The Audi net income for 2014 increased 15% ($350 million), thanks to the success of their affiliates abroad, the Audi’s bank announced Monday. “The performance of Bank Audi in 2014 confirms the appropriateness of the strategy to diversify the Group’s current operating environment and its suitability for growth, with a consolidated increase of 15 percent compared to 2013 net profit to reach $350 million, of which 42 percent by entities outside Lebanon” the bank said in a press release.
Bank Audi is one of the largest Lebanese banks that spread to other countries in the last decade to diversify their income and reduce their dependence on small Lebanese market. “This performance was due in particular from the strengthening of the capacity to generate income on the main pillars of development of the Group, mainly in Turkey, but also in Lebanon, Egypt and private banking institutions,” said the bank .
The bank has invested more than $300 million in Turkey, opening Odea Bank in 2012. In recent years it has become Odea their largest and most profitable subsidiary. In an interview with The Daily Star in October, General Manager Freddie Baz said the investment in Turkey was very rewarding. “We have a very strong presence in Turkey, which is a market with high added value, and this is what we to compensate for the relative stagnation in many countries, including our market,” he said.
Baz expected benefits Audi subsidiaries abroad to represent a large part of the total profits of the bank in a few years. “Revenue growth in Turkey allowed Odea Bank to report positive net income after provisions and taxes from the month of May 2014, the construction of the net profits of exponential growth according to the bank’s objectives for its Turkish subsidiary” , the statement added.
The bank also saw its assets and deposits up last year compared to 2013. “consolidated assets of the bank increased by $5.8 billion in 2014, from $36.2 billion at the end of December 2013 to $42 billion by the end of December 2014, reaching $52.1 billion in accounting for fiduciary deposits, security accounts and assets under management, “Audi said.
Their customer deposits consolidated in late 2014 also increased 15.2 percent to $35.8 billion. The net worth of the bank ‘also reached $3.3 billion in late December 2014 after completing a capital increase of $300 million in September 2014. The version of this article appeared in the print edition of The Daily Star on January 27, 2015, on page number 5.