BLF and the GTFP October 23, 2008

BLF and the GTFP

October 23, 2008Paris, France

Maurice IskandarHead of International

Banque Libano-Française

Contents

• Briefing: Lebanese banking sector

• BLF - An overview

• BLF – Key figures

• BLF Group - Trade finance statistics

• BLF and the GTFP

Lebanese Banking Sector, July 2008

• 55 commercial banks, 12 investment banks and 16 representative offices of foreign banks

• Total Assets USD 90.7 bln, as at August 08. 10.2% increase since end of 2007 (up from USD 82.3 bln)

• Total Deposits USD 76.4 bln, as at August 08. 11.8% increase since end of 2007 (up from USD 68.3 bln) 75% of deposits are in USD

• Equity of banks USD 6.6 bln, as at August 08. 5% increase since end of 2007 (up from USD 6.3 bln)

• GDP of Lebanon stood at USD 24.6 bln at the end of 2007 (1/3 of the banking sector size)

BLF – An Overview

1930 Branch of the French bank Compagnie Algérienne de Crédit et de Banque

1967 Established as a bank under Lebanese law, with 72% French shareholding

1970 Banque Indosuez acquires 5% direct interest in BLF capital

1976 Established a subsidiary in Paris, Banque Libano-Française (France) which became in 1989 Banque Française de l’Orient SA

1992 Banque Indosuez increases shareholding in BLF to 51%

1996 Crédit Agricole acquires Banque Indosuez (now CALYON)

2004 CALYON reduces its participation from 51% to 9%

2006 Successful issue of USD 100 million preferred shares

2006 Acquisition of 78.3% of Banque SBA established in Paris, with a branch in Limassol, a branch in Damascus Free Zone, a financial subsidiary in Geneva

2007 Obtained approval of the Syrian authorities to establish Bank Al-Sharq (operations to be launched prior to end 2008)

2008 Applied for a representative office license in Abu Dhabi

BLF – Key Figures 1/2

• High level of liquidity in foreign currencies (USD 1.5 bln) placed with major international correspondents in addition to liquid deposits with the Central Bank of Lebanon

• Lowest exposure among peers to Lebanese government risk denominated in foreign currency (less than 5% of deposits in foreign currencies)

• Total Consolidated Assets for half year 2008 reached USD 6.2 bln showing a 3.3% increase since end of 2007 (up from USD 6 bln)

BLF – Key Figures 2/2

• Total Deposits for half year 2008 reached USD 5.1 bln showing a 2.6% increase since end of 2007 (up from USD 5 bln) 75% of deposits are in foreign currency

• Total equity of USD 480 mln which is one of the highest in the sector leading to a CAR of 19%

• Numerous agreements signed with regional and international institutions such as the International Finance Corporation (IFC), Overseas Private Investment Corporation (OPIC), European Investment Bank (EIB), Agence Française de Développement (AFD), Arab Trade Finance Program (ATFP) among others

BLF Group – Trade Finance Statistics

BLF holds a leadership position in Trade Finance in Lebanon,with strong technical expertise (ranked 3rd in total L/C openings)

in USD millionsBLF Number Volume Number Volume Number VolumeImport L/Cs 1 648 377 1 830 516 1 173 509Export L/Cs 209 54 319 149 236 249Guarantees 113 51 135 101 109 175Documentary Collections 1 931 119 2 176 159 1 573 163Total BLF 3 901 601 4 460 925 3 091 1 096

2006 2007 9 months 2008

BLF Group – Trade Finance Statistics

Banque SBA is the most active Lebanese-owned bankin France in Trade Finance

in USD millionsBanque SBA Number Volume Number Volume Number VolumeImport L/Cs 1 201 649 1 084 759 799 559Export L/Cs 380 299 253 325 199 246Guarantees 379 144 410 244 265 136Documentary Collections 1 132 344 1 175 531 748 308Total SBA 3 092 1 436 2 922 1 860 2 011 1 249

in USD millionsTotal Group BLF Number Volume Number Volume Number VolumeImport L/Cs 2 849 1 026 2 914 1 275 1 972 1 068Export L/Cs 589 353 572 474 435 495Guarantees 492 195 545 345 374 311Documentary Collections 3 063 463 3 351 690 2 321 471Total Group BLF 6 993 2 037 7 382 2 785 5 102 2 345

2006 2007 9 months 2008

2006 2007 9 months 2008

BLF and the GTFP

• BLF / IFC partnership goes back to 1996 long before the GTFP launch

• October 2005, BLF joined the GTFP as issuing bank. BLF was the second bank worldwide to become part of the program

• In 2006, BLF joins the GTFP as confirming bank

• June 2007, IFC awarded “Best Use of GTFP Network by an Issuing Bank” to BLF

• Total transactions done by BLF under GTFP is USD 131 mln (104 transactions). Transactions include confirmation of:

• LCs• Bid Bonds• Performance Bonds• Advance Payment Guarantees• Financial Guarantees

• Countries where BLF used GTFP include Australia, Saudi Arabia, UAE, Qatar, France, Japan, Greece, Turkey, etc.