Exclusive: The Research and Statistics Department of the Central Bank of Libya has released the report on banks’ financial data and indicators for 2022

The Research and Statistics Department of the Central Bank of Libya has issued a report on the most important financial data and indicators for Libyan commercial banks for the year of 2022. The report contained deep details of financial data and indicators, in addition to a special chapter on financial soundness indicators.

The total assets of banks (excluding statutory accounts) increased from 136.0 billion dinars at the end of 2021 to about 148.5 billion dinars at the end of 2022, a growth rate of 9.2%. Liquid assets (amounting to 99.1 billion dinars) accounted for 66.7% of total assets.

The total deposits of banks (on demand and certificates of deposit) with the central bank, including the mandatory reserve, increased from about 78.6 billion dinars at the end of 2021 to about 83.4 billion dinars at the end of 2022, at a growth rate of 6.1%, of which the mandatory reserve constitutes about 20.4 billion dinars.

The total amount of credit granted by banks increased from 19.6 billion dinars at the end of 2021 to about 23.0 billion dinars at the end of 2022, at a growth rate of 17.0%. Loans and credit facilities granted to total deposit liabilities constituted 22.5%, while they accounted for 15.5% of the total assets. The balance of loans granted to the private sector amounted to 15.5 billion dinars at the end of 2022, representing 67.6% of the total credit facilities granted, while the balance of loans granted to the public sector accounted for the remaining 32.4%, amounting to about 7.5 billion dinars.

The coverage ratio of doubtful debts to the total loans and facilities granted reached 16.8% in 2022, compared to 18.7% in 2021.

Customer deposits at banks increased from 92.1 billion dinars at the end of 2021 to 102.1 billion dinars at the end of 2022, an increase of 10.8%. Demand deposits accounted for 81.7% of total deposits, while time deposits accounted for 17.9% of total deposits. Savings deposits accounted for only 0.3% of total deposits.

Regarding the distribution of these deposits, private sector deposits amounted to 58.8 billion dinars at the end of 2022, representing 57.6% of total deposits, while the balance of public and government sector deposits amounted to 43.3 billion dinars, representing the remaining 42.4%. Of this amount, 31.1 billion dinars were deposits for public sector companies and institutions, while around 12.2 billion dinars were government deposits.

The total equity of banks increased from 7.5 billion dinars at the end of 2021 to 8.6 billion dinars at the end of 2022, with a growth rate of 13.3%.

The banks’ profits decreased by 29.4% during 2022, reaching 849.7 million dinars, compared to around 1,176.9 million dinars in 2021.

The return on total assets decreased to 0.6% in 2022 compared to around 0.9% in 2021, as a result of the decrease in profits during 2022.

The overall capital adequacy ratio of banks collectively recorded about 15.7% at the end of 2022, down from about 16.6% in 2021. This is due to the increase in the size of risk-weighted assets, which grew at a higher rate than the growth in capital base. Overall, this ratio is higher than the ratio set by the central bank and compliant with the requirements of the Basel Committee.

The number of banks included in this report was 20 banks (including the Libyan Dinar Unit of the Libyan Foreign Bank) at the end of 2022, and these banks operate through 580 branches and agencies.