According to BDL statistics, the combined balance sheet of commercial banks operating in Lebanon narrowed by 1.59% (LBP 145.45 trillion) during the first quarter of the year 2026 to LBP 9,010.66 trillion, down from LBP 9,156.11 trillion in December 2025. On an annual basis, the combined assets of the resident banking sector came in 1.93% lower than the LBP 9,188.30 trillion reading reported at end of March 2025.

On the funding side of the balance sheet, customer deposits dropped by 1.19% (LBP 93.37 trillion) in Q1-2026 to LBP 7,778.31 trillion with resident private sector deposits decreasing by 1.26% (LBP 74.31 trillion) to LBP 5,812.95 trillion, non-resident private sector deposits dropping by 0.59% (LBP 11.35 trillion) to LBP 1,904.88 trillion, and public sector deposits receding by 11.31% (LBP 7.71 trillion) to LBP 60.48 trillion. From a currency denomination standpoint, deposits in Lebanese Pounds dropped by 8.85% (LBP 9.85 trillion) YTD March to LBP 101.46 trillion and foreign currency deposits fell by 1.08% ($0.93 billion) to $85.77 billion. On a monthly basis, LBP deposits decreased by LBP 9.81 trillion in March and FC deposits fell by $460.07 million.  As highlighted by the below table, the monthly drop in deposits during March is significantly higher than the monthly contractions witnessed in each of the trailing twelve months (TTM) as the war forced some depositors to tap into their bank accounts in order to cover relocation needs. In this context, the deposit dollarization rate reached 98.70% at end of March 2026 in comparison with 98.59% at end of year 2025 and 98.89% at end of March 2025. On an annual basis, total customer deposits narrowed by 2.73% (LBP 218.00 trillion) from a reading of LBP 7,996.32 trillion at end of March 2025.

On the lending front, loans to the private sector (residents and non-residents) rose by 0.68% (LBP 3.17 trillion) during the first quarter of 2026 to LBP 468.53 trillion, up from LBP 465.36 trillion at end of December 2025. More specifically, LBP denominated loans increased by 5.34% (LBP 0.56 trillion) to LBP 10.98 trillion while foreign currency loans rose by 0.57% ($29.21 million) to $5.11 billion. On a monthly basis, LBP denominated loans improved by LBP 0.08 trillion whereas FC denominated ones dropped by $5.06 million. The ratio of loans to deposits attained 6.02% at end of March 2026 compared to 5.91% at end of year 2025 and 6.33% at end of March 2025. More specifically, the ratio of LBP-denominated private sector loans to total LBP deposits stood at 10.82% in March compared to 9.36% in December 2025 and 12.76% in the third month of 2025 while the ratio of foreign currency-denominated private sector loans to total foreign currency deposits reached 5.96% at end of March 2026 in comparison with 5.86% at end of December 2025 and 6.25% in March 2025. On an annual basis, the loans portfolio sank by 7.37% (LBP 37.27 trillion) from a reading of LBP 505.81 trillion at end of March 2025.

On the equity front, the combined capital accounts of the resident banking sector contracted by 4.95% (the equivalent of $243.66 million or the counter value of LBP 21.81 trillion) in Q1-2026 to LBP 418.73 trillion ($4.68 billion) from LBP 440.54 trillion ($4.92 billion) at end of year 2025. On a monthly basis, the combined capital accounts fell by LBP 29.75 trillion ($332.38 million) in March after having risen by LBP 23.26 trillion ($259.87 million) in February and dropped by LBP 15.32 trillion ($171.14 million) in January. The monthly contraction in the capital accounts of the resident banking sector in March 2026 owes to some LBP 29.81 trillion drop in core capital which totally wiped out the slender LBP 0.06 trillion increase in supplementary capital. On an annual basis moreover, the combined equity of the resident banking sector rose by 3.06% (LBP 12.43 trillion, around $138.94 million) when benchmarked to the LBP 406.30 trillion ($4.54 billion) reading reported at end of March 2025.