Central Bank of Libya published a report of the important financial data of the commercial banks, where it drew a summary of banks’ performance at the end of the first quarter of 2023, and showed a number of evolutions compared to the performance in the same period of 2022, the changes are as follows:

The total assets of commercial banks (excluding regular accounts) decreased by 1.5%, declining from 142.7 billion LYD at the end of the first quarter 2022 to about 140.6 billion LYD at the end of the first quarter 2023. The liquid assets (amounting to 92.1 billion LYD) formed about 65.7% of the total assets.

Commercial banks’ total deposits (demand deposits and certificates of deposit) with the Central Bank, including the mandatory reserve, decreased by 7.3%, dropping from about 81.6 billion LYD at the end of the first quarter 2022 to almost 75.7 billion LYD at the end of the first quarter 2023.

The total credit advanced by commercial banks increased by 9.5%, raising from 21.5 billion LYD at the end of the first quarter 2022 to reach 23.5 billion LYD at the end of the first quarter 2023, hence, the advanced loans and credit facilities accounted for 22.3% of total deposit liabilities, whereas they accounted for 16.7% of the total assets. The total loans advanced to the private sector at the end of 2022 amounted to 15.8 billion LYD, this formed 67.3% of the total loans and credit facilities advanced, while the total loans advanced to the public sector constituted the remaining 32.7%, which amounted to about 7.7 billion LYD.

It should be noted that, when reviewing the components of the banks’ credit portfolio, the advances extended to the private sector were the main reason behind the increase in the credit balance advanced by banks, as it increased by 1.2 billion LYD at the end of the first quarter of 2023 compared to the same in the year 2022, as this increase was concentrated in the item (Individual Murabaha).

The coverage ratio of the doubtful debts provision for the total loans and facilities advanced reached 16.3% in the first quarter 2023, compared to 17.2% the same period of 2022.

Customers’ deposits with commercial banks grew by 8.0%, rising from 97.5 billion LYD at the end of the first quarter of 2022, to reach 105.3 billion LYD at the end of the first quarter of 2023. Demand deposits represented 81.7% of the total deposits, while time deposits were 18.0% of total deposits, and savings deposits constituted the remaining portion, which was 0.3% of total deposits.

Regarding the distribution of these deposits, the private sector deposits amounted to 59.9 billion LYD at the end of the first quarter of 2023, which means 56.9% of the total deposits, while the public and government sector deposits constituted the remaining 43.1%, which was 45.3 billion LYD, of which 32.4 billion LYD deposited by public sector companies and institutions, and about 12.9 billion LYD was government deposits.

Commercial banks’ total equity increased by 5.0%, rising from 8.2 billion LYD at the end of the first quarter of 2022, to reach 8.7 billion LYD at the end of the first quarter of 2023. As a result of the increase in the paid-up capital of some banks, as well as in reserves.

During the first quarter of 2023, the commercial banks’ profit declined by 35.4% to reach 228.0 million LYD, compared to what they were during the same period of 2022, which recorded about 352.8 million LYD.

The combined banks’ total capital adequacy rate was almost 15.6% at the end of the first quarter of 2023, slightly lower than it was at the end of the year 2022, which was 15.7%.

The number of banks whose data are included in this report reached 20 banks (including the Libyan Foreign Bank’ Libyan dinar unit) at the end of the first quarter of 2023, and these banks operate through 610 branches and agencies.

Commercial Banks’ Branching:

At the end of first quarter 2023, the number of banks operating in Libya and whose data are included in this report were 20 banks (including the Libyan Dinar unit at the Libyan Foreign Bank), these banks operate through 610 banking branches and agencies.

Commercial Banks’ Density:

Banking density during the first quarter of 2023 reached about 12.0 thousand inhabitants per branch or agency, compared to about 12.1 thousand inhabitants per branch or agency in 2022.

Banking Concentration:           

The degree of banking concentration means that a small number of commercial banks account for the largest proportion of banking activities, whether in terms of assets, deposits, credit, or in terms of the size of equities. Regarding the market share of commercial banks in Libya, at the end of the first quarter of 2023, out of the 20 banks; the assets of the five major banks (Al-Jumhuriya, National Commercial, Al-Wahda, Sahara, and Commerce and Development) were accounted for 71.5% of the total assets of the banking sector, and the Jumhouria Bank alone accounted for 28.5% of the total assets of the banking sector.

Additionally, at the end of the same period, the deposits and loans of the five major banks accounted for 71.9% and 83.5%, respectively, of the total deposits and loans of the banking sector.