According to BDL statistics, the combined balance sheet of commercial banks operating in Lebanon show a staggering increase in figures in March 2024 when reported in LBP equivalent as a result of the change in the official exchange rate to LBP 89,500 per USD. In figures, the consolidated assets of banks stood at LBP 9,290.54 trillion by end of March 2024 compared to LBP 1,728.74 trillion in December 2023 and LBP 1,727.19 trillion in March of the previous year at a time when the official exchange rate was LBP 15,000/USD.

On the funding side of the balance sheet, customer deposits attained LBP 8,180.37 trillion in March 2024, with those of the resident private sector reaching LBP 6,244.30 trillion, non-resident private sector deposits surpassing LBP 1,873.69 trillion, and public sector deposits standing at LBP 62.37 trillion. From a currency denomination standpoint, deposits in Lebanese Pounds increased by 65.71% (LBP 46.21 trillion) YTD March to LBP 116.53 trillion, while foreign currency deposits decreased by 1.29% ($1.18 billion) to $90.10 billion. On a monthly basis, FC deposits fell by $271.86 million in March as a result of the offsetting of $134 million in FC loans, coupled with the ongoing withdrawal of FC deposits under the provisions of BDL circulars 158 & 166 and the sustained conversion of part of FC-deposits to LBP under the provisions of BDL circular 151. In this context, the deposit dollarization rate reached 99.63% at end of March 2024 in comparison with 96.62% in December 2023 and 96.70% in March 2023.

On the lending front, loans to the private sector (residents and non-residents) reached LBP 631.40 trillion in March 2024 compared to December 2023’s reading of LBP 124.82 trillion. More specifically, LBP denominated loans fell by 5.57% (LBP 633.99 billion) in the first quarter of 2024 to LBP 10.75 trillion and foreign currency loans receded by 8.30% ($627.47 million) to $6.93 billion. The ratio of loans to deposits attained 7.72% by March 2024 compared to 8.67% at end of 2023 and 10.13% a year earlier. More specifically, the ratio of LBP-denominated private sector loans to LBP deposits stood at 9.23% in March, in comparison with 16.19% at year-end 2023 and 20.66% a year earlier while the ratio of foreign currency-denominated private sector loans to foreign currency deposits reached 7.67% at end of March 2024 in comparison with 8.26% at end of December 2023 and 9.58% at end of March 2023.

The consolidated capital accounts of commercial banks operating in Lebanon stood at LBP 263.21 trillion in March 2024 in comparison with LBP 76.37 trillion at end of year 2023 as a result of the aforementioned change in the official exchange rate. On a monthly basis, however, the capital accounts dropped by LBP 21.14 trillion following a LBP 28.38 trillion contraction in February.