Since the beginning of 2001, the Lebanese Canadian Bank has worked on strengthening its position in the banking sector by adopting an ambitious five-year business plan aimed at increasing its market share and the volume of its banking activities as well as at improving its net results.

This ambitious strategy was intended to position the Bank among the “Top Ten Banks” operating in Lebanon and this was actually achieved. LCB management took this initiative and monitored its implementation from 2001 through 2007, which contributed to a consistent growth of its total assets from:
US$ 488 Million as at 31/12/2000 to:
US$ 752 Million as at 31/12/2001, i.e. a 54% increase;
US$ 1,133 Million as at 31/12/2002, i.e. a 51% increase;
US$ 1,727 Million as at 31/12/2003, i.e. a 52% increase;
US$ 2,340 Million as at 31/12/2004, i.e. a 35% increase;
US$ 2,836 Million as at 31/12/2005, i.e. a 21% increase;
US$ 3,119 Million as at 31/12/2006, i.e. a 10% increase;(Due to the critical circumstances from 2005)
  US$ 3,532 Million as at 31/12/2007, i.e. a 13% increase;

As member of the Alpha Group (i.e. the major banks with deposits exceeding US$ two billion), LCB saw its deposits increase from US$ 423 Million as at 31/12/2000 to US$ 3 Billion at the end of 2007, and its loan portfolio increased from US$ 150 Million as at end of the year 2000 to US$ 668 Million as at end of the year 2007.

The Bank’s solvency ratio, according to Basle 2, exceeded 11% at the end of 2007, exceeding by far the required international rate of 8%. LCB also remains concerned about increasing its equity, and reinforcing its corporate governance techniques in order to apply the Basle 2 accord. As far as the Bank’s liquidity ratio is concerned, it has exceeded 80% as at the end of 2006 & 2007.

In the past two years, LCB achieved performance ratios as to profits that exceeded by far those of the banking sector in Lebanon. The return on average equity for common shareholders exceeded 16% while the return on average assets was close to 1%.

The Bank maintained this outstanding performance by relying on its internal resources, at a time when growth in the banking sector was mainly based on mergers and acquisitions. This success story and the achievements that preceded it are due to the following reasons:

  • A network of branches that grew from 10 as at 31/12/2000 to 32 as at 31/12/2007 and looking forward to reaching 36 branches by the end of 2008. Most of this growth results from buying the branches of other banks, which have ceased their activities.

  • The team work policy adopted by the Bank, under the leadership of the Board of directors, its Chairman and the members of the Board. This policy was further implemented by the Bank’s senior management team who believe that team work is the most important driver for corporate success.

  • An increase in equity from US$ 21 Million as at 31/12/2000 to around US$ 228 Million as at 31/12/2007, with a commitment and a target to exceed US$ 300 Million by the end of 2008, through IPO, or capital increase of common shares or preferred shares and through Global Depository Receipts (GDR) (providing the political & economic situation allows such action).

  • The implementation by the Bank of an investment strategy that led to outstanding results, which translated into a consistent growth of profits in the past seven years, to increase to around 650% since the year 2000, from US$4.7 Million to US$30 Million for the year 2007. This achievement was the result of reducing the cost of funds, improving the collection of commissions and following a cost containment policy, which reduced the cost to income ratio to less than 48% (in the past four years)

  • LCB was the first bank in Lebanon to receive the ISO Certification Award. It also conducted successful advertising campaigns, which contributed in strengthening customers’ trust in the Bank.

  • A commitment to satisfy, and if possible exceed customers’ expectations, as we believe that customers’ satisfaction is the true measurement of success.

  • The implementation of an internal policy, which considers the appreciation and reward of quality performance as well as staff welfare among the priorities and core values.