ANNUAL REPORT 2016

MANAGEMENT DISCUSSION AND ANALYSIS

2.0. STRATEGY

Through its strategy and recent growth, as a result of a vast regional expansion ongoing since 2005, Bank Audi has stepped into the close circle of the largest and most diversified banking groups in the MENA region, delivering added value to all its stakeholders. That is how over a span of 10 years, Bank Audi’s profile was deeply transformed, to benefit today from the following competitive edges:
  • A strong franchise covering Commercial and Corporate Banking, Retail Banking, Private Banking and Capital Markets activities, and a well-known profile throughout the MENA region.
  • A strong diversification of operations by geography, with a presence in 11 countries through 10 banks and 3 financial companies in the MENA region, in Europe, and in Turkey.
  • A leading position in its main markets of presence, ranking as the largest banking group in Lebanon, the 7th largest in Egypt and the 9th in Turkey, as well as maintaining a leading position in Private Banking in the MENA region, with USD 11 billion in assets under management.
  • An experienced risk management team, with a focus on risk governance and a number of risk management committees at the Board and Senior Management levels, which support the determination and monitoring of the Group’s risk philosophy and appetite.
  • Strong Corporate Governance and transparency structures and practices, which have been recognised among the best in the region.
  • A diversified shareholder base which includes historical shareholders, international institutional investors, and individuals from the region.

Given the persisting challenging environment across the region, Management’s current short-term development strategy is based around consolidating and reinforcing the credit profile and positioning of its key entities in Lebanon, Egypt, Turkey, along with the development of the Private Banking activities, while maintaining the network ready to capture growth opportunities as soon as they arise.
  • In Lebanon – As Lebanon will remain a pivotal part of the Group’s overall activity, the Bank seeks to further reinforce and consolidate its leading position on the local market while increasing penetration in the corporate, SME and retail segments.
  • In Egypt – The Bank will continue to build a resilient and well-regarded franchise in Egypt.
  • In Turkey – Odea Bank aims to establish a well-fenced banking platform while improving efficiency and profitability.
  • At the level of Private Banking activities – The Bank looks to leverage solid expertise in Private Banking by reinforcing synergies across entities in Europe, the Near-East and the GCC.

In achieving those objectives, Management expects to deliver quality growth by efficiently meeting the needs of both businesses and individuals in the various countries of presence, and ensuring long-term sustainable value to all stakeholders. As the regional uncertainties alleviate, the Group is expected to resume the diversification and expansion strategy. Bank Audi’s key target in the longer run remains to further develop as a fully-integrated, pan-regional group dedicated to catering to a highly diversified client base among corporates and individuals.