CBL reveals a summary of the consolidated commercial banks’ balance sheet in its Main Financial Data and Indicators of Banks ( 1st quarter of 2023)

The consolidated budget of commercial banks showed a decline in its total items on both sides of assets and liabilities at the end of the first quarter of 2023. Where the total assets within the consolidated budget recorded about 140,539.4 million LYD, compared to 142,731.9 million LYD at the end of the first quarter of 2022, with a decline of 2,138.5 million LYD, at a rate of 1.5%. The following is a table summarizing the main items of the consolidated balance sheet of commercial banks:

The structure of the items constituting the assets in the consolidated balance sheet of the banks:

Banks’ deposits and balances with the Central Bank, including the required mandatory reserve, continued to be the main component of the banking sector’s assets, covering about 53.8% of the total assets at the end of the first quarter of 2023, while the share of the loans and credit facilities item in the asset structure increased to record about 16.7% of the total, compared to 15.0% at the end of the first quarter of 2022, which are still small percentages that reflect the lack of banks’ ability in utilizing the available money.

The structure of the items constituting the liabilities in the consolidated balance sheet of the banks:

The analyses of the structure of the items constituting liabilities in the consolidated financial position of banks at the end of the first quarter of 2023, show that third-party deposits with banks (customer deposits) represent the main source of financing, accounting for 74.9% of the total sources of bank funds, compared to about 68.3% at the end of the first quarter 2022. However, equities represent about 6.1% of the total sources of bank funds, compared to 5.8%.

Analysis of the components of the consolidated budget of commercial banks

Firstly: Assets:

1- Cash:

A- Cash in vaults and clearing accounts:

cash in vaults and clearing accounts increased by 1,234.8 million LYD, or 13.2%, to reach 10,570.3 million LYD at the end of the first quarter of 2023, compared to 9,335.6 million LYD at the end of the first quarter of 2022, where the cash in banks’ vault increased by 688.2 million LYD, while the clearing accounts raised by 546.5 million of LYD at the end of the first quarter 2023, compared to what it was in the same period of 2022, and the following table shows these developments:

B – Accounts and deposits with the Central Bank and other banks:

The commercial banks’ deposits with the Central Bank and other banks between them amounted to about 88,566.2 million LYD at the end of the first quarter of 2023, compared to 92,956.3 million LYD at the end of the first quarter of 2022, declining by about 4,390.1 million LYD. This was because of a decrease in the banks’ deposits and balances with the Central Bank by about 5,986.1 million LYD. This was a result of the decrease in the balance of certificates of deposit with the Central Bank by about 10,677.0 million LYD, which was higher than the increase in the balance of demand deposits with the Central Bank, which increased by about 4,690.9 million LYD. The following table shows the details of this item:

2- Investments:

The total item of the investments’ balance in commercial banks recorded 1,763.85 million LYD at the end of the first quarter of 2023, compared to 4,679.6 million LYD at the end of the same period of 2022, decreased by 2,916.2 million LYD. This reduction was a result of the maturity date of the Bank of Commerce and Development for the principal debt (3 billion LYD) invested in treasury bonds. The following table illustrates the details:   

3- Loans and credit facilities:

The total balance of credit advanced by commercial banks increased from 21,471.0 million LYD at the end of the first quarter of 2022 to reach 23,519.6 million LYD at the end of the first quarter of 2023, with a growth rate of 9.5%. Further, the loans and credit facilities granted to the total deposit liabilities constituted 22.3% and constituted, 16.7% of the total assets. While the balance of loans advanced to the private sector at the end of the first quarter of 2023 amounted to 15,837.2 million LYD, which equals 67.3% of the total loans and credit facilities, while the balance of loans advanced to the public sector constituted the remaining 32.7%, which amounted to 7,682.4 million LYD. And by analyzing the components of the credit portfolio, the increase in the total credit balance advanced by commercial banks was due to the increase in the items of Murabaha financing to individuals (social advances) and other loans.

Secondly: Liabilities:

1- Customer deposits with commercial banks:

The total balance of customers’ deposits with commercial banks (Deposit Liabilities) increased by 7,651.8 million LYD, rising from 97,511.3 million LYD at the end of the first quarter of 2022 to reach 105,269.9 million LYD at the end of the first quarter of 2023, hence, recording a growth rate of 8.0%. As for the distribution of deposits with commercial banks by type of deposit, demand deposits and payment orders constituted 81.7% of the total deposits, while time deposits and cash insurance constituted 18.0% of the total deposits, and savings deposits constituted only 0.3% of the total deposits.

Demand deposits and payment orders: Demand deposits and payment orders raised at the end of the first quarter of 2023 by 8,282.3 million LYD, to record 85,976.0 million LYD, compared to 77,693.8 million LYD at the end of the first quarter of 2022.

Time deposits and cash insurances: The item of time deposits and cash insurances declined at the end of the first quarter of 2023 by 472.6 million LYD, to record 18,990.7 million LYD, compared to 19,463.3 million LYD at the end of the first quarter of 2022. It should be noted that the item of cash insurance is against letters of credit.

Saving deposits: The balance of saving deposits decreased at the end of the first quarter of 2023 by 51.1 million LYD, to record 303.2 million LYD, compared to 354.0 million LYD at the end of the first quarter of 2022.

With regard to the distribution of total customer deposits with commercial banks (private, government and public)

The private sector deposits increased by 7,051.3 million LYD at the end of the first quarter of 2023, to reach 45,342.7 million LYD, of which 12,858.7 million LYD are in government deposits, which consist of deposits of ministries, government agencies and institutions, and deposits of: the Social Security Fund, the Economic, Social Development Fund, and the deposits of the Libyan Fund for Development and Investment, compared to 38,291.4 million LYD in deposits for the public and government sectors at the end of the first quarter of 2022.

As for private sector deposits with banks, they also increased at the end of the first quarter of

2023 by 707.2 million LYD, or by 1.2%, to reach 59,927.1 million LYD, compared to about 59,219.9 million LYD at the end of the first quarter of 2022.

2- Accounts overdrawn with correspondents abroad:

The balance of exposed accounts with the correspondents abroad was 119.8 million LYD at the end of the first quarter 2023, higher than it was at the end of the first quarter of 2022. These exposed accounts are only a result of the delay of some correspondent banks abroad in settling their accounts with local banks.

3- Equity:

The balance of equity of commercial banks increased from 8,248.7 million LYD at the end of the first quarter of 2022, to reach 8,664.7 million LYD at the end of the first quarter of 2023, which was due to the increase in the paid-up capital of some banks, as well as the legal and unallocated reserves, while the profits of banks during the first quarter of 2023 decreased by 35.4% to reach 228.0 million LYD, compared to what they were during the same period in 2022, which amounted to about 352.8 million LYD.

4- Provisions:

The balance of provisions recorded an increase by 1,237.6 million LYD at the end of the first quarter 2023 to reach 9,466.5 million LYD, compared to 8,228.9 million LYD at the end of the first quarter 2022. The increase was concentrated in the general provisions as shown in the following table: