Libyan banks report 145% revenue surge in third quarter

Libyan banks recorded a outstanding 145.4% improve in income throughout the third quarter of 2024, reaching 1,639.4 million Libyan dinars in comparison with 668.0 million dinars in the identical interval final yr, in keeping with knowledge launched by the Central Bank of Libya.

The banking sector’s consolidated monetary statements revealed that whole property grew by 24.1%, rising from 145.2 billion dinars on the finish of the third quarter of 2023 to 180.2 billion dinars within the corresponding interval of 2024. This development was primarily attributed to main banks increasing their financing operations.

Customer deposits confirmed important enchancment, growing by 25.5% from 110.4 billion dinars to 138.5 billion dinars year-on-year, the central financial institution’s report indicated.

The substantial revenue development was mirrored within the curiosity margin, which reached 13.0% throughout the third quarter of 2024, with additional enhancements anticipated all year long.

The central financial institution attributed this constructive pattern to elevated fee revenues from Murabaha providers (Mark up or Cost plus financing) and better curiosity earnings on balances and deposits with overseas correspondents.

In a constructive improvement for the sector’s asset high quality, the non-performing mortgage ratio decreased from 22.2% on the finish of 2023 to 21.6% by the tip of the third quarter of 2024. The enchancment was primarily because of the mortgage portfolio rising at a quicker charge than the rise in non-performing loans.

The figures counsel a strong efficiency throughout Libya’s banking sector, marked by important enhancements in profitability, asset development, and deposit base enlargement, regardless of ongoing financial challenges.