Bank Audi published its unaudited financial results for the first half of 2023 reporting a net profit of LBP 1,012.65 billion ($67.51 million when converted to local dollars using the official exchange rate of LBP 15,000 per USD) compared to a net profit of LBP 727.77 billion ($482.77 million when converted to local dollars using the previous official exchange rate of LBP 1,507.5 per USD) in the same period in 2022. The sharp increase in all income statement and balance sheet figures when reported in LBP owes to the adoption of the new official exchange rate of LBP 15,000 per USD starting the month of February instead of LBP 1,507.5 per USD previously. In details, net interest income stood at LBP 3,252.98 billion by the end of the first half of 2023 while net commission & fee income reached LBP 1,139.73 billion. The bank registered a net gain on financial instruments & other operating income of LBP 784.53 billion (of which some LBP 393.42 billion stem from trading activities). On the other hand, the bank booked some LBP 1,564.61 billion in net impairment losses on financial assets compared to some LBP 217.87 billion in net write backs in the first half of 2022. Consequently, Bank Audi registered a net operating income of LBP 3,612.63 billion as at end of June 2023. Concurrently, operating expenses increased by more than four folds annually when comparing figures in LBP-equivalent to LBP 2,337.19 billion, with personnel expenses reaching LBP 1,211.03 billion and other operating expenses standing at LBP 936.80 billion. On the balance sheet front, the bank’s consolidated assets ended the first half of the year at LBP 269.56 trillion, with net loans & advances standing at LBP 37.20 trillion and customer deposits nearing LBP 228.33 trillion. Consequently, the bank’s ratio of net loans to customer deposits ended June 2023 down at 16.29% from 20.40% at end of year 2022. Bank Audi’s shareholders’ equity expanded by 177.91% in H1-2023 to LBP 16.83 trillion amid the adoption of the new official exchange rate of LBP 15,000 per USD starting February which bolstered monetary equity elements that are USD-denominated. The bank stated that the adoption of the provisions of BDL circular 676 which calls for the booking of positive FX positions under other liabilities instead of equity had a pervasive effect on equity. The bank reported a total capital adequacy ratio (calculated according to Basel III standards) and a common equity tier 1 ratio of 6.41% and 4.97% on a respective basis by end of June in comparison with 9.81% and 6.33% at end of year 2022. The bank attributed the drop in its solvency ratios to the implementation of IAS 21 standards.