Banking is Lebanon’s most renowned service sector and a pillar of its economy. The sector has weathered major domestic, regional and international crises over the past two decades, particularly the global financial crisis of 2008.

Société Générale de Banque au Liban (SGBL), one of Lebanon’s leading commercial banks, celebrated its 60th anniversary last year, and we are aiming to enhance our regional presence so as to become a flagship bank in the region.

Established in 1953 in Beirut, the bank has built on the successful experience of Société Générale’s long-lived universal banking model, which has proven its robustness in a challenging environment. SGBL offers an array of services under retail, corporate and private banking. The bank’s objective is to target a wide range of customers, while maintaining a balance between business lines, and promoting synergies.

Our aim is first and foremost to have clients – whether individual, professional or corporate – who are satisfied and who truly feel that their bank backs them in their endeavours. This target fits into our broader commitment to actively support sustainable economic growth in the countries where we are present.

Fuelling growth
Lebanon is a relatively small market and the banking sector is highly competitive. Nevertheless, although the domestic market still offers big opportunities that should materialise with time, leading banks have been actively developing their business abroad in a move to diversify revenues.

Regional markets such as Jordan, Iraq, and Egypt offered what could qualify as ‘natural’ market expansion opportunities. Even some countries in Europe, such as Cyprus, Turkey and even Switzerland and the UK, have also offered opportunities for expansion. Lebanon’s wide diaspora also represented development opportunities for Lebanese bankers. At the top of the list are a number of African countries with large Lebanese communities, which have been tapped by Lebanese banks seeking to broaden their business networks.

SGBL group operates banks in Lebanon, Jordan and Cyprus, representing a retail network of 90 branches. In addition to banking, the group encompasses specialised subsidiaries in industries such as life insurance, financial brokerage, wealth management, and leasing.

The bank places a lot of focus on its client relationships, on a comprehensive offering of products and services, and on an efficient international network. And the model has been yielding good results. Getting closer to our customer is one of our main growth drivers. Customer satisfaction is at the heart of our strategy, and we believe a bank should be perceived by clients as a partner, which entails proximity as well as availability. Our clients – both retail and corporate – appreciate that, as much as they do our international network, which ensures them access to financial solutions and expertise across markets. This gives us a competitive edge that is appreciated by our clients, especially when it comes to trade finance, project finance and private banking.

Tapping new markets
The group has witnessed substantial growth over the past three years, despite a highly challenging environment in all of Lebanon, Jordan and Cyprus, and we have managed to weather the storm. SGBL’s balance sheet has grown almost three-fold over the past five years, reaching $13bn by the end of 2013. Profitability followed: net profit reached $137m in 2013, and the bank boasts a return-on-equity ratio of 18.9 percent. In conjunction with this growth, equity was strengthened both through fresh money and incorporation of profits. In the aftermath of the global crisis of 2008, clients, and stakeholders in general, became very keen on dealing with a bank whose financial strength was unquestionable. SGBL’s capital ratio of 11.18 percent at 2013 year-end exceeds Basel III’s international requirements, as well as domestic regulations.

Looking beyond 2014, our group is in a position to seize growth opportunities, particularly by expanding into new geographic markets. Despite the tough competition that characterises the Lebanese banking sector, we are confident that growth can still be achieved in some sectors in our home market. New opportunities emerge regularly and some represent huge potential. Oil and gas exploration and extraction, for instance, is a whole new market for us to tap into. Such growth opportunities will obviously depend on developments on the political and economic front, but we expect Lebanon’s economy to regain momentum in the medium term.

Looking beyond our home market, diverse opportunities are still out there in the Middle East for Lebanese banks to capitalise on.

At SGBL, we are confident that our experience, broad network and flexible business model are invaluable assets for tapping new markets and new businesses.