Libyan banks report 145% profit surge in third quarter
Banking sector assets climb 24% year-on-year
Libyan banks recorded a remarkable 145.4% increase in profits during the third quarter of 2024, reaching 1,639.4 million Libyan dinars compared to 668.0 million dinars in the same period last year, according to data released by the Central Bank of Libya.
The banking sector’s consolidated financial statements revealed that total assets grew by 24.1%, rising from 145.2 billion dinars at the end of the third quarter of 2023 to 180.2 billion dinars in the corresponding period of 2024. This growth was primarily attributed to major banks expanding their financing operations.
Customer deposits showed significant improvement, increasing by 25.5% from 110.4 billion dinars to 138.5 billion dinars year-on-year, the central bank’s report indicated.
The substantial profit growth was reflected in the interest margin, which reached 13.0% during the third quarter of 2024, with further improvements expected throughout the year.
The central bank attributed this positive trend to increased commission revenues from Murabaha services (Mark up or Cost plus financing) and higher interest earnings on balances and deposits with foreign correspondents.
In a positive development for the sector’s asset quality, the non-performing loan ratio decreased from 22.2% at the end of 2023 to 21.6% by the end of the third quarter of 2024. The improvement was primarily due to the loan portfolio growing at a faster rate than the increase in non-performing loans.
The figures suggest a robust performance across Libya’s banking sector, marked by significant improvements in profitability, asset growth, and deposit base expansion, despite ongoing economic challenges.
How to submit an Op-Ed: Libyan Express accepts opinion articles on a wide range of topics. Submissions may be sent to oped@libyanexpress.com. Please include ‘Op-Ed’ in the subject line.
- Libya holds vast untapped oil reserves - December 03, 2024
- Gaddafi-era intelligence chief’s trial adjourned to January 2025 - December 03, 2024
- Western powers urge Syria conflict de-escalation - December 02, 2024