roads and Highway Projects over 20 Million USD, Byblos Bank appointed the contractor Bureau D’études et Travaux Hydrauliques-Electriques (Elie Selwan) for the construction of the Fidar twin bridges (Northbound and Southbound). The contractor was mobilized onto the site on September 9, 2006. Even though the construction period for the whole project is set for 11 months, it is expected to have one of the twin bridges be opened for traffic before the end of the construction period. The design approved for the reconstruction of the bridge features state-of-the-art technology and is characterized by fast track construction schedule.

Byblos Bank has pledged the reconstruction of the Fidar bridge to re-establish the link between the North and all other Lebanese regions and restore the Lebanese economy. This initiative falls within the Bank’s vision to be everybody’s Bank for Life and spread life where hope lacks. Byblos Bank’s commitment reaches Lebanese expatriates whose heart is still beating with Lebanon’s and is aimed at encouraging them to come back home as soon as possible, no matter what. It is a pledge of hope at a time when we are going through more changes than ever before and when it is essential to think ahead and be part of Lebanon’s ongoing reform.

First Year Performance of ELN: 9.02% Locked

Launched by in summer 2005, the ELN is entirely conceived by Byblos Bank and stretches over 5 years; The denomination is of USD 1000, the minimal subscription being USD 10 000. The Notes offer an 8% coupon each year for the first 4 years distributed every six months. On Maturity date (the fifth year), the investor receives at least 95% of the initial investment in addition to 100% of the positive performance of the best year of a portfolio of major equities.

The performance of the underlying portfolio for the first year locked at 9.02%; the redemption at the fifth year will reach 95% + 9.02% as a minimum.

The portfolio of Major equities comprises the following 10 companies: Bank of America, Deutsche Telekom, Tokyo Electric Power Co, Nissan Motor Co, Crédit Agricole, Casino, Nestlé, Toyota Motor Group, Procter & Gamble, and Total.

The Bank had previously closed the subscription several days prior to the official closing date given the number of subscriptions received that exceeded the expected amount (US Dollars 55 million). The importance of this program lies in that it guarantees to the investors the initial capital and a potential return while the said investors bear no loss due to the fluctuation of stocks.

Kindly check the attached Report for further technical information.

Reporting Byblos 5 Years Equity Linked Note September 1, 2006.pdf

Byblos Bank's vision Makes a Change

It takes vision to make a change,
Will to bring ideas to life,
Determination to improve the quality of many lives,
And teamwork to make it happen…
That’s why, we, at Byblos Bank, always look forward to
Bridging the gap between our lives today and our lives tomorrow.

At a time when we are going through more changes than ever before, It is essential to think ahead and be part of this ongoing reform. Byblos Bank has pledged the reconstruction of Al Fidar bridge to re-establish the link between the North and all other Lebanese regions, restore our economy and keep us going. As of this week, be part of the future and check Byblos Bank message to Lebanon everywhere on billboards, unipoles, press ads, and TV spots.

The Council of Ministers Approves Byblos Bank's in Kind Donation to Rebuild the Fidar Bridge

Byblos Bank Tower – August 29, 2006:
Communiqué from the Office of Dr. Francois S. Bassil, Chairman and General Manager of Byblos Bank:

“The Lebanese Council of Ministers granted Byblos Bank its approval for the in kind donation allocated to rebuild the Fidar bridge. Byblos Bank has commissioned Dar Al Handasah Shair & Partners to carry out the requested studies and designs in coordination with the concerned ministries and official bodies. The Bank will then designate a contracting company to take care of the execution the soonest possible.

This initiative is aimed at supporting Lebanon in an effort to re-establish communication among the Lebanese from different regions; such a step confirms the Bank’s commitment to fulfilling its national development role, especially in the hard times Lebanon is going through.

It is worth noting that Byblos Bank has always contributed to the reconstruction of Lebanon following the several wars that hit the country:

Following the Israeli attack on Lebanon in April 1996, Byblos Bank had granted a million dollar donation, in contribution to the reconstruction of the destroyed infrastructure,

After the assassination of Prime Minister Rafik Hariri in February 2005, Byblos Bank efficiently contributed to the national campaign aimed at reviving the downtown, the heart of Lebanon,

In September 2005, Byblos Bank allocated a million dollar donation to repair the damages that affected the residences and shops in Ashrafieh-Geitawi following the terrorist car explosion,

And today, after the cessation of the war in Lebanon, the Board of Directors of Byblos Bank has decided to rebuild, on its own expenses, the Fidar bridge- Byblos, that was destroyed by the Israeli bombs in July 2006. Byblos Bank is always committed to Lebanon and the Lebanese.” Byblos Bank Your Bank for Life

Byblos Bank Europe Remercie le Gouvernement Belge

RAPATRIES DU LIBAN - REMERCIEMENTS

Le Liban affronte à nouveau un épisode tragique de son histoire.

Dans ces circonstances particulièrement douloureuses, l'intervention rapide et efficace du Gouvernement belge a permis de rapatrier dans les meilleures conditions possibles bon nombre de citoyens et résidents de ce pays. Tous les témoignages que nous avons recueillis saluent la qualité de l'aide apportée.

Au nom de toutes ces personnes rapatriées, clients et amis du Liban, nous aimerions remercier vivement le Gouvernement belge, son ambassade à Beyrouth et le personnel de la Force Aérienne pour le soutien et la sympathie manifestés durant ces moments dramatiques.

BYBLOS BANK EUROPE
rue Montoyer, 10 bte 3 - 1000 Bruxelles

Press Release on Byblos Bank Syria signature of a partnership agreement with European Investment Bank:

Byblos Bank Tower – May 8, 2006 – Byblos Bank Syria finalized on 27/04/2006 at its temporary headquarters at the Meridien Hotel – Damascus, with the European Investment Bank (EIB), the Syrian Bank of Commerce and the Unit of Finance Management for Small and Medium Syrian Enterprises FMU, the signing of a partnership agreement in the program of financing long-term development projects, submitted to the Syrian Arab Republic by the EIB, amounting to EUR 40 million. This is the first agreement of its kind in Syria and it comes within the Euro – Mediterranean partnership program.

In order to strengthen the special relation between Byblos Bank S.A.L. (Lebanon) and the European Investment Bank (EIB), this latter has chosen through this agreement Byblos Bank Syria, to be the first Syrian bank to support the growth of the Syrian economy and to support the new job opportunities in all its productive sectors. This is achieved through its participation in supporting the finance of investment projects in these sectors, up to 50%.

This finance agreement will be beneficial to the Bank’s clients, owners of small and medium enterprises, as well as to any other Syrian citizen fulfilling the loan criteria, in order to undertake projects in various productive and service sectors that meet the following conditions:

- Fixed assets not exceeding EUR 75 million.
- Number of employees not exceeding 500.
- Value of the loan not less than EUR 100 thousand.

The sectors mainly concerned in this regard are: industry, agricultural industry, tourism, services (except for the local and foreign trade, industry, real estate and car trade.)

The eligible projects that can benefit from this agreement are those:

1.       Aimed at developing the institutions, improving their techniques and rehabilitating them.
2.       Needing long or medium term loans to achieve this goal.
3.       Proving to be feasible on both the financial and economic levels.

It is worth noting that the duration of the granted loans, by virtue of this program, varies between 4 and 5 years. The premiums are to be settled semi-annually with a grace period up to one full year.

The management of Byblos Bank Syria hopes that all the economic sectors that need an important investment in its fixed assets would benefit from this agreement, looking forward to providing them with reasonable conditions and medium to long terms especially the industrial sector that has a big potential for contributing efficiently in the economic and social development in the country which would promote the competitiveness of the Syrian industry.

Byblos Bank Syria would like to thank herewith the President of the Board of Directors at the Commercial Bank of Syria, Dr. Doureid Dargham, as well as the European Investment Bank represented by Mr. Nizar Ibrahim, for choosing Byblos Bank Syria to be the first private bank to execute this agreement. This shows its trust in our bank, in its experience and financial standing. We would like as well to call upon all the potential Syrian investors and owners of development projects especially in the industrial and services sectors, to benefit as soon as possible from this financing opportunity.

Press Release on the Financial Performance of Byblos Bank SAL based on the Unaudited and Consolidated Financial Statements as at the 31st of March 2006:

Profitability

Byblos Bank SAL reported an increase in net income of 43.1% which stood at LBP 24.5 billion (US$ 16.2 million) at the end of March 2006 compared to LBP 17.1 billion (US$ 11.3 million) at the end of March 2005. Return on Assets (ROA) and Return on Equity (ROE) stood at respectively 0.85% and 9.3% at the end of March 2006.

This improved performance was due to the following:

Enhanced management of the bank’s assets and liabilities which resulted in an increase of interest margin from 1.55% at the end of March 2005 to 1.86% at the end of March 2006.

Revenues from non traditional lending activities (i.e. letters of credit, banking services, securities trading) has increased by 61%, and has constituted 37.4% of total revenues up from 33% in the previous year.

Operating cost efficiency (cost-to-income ratio) has improved from 63.9% at the end of March 2005 to 54.9% at the end of March 2006.

Growth

Total assets stood at LBP 11,742 billion (US$ 7.8 billion) at the end of March 2006 recording an increase of 12.5% compared to the last year period and compared to an increase of 7% in the Lebanese banking sector.
Customer deposits stood at LBP 8,762 billion (US$ 5.8 billion) at the end of March 2006 recording an increase of 7.7% compared to the last year period and compared to an increase of 10% in the Lebanese banking sector.
Customer loans stood at LBP 2,377 billion (US$ 1.6 billion) at the end of March 2006 recording an increase of 19.3% compared to the last year period and compared to an increase of 3.5% in the Lebanese banking sector. The bank maintained the high coverage of nonperforming loans by provisions and as result net nonperforming loans represented only 0.4% of gross loans at the end of March 2006.

Total capital (tier one and tier two) amounted to US$ 801 million at the end of March 2006 and represented 10.3% of total assets.
The bank maintained high liquidity ratios where liquid assets represented a high level of 75% of total assets at the end of March 2006 and immediate liquidity in foreign currencies represented 60% of FCY deposits.

Press Release Byblos Bank S.A.L. :

EIB Grants Byblos a Credit Line of USD 60 Million.

Byblos Bank has become the first private bank in the Near East and the second in the Mediterranean Partner Countries to have benefited from a Global Loan Agreement without State Guarantee–under the EIB-FEMIP program which has been sponsored by the European Union.

Bank Head Office – Achrafieh – February 8th, 2006: The European Investment Bank (the EIB) finalized on January 23rd, 2006 the signing and execution of the first Global Loan (GL) agreement without State Guarantee in the Near East- with Byblos Bank for an amount of USD 60 million.

In his opening speech given during the press conference held at Byblos Tower on this occasion, Dr. François S. Bassil, Chairman and General Manager of Byblos Bank S.A.L. stated that the overall objective of the agreement is to promote economic growth and sustainable employment in all the productive sectors of the Lebanese economy by co-financing through the Global Loan sub-projects that the EIB could not reach directly. The Byblos GL is intended to be on-lent to fund eligible sub-projects undertaken by eligible promoters in eligible sectors.

He highlighted that: “All private sector companies in Lebanon are eligible promoters. They represent the Small and Middle Enterprises “SMEs” having less than 500 employees and Net Fixed assets less than EUR 75 million. Moreover, the eligible sectors are the productive economic sectors, i.e. Industry, Tourism, Health, Higher Education, IT and Knowledge-Based, Energy, and Telecommunications.

The agreement stipulates that: All sub-projects that a) are new or involve expansion, modernization or rehabilitation and require medium to long term financing (above 5 years) ranging between USD 100,000 and USD 15 million; b) are compliant with Lebanese environmental legislation and with EU-directives as may be appropriate; c) started three years and a half ago and were completed not more than six months ago; d) will be implemented during the course of three years and e) are economically, technically and financially sound; are eligible.

The Byblos GL is intended to finance 50% of the following eligible costs a) the purchase of tangible assets, land or intangible assets which are directly associated with the sub-project b) the permanent increase in working capital required which shall be adequately demonstrated and shall generally not exceed 20% of the eligible sub-project cost and c) the refinancing of used or existing fixed assets (land, buildings, plant and equipment) which have not already been financed by EIB or by Byblos Bank.

The remaining 50% of the above eligible costs will be financed by Byblos provided the leverage and the debt service ratios are still acceptable.

It is worth mentioning that the Byblos GL is unique given the fact that a) it is the first loan with a maturity of 10 years ever granted to the private sector in Lebanon by any of the International Financial Institutions (“the IFIs”); b) it is given at a fixed rate pricing and c) it benefits all sectors.

The Byblos GL is the first product of the strategic partnership with the EIB under its FEMIP (Facility for Euro-Mediterranean Investment and Partnership program. Currently, the EIB is also providing Byblos with technical assistance for the set up of its private equity investment company -to be established in 2006- with a capital of USD 30 million that will be invested into the capital of well identified local SMEs in order to strengthen their equity base and their growth potential. We would encourage all SMEs –interested in such type of risk capital financing to come forward as we have started already warehousing potential transactions.

As for Mr. Fadi Abboud, President of the Association of Lebanese Industrialists, he commended Byblos Bank for being the first private bank in the Near East and the second in the Mediterranean Partner Countries to have benefited from a Global Loan Agreement without State Guarantee. The mentioned long term facilities from Byblos Bank will boost investments by giving the industrialists the opportunity to expand their productivity, create new job openings, and further promote competition.

As the President of the Orientation Committee for the Euro-Lebanese Center for Industrial Modernization (ELCIM), Mr. Abboud declared: “ELCIM and Byblos Bank have always worked in close cooperation. I encourage Byblos Bank and ELCIM to work together in order for the Industrialists to benefit from the EIB special loan and from other Byblos loans”.

Press Release Byblos Bank S.A.L. :

Byblos Bank Syria to Open New Branches

Byblos Bank Syria Board of Directors Meets and Approves 2006 Business Plan

Byblos Bank Head Office – Achrafieh – February 3rd, 2006: The Board of Directors of Byblos Bank Syria met on January 26 to approve the Bank’s business plan for 2006. Byblos Bank Syria (BBS) had become fully operational since December 2005 and is the sixth private bank to set up operations in Syria following legislation to reform and modernize the banking sector. It aims at becoming a leading provider of financial services in the potential growing economy of Syria.

Byblos Bank Syria is owned and managed 41.5% by Byblos Bank S.A.L. (Lebanon). A 51% stake was acquired by Syrian investors. The OPEC (Organization of Petroleum Exporting Countries) Fund for International Development has joined in the capital with 7.5%. This partnership falls in line with Byblos Bank’s strategy to bring along added value institutional partners; this partnership will bring to Byblos Bank Syria potentially long term funding for needed important projects.

The Bank’s Head Office, to be completed in May 2006, will be located in the strategic Abou Remanneh district along with a second branch in Mezze. In the meantime, operations are being carried out from the temporary offices at Le Meridien Hotel, Damascus. Moreover, Byblos Bank Syria’s expansion strategy includes also the opening of other new branches in 2006 in different provinces.

Byblos Bank Syria S.A. provides a range of banking services. Based on the expertise and know how of Byblos Bank S.A.L., Byblos Bank Syria will be offering a range of retail products and corporate services to answer the needs of Syrian nationals.

Press Release on the Financial Performance of Byblos Bank S.A.L. based on the Unaudited and Consolidated Financial Statements as at the 31st of December 2005

Profitability

Byblos Bank generated for the year 2005 a record net profit of US$ 69 million or an increase of 28.5% over the previous year. Return on Assets (ROA) and Return on Equity (ROE) stood at respectively 0.95% and 12.7% at the end of December 2005

This improved performance was due to the following:

1- Enhanced management of the bank’s assets and liabilities which resulted in an increase of interest margin from 1.6% at the end of 2004 to 1.7% at the end of 2005.

2- Revenues from non traditional lending activities (i.e. letters of credit, banking services, securities trading) has increased by 47.8%, and has constituted 41.7% of total revenues up from 36.5% in the previous year. Around 30% of this activity comes from the international operations handled out of Beirut and from our branches/subsidiary banks in Sudan, Paris, Brussels, Cyprus and London.

3- Operating cost efficiency (cost-to-income ratio) has improved from 57.5% at the end 2004 to 51% in 2005, and we believe that this trend will continue to improve due to more centralization of processes inside the bank and due to the handling of a larger volume of transactions with no important increase in expenses.

Growth

Total assets stood at LBP 11,391 billion (US$ 7.6 billion) at the end of December 2005 recording an increase of 8.5% compared to the last year period and compared to an increase of 0.6% in the Lebanese banking sector. It should be noted that 55% of the growth in total assets was driven by the foreign operations, and the assets of foreign subsidiaries represented 11.6% of consolidated assets compared to 8.9% at the end of 2004.
Customer deposits stood at LBP 8,493 billion (US$ 5.6 billion) at the end of December 2005 recording an increase of 2.8% compared to the last year period and compared to an increase of 0.5% in the Lebanese banking sector. Customer deposits of foreign subsidiaries represented 5.1% of consolidated customer deposits at the end of 2005 the same as in 2004.
Customer loans stood at LBP 2,241 billion (US$ 1.5 billion) at the end of December 2005 recording an increase of 10.8% compared to the last year period and compared to an increase of 3.5% in the Lebanese banking sector. A high level of 67% of the growth in the loan portfolio was driven by foreign operations, and the loan portfolio of foreign subsidiaries represented 15.3% of consolidated loans compared to 10.9% at the end of 2004.
The bank maintained the high coverage of nonperforming loans by provisions and as result net nonperforming loans represented only 1% of gross loans at the end of December 2005.

Total capital (tier one and tier two) amounted to US$ 799 million at the end of December 2005 and represented 10.6% of total assets.
The bank maintained high liquidity ratios where liquid assets represented a high level of 76.2% of total assets at the end of December 2005 and immediate liquidity in foreign currencies represented 59% of FCY deposits.

Future Outlook

Byblos Bank continues to be the leader in consumer banking (i.e. market share ranges between 15% and 20% in the different product ranges). Byblos is also a major lender to large corporations which represents more than 50% of its loan portfolio.

Very recently Byblos Bank has embarked into a program to grow its capital market and securities trading/brokerage activities, and has just obtained a seat on the Beirut Stock Exchange. With the largest branch network in the country and one of the largest clientele bases, the potential revenue from these activities will be an additional contribution to the bank total profits.

Strategically the bank will continue to expand its network in the existing high growth/profitable markets of Sudan (opened in September 2003) of Syria (opened in December 2005) and hopefully with the new operations in Algeria during 2006. Other outside markets are also being looked into.

As a result of the international activities the profitability share of the international based activities has increased to 13% of the total group profit from a low 3% in 2004, and this share will only increase over time.

Byblos Bank will be soon listing all its shares on the Beirut Stock Exchange with a view to ensure larger liquidity is available to a now larger institutional and private investor base.

Press Release Byblos Bank S.A.L. :

Love is not just a dream ...it is a story that comes true with Byblos Bank!

Byblos Bank Receives Soon-to-Be-Wedded at Wedding Follies

Byblos Bank Head Office – Achrafieh – January 16th, 2006: It is believed not very conventional for a bank to take part in a wedding exhibition, however, this year, Byblos Bank was strongly present at the Wedding Folies 2006 to prove the opposite. If you are/were on a visit to the Wedding Folies, there is a 75% change that you are to get married soon or at least interested in the matter… If so, there’s so much to think about: the house, the invitations, the catering, the flowers, the dress, the jewelry, the decoration, the giveaways, the wedding list, and much much more … A real challenge to take up! A challenge that requires a solid financial partnership, a challenge that wants a Bank for Life, a life that needs Byblos Bank.

This is the message conveyed by Byblos Bank at the Wedding Folies 2006 through a wide array of retail programs especially designed to meet your wedding requirements. Besides the traditional loans covering Wedding, Housing, and Personal needs, new this year is the Wedding Account to help you start your shared life the right and easy way. It gives you the opportunity to open a Byblos Bank Wedding Account for you to use and for your guests to deposit their money gifts at any of our 74 branches in Lebanon. As of now, you can open a joint wedding account with your life partner and start from now thinking of your future.

“Our presence at Wedding Folies goes within the Bank’s mission to be a bank for everyone wherever they are. For every life stage you can find the programs that suit you best and that serve your aim. Whether you want a loan, a bancassurance coverage for you and your family or even investment options, we have the answer for you”, declared Isabelle Naoum Head of PR & Communication Unit. Once again, Byblos Bank showed its true commitment to the society and its future generation by fulfilling its motto: Byblos Bank: Your Bank for Life.

Press Release Byblos Bank S.A.L. :

Byblos Bank S.A.L. Holds an Extraordinary General Assembly on 16/01/2006 And Decides to list all Its Shares on Beirut Stock Exchange

Byblos Bank Head Office – Achrafieh – January 16, 2006: Reference to the Extraordinary General Assembly of Byblos Bank S.A.L. held on January 16, 2006 to decide on the listing of all the Bank’s shares on Beirut Stock Exchange, the Bank issued the below statement:

Byblos Bank was one of the first banks to list part of its shares (30%) on Beirut Stock Exchange in 1998. Back then, the capitalization size of Beirut Stock Exchange was around USD 2,5 Billion and the size of the daily trading was less than USD 1,5 Million.
At the moment, the capitalization of the Stock Exchange is around USD Billion 6 and the size of the daily trading more than USD 14 Million to reach occasionally USD 30 Million. The number of companies with shares listed on Beirut Stock exchange is expected to increase which will be positively reflected on the Stock Exchange capitalization and the size of the daily trading within suitable conditions on the local and regional levels.
Byblos Bank has at the moment 3 categories of shares: common, preferred, and priority shares. Each category has some shares listed on the Beirut Stock exchange and some other unlisted. The pricing of the shares occurs within the same category in different prices knowing that the shares of each category enjoy the same rights and obligations. This means that the market capitalization of Byblos Bank is distributed among 6 kinds of shares which make the trading and pricing of shares a difficult and complicated task.

Therefore, the Extraordinary meeting of shareholders’ has decided on the listing of all Byblos Bank’s shares for trading on Beirut Stock Exchange for the following reasons:

1- Increase the trading volume of Byblos Bank shares.

2- Take advantage of the increasing activity on the Beirut Stock Exchange

3- Take advantage of the excess in liquidity in the regional market that is invested in financial instruments listed on Beirut Stock Exchange.

4- Simplify the trading and pricing of Byblos Bank shares.

It is worth mentioning that the effective listing of all Byblos Bank shares on Beirut Stock Exchange will be subject to the regular legal and administrative procedures which might require a two-week period.

Press Release on the successful closing of Byblos Bank's subscription to the Capital Increase and its decision to list all its Shares on Beirut Stock Exchange as at the 10th of December 2005

Byblos Bank Head Office – Achrafieh – December 10, 2005: Reference to the extraordinary General Assembly of Byblos Bank S.A.L. shareholders held on Saturday December 10, 2005 to discuss the capital increase of the bank in light of the subscription opened on 21/10/2005, the Bank issued the below statement:

“Byblos Bank announces the success of the subscription to the priority shares launched on October 21, 2005. The subscription was specifically addressed to the Bank’s present shareholders. The amount of the subscription reached 164 million US Dollars which raised the private funds of the Bank to approximately 700 million US Dollars. The subscription was characterized by the following:

1- Complete Transparency: Byblos Bank appointed BLOMINVEST Bank S.A.L. to organize the trading in the subscription rights, book building, and price fixing. This initiative is considered a leading step in the Lebanese market and conveys a serious strive to abide by to the principles of transparency and objectivity in the capital market.

2- Investors: A relatively high number of local and Arab investors took part in the capital increase along with other European investors. This is an additional indicator of the international status Byblos Bank enjoys and the trust people have in its future growth opportunities.

A need for a strong capital base is of prime importance for Byblos Bank as it is expanding its presence in the MENA region and reinforcing its presence in Europe. Therefore, three years ago, Byblos Bank set up a strategy aimed at focusing on new markets outside Lebanon. This strategy of expansion goes along with the Bank’s optimization of profit and risk diversification. Byblos Bank is present in Europe (Brussels, Paris, and London) under Byblos Bank Europe S.A. and in Cyprus through an International Banking Unit (IBU). The Bank further expanded its presence in the MENA region through the opening of an affiliated bank in Khartoum, Sudan in 2003. In 2004, Byblos Bank was granted a license to open a Bank in Syria (started operations in the last quarter of 2005) and another license to open a representative office in Abu Dhabi, the UAE (set to start operations during the last quarter of 2005). Lately, Byblos Bank has also acquired a 51% stake in an Algerian bank.

On a final note, it is worth mentioning that the Extraordinary General Assembly took an extra-agenda decision regarding the listing of all Byblos Bank shares (common, preferred, and priority shares) on the Beirut Stock Exchange as of the first quarter of 2006. A general assembly is expected to be held in January 2006 in order to confirm the above decision regarding the bank’s shares.

Press Release on the Financial Performance of Byblos Bank S.A.L. based on the Unaudited and Consolidated Financial Statements as at the 30th of September 2005

Profitability
Byblos Bank SAL reported an increase of 23.4% in net income which stood at US$ 44.6 million at the end of September 2005 compared to US$ 36.1 million at the end of September 2004. Return on Assets (ROA) and Return on Equity (ROE) stood at respectively 0.84% and 12.6% at the end of September 2005.

The improvement in profitability during the 3rd quarter of 2005 resulted from an enhanced control over interest rates paid on deposits coupled with an increase in return on the Bank US$ liquid investments resulting from international rate increases in the US$. Consequently, net interest margin increased from 1.58% at the end of June 2005 to 1.68% at the end of September 2005.

Non-interest income increased by 68% and stood at US$ 65.3 million at the end of September 2005 compared to US$ 38.9 million at the end of September 2004. The increase in non-interest income was driven by commissions on trade finance activities as well as trading activity on financial instruments. Non-interest income represented 43% of total operating income at the end of September 2005 compared to 34% at the end of September 2004 and which falls within the Bank’s strategy to strengthen the share of non-interest income as percentage of total income.

Cost-to-income ratio, a measure of the Bank’s efficiency, stood at 53.4% at the end of September 2005 compared to 64% at the end of September 2004.

Growth
Total assets stood at LBP 10,801 billion (US$ 7.2 billion) at the end of September 2005 recording an increase of 7.4% compared to the last year period and compared to an increase of 5% in the Lebanese banking sector.

Customer deposits stood at LBP 8,453 billion (US$ 5.6 billion) at the end of September 2005 recording an increase of 3.7% compared to the last year period and compared to an increase of 4.7% in the Lebanese banking sector.

Customer loans stood at LBP 2,100 billion (US$ 1.4 billion) at the end of September 2005 recording an increase of 13.1% compared to the last year period and compared to an increase of 5% in the Lebanese banking sector.

The Bank maintained the high coverage of nonperforming loans by provisions and as result net nonperforming loans represented 1.2% of gross loans at the end of September 2005.

Total capital (tier one and tier two) amounted to US$ 575 million at the end of September 2005 and represented 8.0% of total assets. The Bank is currently running the official period for the subscription to the capital increase and is looking to raise US$ 164 million which will bring total capital to US$ 739 million.

The Bank maintained high liquidity ratios where liquid assets represented a high level of 76% of total assets at the end of September 2005 and immediate liquidity in foreign currencies represented 55.9% of FCY deposits.

Recent Developments
Byblos Bank Syria was registered on the 20th of October 2005 in the Syrian commercial register under number 14497 and is expected to be listed on List of Syrian Banks by mid November 2005. Byblos Bank Syria will start its operations by mid November 2005, with a capital of US$ 40 million and is owned; 41.5% by Byblos Bank SAL, 7.5% by OPEC Fund and 51% by individual Syrian shareholders.

The eminent opening of Byblos Bank Syria will contribute further into the profits of the Bank, as it is the case with the good performance of Byblos Bank Africa which was opened during 2003.

Press Release on the opening of Byblos Bank S.A.L. 's subscription to the Capital Increase on October 21st, 2005 and its closing of subscription on November 21st, 2005

Reference to the extraordinary general meeting of Byblos Bank SAL shareholders’ held on the 12th of May 2005 and to the authority given to the Board of Directors (BOD) by the said meeting, the BOD convened on the 14th of October 2005 decided to call for the subscription to the capital increase of Byblos Bank SAL from LBP / 247,228,467,600/ to LBP / 494,456,935,200/ by issuing new shares (priority shares as stipulated in article 109 of Trade Law) and determined the opening date on the 21st of October 2005 and the closing date on the 21st of November 2005.

Based on the above, the trading in Byblos Bank SAL listed common shares, on Beirut Stock Exchange, will be ex-subscription right starting the 21st of October 2005 (i.e. the shares will trade without the subscription right starting the 21st of October 2005). The subscription rights will trade separately from the shares, outside Beirut Stock Exchange, on a daily basis during the subscription period (from the 21st of October 2005 and up to the 21st of November 2005).

Byblos Bank SAL appointed BLOMINVEST Bank SAL to organize the trading in the subscription rights, book building, price fixing and funds clearing in order to safeguard the shareholders’ interests and ensure equitable and fair treatment.

Byblos Bank had issued a detailed convocation for the subscription to the capital increase whereby it gave information pertaining to the capital increase. For more information, please contact Mr. Alain Wanna: + 961 1 334 920 and + 961 3 358 700.

Press Release Byblos Bank S.A.L. :

Byblos Bank Africa Acquires a Land for Future Head Head Office in Khartoum

1285m2 to Host the New Head Office in 2008

Byblos Bank Head Office – Achrafieh – November 29th, 2005: Byblos Bank has recently announced that Byblos Bank Africa Ltd, its Sudanese subsidiary has recently acquired a 1285m² block of land in Khartoum to host its future headquarters. The lot is located on a roundabout, at the crossing of Mek Nemr Street and Baladiyah Street.

The Bank will start the construction process, including the acquisition of necessary legal licenses, the drawing of plans, etc. very soon; and the new Head Office is expected to be completed in 2008. Until then, the Bank will pursue its operations at its current location at El Amarat, Street 21, in Khartoum. Byblos Bank Africa will also be working on the embellishment of the area surrounding the works to be undertaken in the newly bought block of land.

In line with its expansion strategy and in order to be closer to all Sudanese, Byblos Bank Africa plans also to open two new branches in 2006 in Great Khartoum area, the first in the Industrial Region in Bahri and the second in Umdurman. Moreover, in the near future, Sudan will host two representative offices in Port Sudan and Juba.

It is worth mentioning that Byblos Bank Africa was established in 2003 as a full-fledge bank operating under the Sudanese law and the regulations of the Bank of Sudan. Byblos Bank Africa supports trade financing for Sudanese firms and foreign companies established in Sudan through lines of credit and pre-export facilities. It also contributes to the country’s reconstruction by providing direct loans to the industrial sector. Byblos Bank Africa has started offering residents and non-residents, 6 months and one year Investment Deposits Certificates in foreign currencies, with expected returns of up to 7% per annum.

Press Release on the donation of Byblos Bank S.A.L. of USD One Million to the victims of the Jeitaoui Bombing

Byblos Bank S.A.L. Ashrafieh Tower- September 21st, 2005- In the wake of the Jeitaoui explosion on 16th September 2005, Byblos Bank S.A.L. announced on Monday 19th September, 2005, that it is donating one million US dollars, as compensation for the damages affecting houses, shops and properties. In this connection, an ad hoc commission will be created in collaboration with the local authorities and Beirut municipality, in order to make a proper assessment of the said damages.

Byblos Bank S.A.L. firmly condemns this bombing that struck a densely populated area, shortly before winter and schools re-opening. It further condemns all the bombings that hit the Lebanese areas in the recent months and reiterates its commitment to stand by the Lebanese people under all circumstances.

Press Release on the signature of Byblos Bank S.A.L. for World-Check KYC Solution

Byblos Bank S.A.L. Lebanon and World-Check have recently inked a contract whereby Byblos Bank S.A.L. has become the first customer for an integrated KYC solution introduced by leading Intelligence Data provider to the financial community, World-Check.

Byblos Bank will implement World-Check's KYC (Know Your Customer) and PEP (Politically Exposed Person) intelligence in the countries where the bank has branches and subsidiaries: Lebanon, Belgium, France, England, Syria, Cyprus, Algeria and Sudan. World-Check, which services banks and government agencies in 120 countries, says Byblos Bank is a leader in applying KYC best practice across its operations and has the first most performing Compliance Unit in Lebanon as to the report of the Special Investigation Commission of the Central Bank. The service provides risk and identification specific information on individuals, companies and organizations. The ability to access this comprehensive database of heightened-risk individuals and entities known to represent a direct threat to financial institutions contributes greatly to reducing the business, reputation and regulatory risks for the bank.

World-Check specifically addresses the critical elements for effective global management of "Know Your Customer" risk throughout a banking group as prescribed by the Basel Committee, the Wolfsberg Group, and the AML/CFT standards contained in the FATF Recommendations.

Antoine Dagher, Head of Compliance Unit at Byblos Bank says: "The deal is an excellent example of how an integrated KYC solution that fulfills the need for risk and identification information in Lebanon and globally can help us manage our KYC risk on a global consolidated basis. World-Check will be an integral part of the account opening stage at the bank. Other succeeding key applications will be in payment filtering and regular client database auditing."
Mr. Dagher concluded: "In addition to safeguarding the interests of our existing customers and to benefiting our correspondents, our partnership with World-Check will enable us to pass relevant KYC information between the head office and all our branches or subsidiaries."

David Leppan, Founder of World-Check says: “We, at World-Check are delighted with the news that Byblos Bank will use our industry standard KYC and PEP intelligence to reduce their risk. Byblos Bank is clearly determined to be at the forefront of its legal requirements and social responsibilities.”

World-Check covers over 220+ countries and territories – in detail. Multilingual teams across the globe monitor, correlate, analyze and build profiles of individuals and entities – including information on their network of reported associates and companies. Virtually, every sanction list is embedded, updated and enhanced. Having carried out research, a structured profile is created with 20+ fields. The synopsis provided on each profile will help the bank understand the risk in seconds. The World-Check database is updated twice daily by monitoring over 200,000 sources globally.
These high risk individuals and entities are often not included in the basic sanctions lists. The sites are monitored hourly, 24 hours a day in 40 different languages.
World-Check is used by over 1,200 financial institutions, regulatory and enforcement agencies around the world. The service is viewed as the benchmark in KYC.

About Byblos Bank
Byblos Bank S.A.L. Lebanon ranks among the top 3 banks in Lebanon with an extensive network of 72 branches spread around the country. Members of the Group include Byblos Bank Europe s.a. (Belgium), ADIR (Adonis Insurance and Reinsurance Company s.a.l.), Partnership Byblos Bank and Assurances Banque Populaire, Byblos Bank Africa ltd, Byblos Bank Syria S.A (to open in 2005) and a representative office in Abu Dhabi.

About Byblos Bank Compliance Unit
The Compliance Unit assists the Management in managing effectively risks faced by the bank, in relation with reputation and material. It operates through prompt reporting with the Special Investigation Commission in the Central Bank of Lebanon. The Compliance Unit works on identifying and evaluating the risks associated with the bank's business activities, including new types of business or customer relationships and assists in setting forth laws, rules and standards.
It works also on educating staff on Compliance issues to increase their awareness on money laundering cases and acts as a contact point within the bank for AML queries from branches.

Press Release on the Financial Performance of Byblos Bank S.A.L. for the year 2004 based on the Unaudited and Consolidated Financial Statements.

Download: Byblos Bank Unaudited consolidated Financial Statement year 2004

Profitability
Byblos bank reported a net income of US$ 53.5 million for the year 2004 recording an increase of 15.6% compared to the last year period. Return on Assets (ROA) and Return on Equity (ROE) stood at respectively 0.83% and 11.8% at the end of December 2004.

The main boost to profitability came from higher commission income which increased by 46.5% to reach US$ 34 million at the end of 2004 as well as higher income from financial operations which increased by 19.6% to reach US$ 26 million at the end of 2004.

Net interest margin dropped from 2.22% at the end of 2003 to 1.61% at the end of 2004. The drop in net interest margin is explained by the maturity of high yielding Lebanese government securities during the year 2004 as well as the aggressive competition among Lebanese banks on deposit taking and on acquisition of good quality loans. The bank compensated for the drop in net interest margin by higher commission and financial operations revenues. As a result non-interest income represented 37.5% of gross operating income compared to 27.1% in the same period of last year, which falls within the bank’s strategy to enhance non-interest income.

Cost-to-income ratio stood at 61% at the end of 2004 compared to 53% at the end of 2003. Operating expenses includes the 5% tax on interest, which if excluded; cost-to-income ratio would have stood at 58% at the end of 2004.

Growth
Total assets stood at LBP 10,491 billion (US$ 7 billion) at the end of December 2004 recording an increase of 15.7% compared to the last year period. Market share in total assets stood at 10.47% at the end of December 2004 compared to 10.0% in the same period of last year

Customer deposits stood at LBP 8,256 billion (US$ 5.5 billion) at the end of December 2004 recording an increase of 11.3% compared to the last year period. Market share in customer deposits stood at 10.1% at the end of December 2004 the same as the last year period.

Customer loans stood at LBP 2,017 billion (US$ 1. 3 billion) at the end of December 2004 recording an increase of 13.4% compared to the last year period. Market share in customer loans increased to 8.4% at the end of December 2004 up from 7.8% in the last year period.
The bank maintained the high coverage of nonperforming loans by provisions and as result net nonperforming loans represented 2.2% of gross loans at the end of December 2004 the same as the last year period.

Total capital amounted to US$ 565 million at the end of December 2004 and represented 8.1% of total assets (one of the highest ratios in the sector).

The bank maintained high liquidity ratios where liquid assets represented a high level of 76.2% of total assets at the end of December 2004 and immediate liquidity in foreign currencies represented 56.7% of FCY deposits.

Download: Byblos Bank Unaudited consolidated Financial Statement year 2004

Byblos Bank Organizes a Reception for the Launching of “Decade”
The First Book to Summarize 10 Years of Achievements in Lebanon

Achrafieh, Byblos Tower – November 18, 2004 --- Byblos Bank S.A.L. organized a cocktail reception at its Headquarters at Byblos Tower on November 18, 7 p.m. in the occasion of the launching of “Decade – Ten Years of Archeology and History in the Lebanon”, a book edited by Mrs. Claude Doumet Serhal in collaboration with Anne Rabate and Andrea Resek. The 581-page book covers most research programs undertaken over the last ten years in Lebanon’s ancient sites namely, Tyre, Tell Rachidiyeh, Sidon, Eshmun, Chhim, Beirut, Byblos, Yanouh, Tripoli, Tell Arqa, Hourriye, Qadisha Valley, the Cedars, Baalbeck and Kamid El Loz.

Were present H.E. Mr. James Watt Ambassador of England and Mr. Frederic Housseiny General Director of Antiquities along with a panel of highly distinguished Lebanese and foreign personalities from the archeological, business and media milieus.

Mrs. Serhal and other contributors to “Decade” shared their archeological experience with the guests and pleasantly informed them of the contents of the book and the reasons behind it.

By supporting such cultural projects, Byblos Bank aims at promoting educational programs and raising awareness among the Lebanese population with regards to their historic heritage. “Decade” is an informative book that brings together valuable information on famous archeological sites introduced by leading archeologists or historians who make public their experience in the field. The importance of the book lies in that it offers the Lebanese people an overview of the rich cultural heritage they carry.

The cocktail reception was preceded by a press conference held the same day at 11 a.m. at Byblos Tower for the official launching of the book in the presence of representatives of the Lebanese media.

Press Release: Financial Performance of Byblos Bank S.A.L. during the 1st Nine Months of 2004 based on the Unaudited and Consolidated Financial Statements

Unaudited Consolidated Financial Statement Third Quarter 2004

Profitability

Net income for the 1st nine months of 2004 amounted to US$ 36.1 million recording an increase of 1.7% compared to the same period of last year. Return on Assets (ROA) and Return on Equity (ROE) stood at respectively 0.8% and 11% at the end of September 2004.

The increase in net income was small due to the bank’s conservative strategy pursued two years ago. The bank decided to reduce its exposure to the public sector in order to diversify away its risks to one important borrower. As a result exposure in the high return Lebanese government securities as percentage of total assets was reduced from 30.1% at the end of September 2003 to 22.2% as of end of September 2004. Moreover, low return immediate liquidity in foreign currencies (excluding investments in fixed income securities) represented 65% of foreign currency deposits at the end of September 2004 in comparison with 61.4% in the same period of last year.
Aggressive competition among Lebanese banks on deposit taking and on acquisition of good quality loans continued to drive margins down. As a result net interest margin dropped by 68 basis points compared to the last year period and reached 1.7% at the end of September 2004.

Looking forward, the fourth quarter of 2004 may encounter more pressure on margins in the Lebanese banking sector taking into consideration the maturity of old booked high return Lebanese government treasury bills, increased pressure on the cost of deposits in view of increasing interest rates on US$ in the international market and the regional political uncertainty.

The bank is diversifying the sources of its revenues and taking actions to control better its operating expenses to mitigate the downward pressure on net interest margin. In this regard, income generated from commissions and financial operations represented 33.6% of total operating income compared to 27.8% in the last year period.

Growth

· Total assets stood at LBP 10,052 billion (US$ 6.67 billion) at the end of September 2004 recording an increase of 13.4% compared to the last year period. Market share in total assets increased to 10.4% at the end of September 2004 up from 10.1% in the last year period.

· Customer deposits stood at LBP 8,149 billion (US$ 5.4 billion) at the end of September 2004 recording an increase of 12.7% compared to the last year period. Market share in customer deposits increased to 10.3% at the end of September 2004 up from 10.2% in the last year period.

· Customer loans stood at LBP 1,856 billion (US$ 1.23 billion) at the end of September 2004 recording an increase of 5.7% compared to the last year period. Market share in customer loans increased to 7.6% at the end of September 2004 up from 7.4% in the last year period.
The bank increased the coverage of nonperforming loans by provisions and as result net nonperforming loans represented 2.3% of gross loans at the end of September 2004 compared to 3.8% in the last year period.

· Total capital amounted to US$ 542 million at the end of September 2004 and represented 8.1% of total assets (one of the highest ratios in the sector) and capital adequacy ratio stood at a high level of 24.8%.

Outlook

In the domestic market, the bank will continue to ensure leadership through its largest and wide spread branch network in the country, on focusing on profitable consumer market segments, on the small and middle size segment and on the corporate business.

Externally, the bank aims at pursuing selective overseas expansion aiming at diversifying its risk from Lebanon and ensuring better returns for its shareholders. As a result a full fledged International Banking Division was set up and qualified staff were recruited.
Two days ago Byblos Bank Syria (in constitution) secured approval for a license to operate a full fledge bank in Syria with an institutional partner, the OPEC Fund. This follows the opening of Byblos Bank Africa where return on equity stood at a high level of 12.9% after only one year of operations. Byblos Bank Africa has been setup with a partnership with OPEC fund and the Islamic Corporation for the Development of the Private Sector (ICD).
Other countries are being studied with view to setting up full fledged banks in markets where the economic and political situation is relatively stable and friendly for foreign investors.
While Byblos Bank will continue to maintain its leadership position in the domestic market through internal and external growth, the bank has embarked 3 years ago in a long term strategy in growing in selective emerging markets with growth potential and higher return to shareholders.

Unaudited Consolidated Financial Statement Third Quarter 2004

Press Release: Thursday, August 12, 2004: Partnership Byblos Bank – Coldwell Banker

Byblos Bank sal and the international real estate agent, Coldwell Banker (Lebanon), signed a partnership agreement. The objective of this partnership is to facilitate the process of housing loans from one side and boost the construction sector from another side.

The signing ceremony took place at Byblos Bank’s headquarters in Ashrafieh , Beirut.

On behalf of Byblos Bank, Mrs. Joumana Bassil Chelala – Head of Marketing, Sales –Retail Products, signed the agreement with Mr. Elie Harb – General Manager of Coldwell Banker (Lebanon).

On this occasion, Mrs. Chelala revealed the positive impact Byblos Bank’s latest campaign “Own a Home in your Homeland” had and the increasing demand the Bank had received on its Expatriate Housing Loan. This phenomenon that was approached by both Lebanese visiting Lebanon and those abroad, showed the attachment Lebanese had to their country of origin and their need to own a piece of property in their homeland. This prompted the Bank to develop further its services offered to Expatriates by helping them find and buy a home in Lebanon without the hassle of traveling or spending vacation time searching for the right house. In this respect, Byblos Bank has chosen the international real estate agent Coldwell Banker to play this intermediary role. Through its internationally spread network, Coldwell Banker will be accessible to Lebanese all around the globe to listen to their house quest: location, size, budget, etc... With its expertise and contacts with the local real estate market it will present the customer with a house that suits his/her request. At this point, Byblos Bank will further enable expatriates to conclude their purchase by applying online at www.byblosbank.com to the tailor – made expatriate housing loan and get a preliminary approval within 48 hours. This service is not exclusive to expatriates, even Lebanese residents can benefit from it.

On the other hand, Mr. Harb mentioned that Coldwell Banker provides real estate services through more than 3,500 offices around the world. Moreover, its name is well known abroad and among expatriates since 20% of real estate sales in the US is done through Coldwell Banker. He added that, lately, after opening three offices in Lebanon between Beirut and Alley, the company is now able to fulfill its objectives to cover the Lebanese region by offering professional service and transparency. Mr. Harb continued, it was only natural for Coldwell Banker to team up with the leader in retail banking and specifically housing loans. Last but not least, we chose Byblos Bank due to the common reputation it enjoys with Coldwell Banker, which is Professionalism and Transparency.

Mr. Harb further elaborated the role of “first contact” that Coldwell Banker plays whereby it facilitates the buyer resident or non-resident to find the appropriate house. After negotiating with the seller, it then initiates the application to the housing loan, through its offices in Lebanon or abroad or even through their website: www.coldwellbanker.com.lb . The buyer can also apply directly through any Byblos Bank branch or website. The company, can also, through a proxy, prepare all the documents on behalf of the applicant to facilitate this task for him.

At the end, Mrs. Chelala and Mr. Harb both expressed their confidence that the result of this partnership will be fruitful and that it will increase the number of return of Lebanese expatriates to their homeland Lebanon. In turn, this will improve the construction sector and boost the Lebanese economy as a whole.

Press Release on the Financial Performance of Byblos Bank S.A.L. during the 1st Six Months of 2004 based on the Unaudited and Consolidated Financial Statements.

Thursday July 29th, 2004

Profitability

Net income for the 1st six months of 2004 amounted to LBP 37.7 billion (US$ 25 million) recording an increase of 1.3% compared to the same period of last year. Return on assets (ROA) and return on equity (ROE) stood at respectively 0.8% and 11.5% at the end of June 2004.

The bank was able to increase its profits despite the drop in net interest margin from 2.44% at the end of June 2003 to 1.84% at the end of June 2004. The drop in net interest margin was the result of the bank’s conservative strategy with regard to maturity mismatching and liquidity accumulation.

Most important is the bank’s ability to diversify the sources of its operating income. In this regard, non-interest income represented 29% of total operating income at the end of June 2004 compared to 23% at the end of June 2003. Another aspect of income diversification is generating income from countries other than Lebanon.

Operating expenses increased slightly by 3.1% compared to the same period of last year and cost-to-income ratio stood 62.7% at the end of June 2004.

Growth

Total assets recorded a growth of 12.7% compared to the same period of last year and stood at LBP 9,677 billion (US$ 6.4 billion) at the end of June 2004. Customer deposits recorded a growth of 14% compared to the same period of last year and stood at LBP 7,966 billion (US$ 5.3 billion) at the end of June 2004.
Customer loans were almost stable and recorded a small increase of 0.7% compared to the same period of last year and amounted to LBP 1,846 billion (US$ 1.2 billion) at the end of June 2004. The bank continued with its conservative strategy with regard to loan provisioning and as a result net non-performing loans represented 1.7% of gross loans at the end of June 2004 compared to 2% in the last year period.

Liquidity and Capital Adequacy

The bank continued to increase its liquidity levels, where liquid assets represented 76.6% of total assets at the end of June 2004 up from 75.1% a year earlier. Highly liquid placements with banks denominated in foreign currencies represented 61.6% of foreign currency customer deposits at the end of June 2004 up from 52.6% at the end of June 2003.
Total capital amounted to LBP 800 billion (US$ 531 million) at the end of June 2004 and the bank maintained high capitalization levels with a capital adequacy ratio of over 26% which is much higher than the required rate of 12%.

Unaudited Consolidated Financial Statement First half 2004

Press Release: Byblos Bank Signs a New Credit Line with ICD

Friday April 30th, 2004, Byblos Bank SAL and the Islamic Corporation for the Development of the Private Sector (ICD) signed a USD 7 million line of financing agreement, to be used to finance the procurement of fixed assets, such as equipment and machinery, to Lebanese commercial companies. The signing ceremony took place at Byblos Bank Headquarters in Ashrafieh, Beirut.

Dr. François S. Bsssil , Chairman and General Manager of the Bank, signed the agreement with Dr. Ali Soliman, CEO and General Manager of ICD, an affiliate of the Islamic Development Bank. This line of financing is the first one granted by ICD to a Lebanese Bank and has a tenor of 7 years and will be invested by way of installment sale facility to Byblos Bank’s clients.

It is worth mentioning that ICD holds 10 % of Byblos Bank Africa, subsidiary of Byblos Bank SAL which initiated its business operations in September 2003 in Khartoum- Sudan.

This granted facility is now added to the existing Byblos Bank long term funding portfolio which amounts to USD 130 Million and gives again Byblos Bank’s clients the possibility to choose from a wide range of products and services in order to develop or restructure their companies.

Press Release on the Financial Performance for the 1st Quarter of 2004

Unaudited Consolidated Balance Sheet First Quarter 2004

Profitability
Net income for the 1st quarter of 2004 amounted to LBP 15.6 billion (US$ 10.3 million) recording a decrease of 12.3% compared to the last year period. ROA and ROE stood at respectively 0.7% and 9.4% at the end of March 2004. The main reason for the drop in profitability was the reduced net interest margin by 82 basis points from 2.63% at the end of March 2003 to 1.81% at the end of March 2004. The decrease in net interest margin is explained by the bank’s conservative strategy to keep highly liquid assets, coupled by the drop in LBP interest rates and the current low level of US$ interest rates. In this regard the bank reduced its portfolio of Lebanese government securities denominated in foreign currencies which represented 18.2% of FCY deposits compared to 39% in the last year period. Moreover, customer loans as a percentage of customer deposits stood at 23.7% compared to 27.5% in the last year period.
Non interest income increased by 21.6% compared to the last year period and represented 24.1% of total operating income compared to 17% in the last year period.
The bank is working on the diversification of income sources at two levels;
•Increasing the level of non-interest income through, private banking initiatives, bank assurance products and investment banking activities through the newly created Byblos Invest Bank SAL.
•Expanding outside Lebanon. In this regard, the bank opened a banking subsidiary in Sudan which is fully operational and started to generate profits from the 1st year of operations.

Growth
Total assets increased by 13.6% compared to March 2003 and amounted to LBP 9,353 billion (US$ 6204 million) at the end of March 2004.
Customer deposits increased by 16.3% compared to March 2003 and amounted to LBP 7,680 billion (US$ 5,095 million) at the end of March 2004. Market share in customer deposits stood at 10.24% at the end of March 2004 compared to 10% in the last year period.
Customer loans remained almost flat with a marginal increase of 0.1% due to the lack of attractive opportunities and stood at LBP 1,818 billion (US$ 1,206 million) as at end March 2004. Market share in customer loans stood at 7.7% at the end of March 2004 same as a year earlier. Net non-performing loans were significantly lower at 1.6% of gross loans at the end of March 2004 compared to 2.4% in the last year period.

Liquidity & Capital Adequacy
The bank increased its liquidity levels compared to the last year period. Liquid assets represented 76.4% of total assets and 93% of customer deposits at the end of March 2004 compared to respectively 74.2% and 92.5% in the last year period.
Total capital amounted to LBP 826 billion (US$ 548 million) at the end of March 2004 and capital adequacy ratio stood at a high level of 26.8%.

Unaudited Consolidated Balance Sheet First Quarter 2004

Sidon: British Museum Excavations

Sidon was, from the earliest time, an important city-state in the Ancient Levant. It is mentioned thirty-eight times in the Old Testament and appears in Genesis as the oldest Canaanite city, “the first-born of Canaan”. Moreover, the Old Testament, like Homer, often uses the term “Sidonian” to refer to all Phoenicians. Because it is densly built up, the city has never been systematically explored.

Five years of British Museum-Byblos bank (1998, 2000-2003) excavations with the assistance of the Directorate General of Antiquities of Lebanon, have revealed for the first time the continuous history of the city from its early Third Millennium BC beginnings around 3000 BC until the end of the Second Millennium at around 1250 BC. Occupation levels dating back to the First Millennium BC at around 450 BC have also been uncovered.

This comprehensive historical stratigraphy of Sidon makes these excavations uniquely important; nowhere before has this continuity in any one single location been found. The importance of the Sidon material lies in the fact, that it is acting as a base for a greater understanding of the links between regional groups from both Syria and Palestine.

Modern scientific methods will further establish a correct chronological sequence for the Lebanon which has suffered not only from a lack of methodical excavation but from insufficient excavation of its great cities, which played such an important part in the events of the Ancient world.

For further information on the project excavation/sponsors/ see: www.sidonexcavation.org
Dr Claude Doumet-Serhal - Director of Excavation

Press Release: January 29th 2004, Byblos Bank launches the Lira Card, First International Card in Lebanese Pounds

Beirut- January 29, 2004 - Byblos Bank launched today at its Achrafieh Headquarters, the LIRA CARD - first international card in Lebanese Pound. Present at the conference were Mr. Melhem Karam, President of the Lebanese Editor Order and Marwan Kaddoura Chairman and CEO of Credit Card Services Company (CSC). "This goes along with the Bank's commitment to offer Lebanese consumers products that can ease up their daily lifestyle. " confirmed the Bank's Chairman & General Manager, Dr. François Bassil. He continued that the objectives of launching an International card holding the country’s currency are as follows:
First, to encourage the use of our national currency, as a basic mean of payment and minimize the dollarization effect on the Lebanese economy. According to Central Bank’s November 2003 statistics, the use of US Dollars denomination is as follows: Customer deposits in USD reached 66.1%, Customer loans in USD reached 83.1%, Cheques traded in USD reached 70.3%.
Second, to reinforce the use of plastic cards in daily spending being the latest updated payment technology. Cards offer various benefits to the consumer, especially to the Lebanese people who are constantly adopting modern lifestyles. He continued that according to a study that reflects card usage for the past five years, cards business has done an important evolution in Lebanon. However, purchases done in Lebanese pounds with cards represent only a mere 8.2% of total transactions.
Third, to strengthen the purchasing power of those with a salary in Lebanese pounds, as a continuous effort to revive the middle class, who play an important role in the economy’s progression.
Forth, to go on par with the shopping festival and the government’s efforts to revive the Lebanese economy, through this annual event and their incitement to use the Lebanese pounds.
During the conference, Mr. Marwan Kaddoura confirmed CSC’s willingness to go forth in implementing this new project among all merchants in the Lebanese territories. Mr. Kaddoura, further thanked Byblos Bank for the trust placed in CSC and for the fruitful partnership that is more than 13 years old.

Click here For more information on the Lira Card

Press Release: January 8th 2004, ICD enters into the capital of Byblos Bank Africa – Sudan
The Islamic Corporation for the Development of the Private Sector (ICD) and Byblos Bank Africa Ltd. signed today an equity financing agreement in order to support the newly established Bank in the Sudan. ICD will have a 10 % participation in the capital of the Bank; Byblos Bank s.a.l remaining the major equity holder with 65% shares. The Islamic Corporation for the Development of the Private Sector, private arm of the Islamic Development Bank (IDB), is responsible for the development and promotion of the private sector in its member countries. ICD, playing the complementary role to the IDB, continues to provide a wide variety of financial products such as direct financing, lines of financing, asset management and structured financing. With its participation in the capital of Byblos Bank Africa, ICD will back the Bank’s mission in promoting the industrial sector in Sudan by providing long-term loans to finance industrial infrastructure. In addition, this partnership will anchor Byblos Bank Africa in the Islamic Banking community. Speaking at the press conference, Dr. Bassil said that “the Sudan, recovering from a civil war, is entering into a phase of huge reconstruction and development of its overall infrastructure. Sudan is also very rich in its human skills and unexploited natural resources.” “For these reasons,” he continued, “Byblos Bank chose Khartoum as its starting point for its expansion plans in the Africa Region.” Byblos Bank Africa Ltd, who launched its operations in Khartoum – Sudan on September 6th, 2003, is supporting trade finance activities for Sudanese firms through lines of credit and pre-export facilities. Furthermore, by providing direct loans to the industrial sector, it will participate in the country’s reconstruction.
With ICD entering the capital of Byblos Bank Africa, the shareholder base of the bank will be composed of the following entities:
• Byblos Bank sal 65 %
• OPEC Fund (based in Vienna) 20%
• ICD Islamic Corporation for the Development 10%
• Other private investors 5%

ICD will participate as well at a level of 10 % in a subordinated debt.

The agreement was signed at Byblos Bank’s headquarters in Beirut on behalf of Byblos Bank Africa Ltd. by Dr. François Bassil, Chairman of the Board of Directors, and by Dr. Ali A. Suleiman, CEO and General Manager of ICD.

Dec 13, 2003,
Byblos Bank’s Central Operations Receives the ISO 9001-2000 Certificate Award.
Byblos Bank’s Central Operations Receives the ISO 9001-2000 Certificate Award.
Byblos Bank is glad to announce that the Internationally renowned rating company BSI, accredited by UKAS (London), both international non-profitable institutions has awarded the Bank's Central Operations with the ISO 9001-2000 certificate. With this award, the Bank's Central Operations, made up of 60 highly qualified professionals, proved its ability to execute banking operations at high speed and based on international standards and norms. The functions that were attributed with the ISO 9001-2000 standard are the Swift Administration, Treasury Back Office, Transfers & Payments, Trade Finance and Invoicing - Clearing & Retail. Byblos Bank is proud to be the first Bank in Lebanon to have its Central Operations receive from the world-wide reputable organisations BSI and UKAS the ISO certificate number FS 73730. In this occasion, Byblos Bank confirms its commitment to offer world-class banking service to its customers.

November 8, 2003- Kafalat Workshops (November-December)
In line with its mission to boost Lebanon’s small businesses and authentic professions, Byblos Bank offered workshops on Kafalat and Small Business Loans Program. Our objective is to familiarize skilled professionals and small business owners of the support we can offer them through our program.

September 2, 2003: Launching of Private Banking Activity as a major Business at the Bank
After the strategic acquisition of ABN-AMRO Bank N.V. Lebanon Branch in 2002, Byblos Bank introduced Private Banking activity in 2003 as a major business at the Bank. The main objective was to maintain a privileged relationship with international private banking institutions (ABN-AMRO group entity HBU) and to propose highly personalised banking services to high net-worth customers: financial and investment solutions, and financial advice. A special confidential environment was dedicated at the HQ premises at the 14th floor.

Press Release: 17 September, 2003 - Byblos Bank Africa in Sudan
n its continuous effort to expand its presence in the MENA region, Byblos Bank SAL announced the launching of its operations of Byblos Bank Africa, its subsidiary in Khartoum - Sudan. The bank, located in Al Amarat area and governed by the Sudanese law under the regulations of the Bank of Sudan, started its operations on September 6th, 2003 and will be focusing on Commercial Banking transactions (Trade Finance, Corporate Finance and Project Finance), Private Banking and Correspondent Banking activities. Byblos Bank business history in the Sudan is more than 3 decades old. In the early seventies Byblos Bank has entered the Sudanese market to finance mainly trading activities. Since then, Byblos Bank has been very active in financing the international trade and commercial flow. Byblos Bank Africa plans to play a pioneer role in the development and the marketing of new banking products and services. It also intends to develop long-term relationships with its customers by providing quality services and tailor-made financial solutions.

Byblos Bank Africa’s shareholders are as follows:
•Byblos Bank S.A.L.                                                65 %
• OPEC Fund for International Development - Vienna 20 %
• ICD   Islamic Corporation for the Development          10%
• Other local and private investors                               5 %

Byblos Bank Africa’s Board of Directors is composed of:
• Dr. François S. Bassil           Chairman
• Mr. Semaan Bassil   Member
• Mr. Elie Nahas   Member
• Mr. Laurent Hawath Member
• OPEC Fund Representative Member

Management Committee of Byblos Bank Africa is composed of four senior officers:
• Mr. Fouad Negga,        Acting General Manager, Head of Commercial and Retail (fnegga@byblosbank.com.lb)
• Mr. Labib Sammour,      Head of Finance and Administration (lsammour@byblosbank.com.lb)
• Mr. Giuseppe Cannata,   Head of Private Banking (gcannata@byblosbank.com.lb)
• Mr. Hatem Mehdi Ali,    Head of Operations (hmehdi@byblosbank.com.lb)

Byblos Bank Africa full address is the following:
Al Amarat Street, 21
P.O. Box: 8121 Khartoum
Khartoum - Sudan
       Phone: 00.249.11.566 444
       Fax:     00.249.11.566 454
       Web site: www.byblosbank.com.lb
       Swift Code: BYBASDKH

August 19, 2003: Opening of Beirut International Airport Branch
To better serveTourists and Lebanese expatriates, Byblos Bank opened a Branch at the Beirut International Airport. Byblos Bank Airport Branch is located at the Departure Zone and managed by Miss Haifa Saleh. It also has widespread access points with three stands on arrival zone, and four ATMs located as follows: 2 at arrival zone, 1 at the Duty Free zone, 1at the Departure zone.
Byblos Bank Airport Facilities are:
• Foreign exchange services
• Stamps selling for your Visa issuing at the Airport
• Expatriates Housing Loans at very special rates.
• Special souvenirs medals from Lebanon.
• Long time accessibilty: 24/24 hrs. 365 days a year.

Press Release: 6 March 2003: Al Awael
Enriching the Culture of our Children, is one of Byblos Bank’s main objectives. After ten years of the TV Quiz campaign, Byblos Bank organised AL Awael competition, between all the secondary students of Lebanon. The prizes amounted to LBP 75,000,000 for scholarship.

March: USD 100,000 Preferred Shares
To pursue its regional expansion plans, Byblos Bank issued USD 100 Million Preferred Shares to raise its capital to USD 500 million. This move came as a result of a successful closing of USD 100 Million bonds in the previous year. Raising the Bank’s capital was the right move towards becoming a regional player. It is significant by local standards and supportive of the Bank’s objective to proceed with its expansion into a new MENA country.

March: Child’s Week
For the 19th consecutive year and in partnership with APEL (Association pour la Protection de L’enfance libanaise) Byblos Bank organised the Child’s week intra-scholar competition in the region of Byblos Jbeil. Each year the Bank chooses a theme about cultural heritage. The winners receive scholarship grants.

March: Press Release: Financial Performance during the 1st Quarter 2003 Unaudited and Consolidated Financial Statements
Net income for the 1st quarter of 2003 amounted to LBP 17.8 billion (US$ 11.8 million) recording the same amount as the last year period. Return on Assets (ROA) and return on equity (ROE) stood at respectively 0.9% and 14.5% at the end of March 2003. The bank was successful in maintaining the same profitability levels as the last year period despite subscribing to the special treasury bills yielding 0%. In this regard net interest margin stood at 2.63% at the end of March 2003 and March 2002. Total assets increased by 17.8% during the period 31-March-2002 to 31-March-2003 to reach LBP 8,235 billion (US$ 5.5 billion) at the end of March 2003. Total deposits increased by 20.1% during the period 31-March-2002 to 31-March-2003 to reach LBP 6,606 billion (US$ 4.4 billion) at the end of March 2003 and total loans increased by 18.6% to reach LBP 1,816 billion (US$ 1.2 billion) at the end of March 2003. Net non-performing loans represented 3.8% of gross loans at the end of March 2003. The coverage of non-performing loans by provisions and cash collateral stood at 89% at the end of March 2003. The bank maintained high liquidity ratios with liquid assets representing 74.2% of total assets and immediate Fcy liquidity representing 46% of FCY deposits at the end of March 2003. Total capital amounted to US$ 403 million (which excludes declared dividends) at the end of March 2003 and will amount to US$ 503 million upon the closing of the preferred-shared issuance. Total capital represented 5.9% of total assets at the end of March 2003 and capital adequacy ratio stood at around 19% (excluding the upcoming preferred share issuance).
For more details download Byblos Bank Balance Sheet in pdf format.


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