Founded: 1962
Total Assets*: US$2.87 billion
Customer Deposits*: US$2.42 billion
Ranking by Assets*: 19
(*as of Dec 31, 2021, ABL Almanac 2022, converted at LL1507.5/US$)
Background
Lebanese Swiss Bank (LSB) was founded in 1962. In 1973, the bank was bought by Credit Suisse and henceforth operated under the Credit Suisse (Moyen Orient) SAL.1‘Overview – LSB’, accessed 13 July 2023, https://www.lebaneseswissbank.com/about-us/overview.↓ In 1988, the bank was acquired by a group of Lebanese businessmen and investors and was subsequently renamed Lebanese Swiss Bank SAL.2‘Overview – LSB’.↓
Board of Directors
Ahmad Hamdan is a board member and an “Other PEP” as he is a former judge and President of the Financial Judiciary and Audit Court.3Ministry of Economy and Trade, ‘Activities | Lebanese Excellence Award LEA | Lebanese Excellence Award Jury Panel Private Sector/NGOs and Public Sector | Public Sector | Ministry Of Economy & Trade, Republic of Lebanon’, accessed 17 July 2023, http://www.economy.gov.lb//en/services/quality-unit—qualeb/activities/lebanese-excellence-award-lea/lebanese-excellence-award-jury-panel-private-sectorngos-and-public-sector/public-sector. ↓The Financial Judiciary and Audit Court is the highest administrative tribunal that oversees the management of public funds.4Nicolas Melki, ‘Public Finances Reach Court of Audit’, Executive Magazine (blog), 5 April 2019, https://www.executive-magazine.com/economics-policy/public-finances-reach-court-of-audit.↓
Shareholders
Amongst LSB’s shareholders are two PEPs.
The first is Khater Abi Habib, the chairman and general manager,5‘Khater Abi Habib — Chairman at Kafalat || Lebanon | BDL Accelerate 2015’, accessed 13 July 2023, https://2015.bdlaccelerate.com/speakers/khater-abi-habib-chairman-at-kafalat/.↓ making him an “Other PEP”. Abi Habib owns a 6.53% stake in LSB and was formerly the bank’s vice president.6Ministry of Justice, ‘Commercial Registry of Lebanon’, accessed 9 March 2023, http://cr.justice.gov.lb/.↓ 7Ministry of Justice.↓
The NGID is the public body that guarantees depositors’ funds (up to LL75 million) in the event of a bank going bankrupt.8Abou Jaoude et al., ‘In Brief: Banking Regulatory Framework in Lebanon’, Lexology, 16 March 2022, https://www.lexology.com/library/detail.aspx?g=ed6ce9cf-a7f9-4703-b7eb-5490ceab5a79.↓ The institute was set up in 1967 in the wake of Intra Bank’s collapse and its capital is composed of nominal shares owned by the state and Lebanese banks. All banks are required to pay a fee on an annual basis, which the state matches.9Jaoude et al., ‘In Brief’.↓ The board of the NGID is appointed by decree. 10Jaoude et al., ‘In Brief’.↓
The second PEP amongst LSB’s shareholders is Abdullah bin Mohammed bin Saleh al-Athel. He is also classified as an “Other PEP”, given that he was appointed as the Deputy Governor of Defence Acquisition at the Saudi General Authority for Military Industries (GAMI) in May 2019.11Arab News, ‘Mohammed Bin Saleh Al-Athel, Deputy Governor of the Saudi General Authority for Military Industries | Arab News’, accessed 13 July 2023, https://www.arabnews.com/node/1583166/saudi-arabia. ↓In this role he is charge of the kingdom’s armament procurement activities.12‘Our Leadership | GAMI’, accessed 13 July 2023, https://www.gami.gov.sa/en/our-leadership.↓
Prior to his most recent appointment to GAMI, he served on the body’s board as secretary general and before that, as a member of the armaments contracts review committee at the Saudi Ministry of Defence.13Arab News, ‘Mohammed Bin Saleh Al-Athel, Deputy Governor of the Saudi General Authority for Military Industries | Arab News’, accessed 13 July 2023, https://www.arabnews.com/node/1583166/saudi-arabia.↓ Al-Athel owns a 3.85% stake of Lebanese Swiss Bank.14Ministry of Justice, ‘Commercial Registry of Lebanon’, accessed 9 March 2023, http://cr.justice.gov.lb/.↓
Disclaimer
All content provided in this report (the Report) is for informational purposes only and does not constitute legal, financial or any other professional advice. The Alternative has made every attempt to ensure the accuracy and reliability of the information provided in the Report. However, due to the opacity of available sources of information, The Alternative has relied on the most up-to-date and self-reported figures from the Association of Banks in Lebanon (ABL) and its member banks, when available. When ABL and bank data were not available, The Alternative relied on physical copies of Lebanon’s commercial registry, online databases and other credible sources. In addition, The Alternative contacted each of the bank’s communications departments for confirmation of data regarding the shareholding and management of said banks. Only Bank Audi and BLOM Bank provided relevant information, both of which have been included in their entirety. Amongst others, the sources of the Report include various commercial registries, official bank websites, online aggregators, databases dedicated to company registration, the Organised Crime and Corruption Reporting Project (OCCRP), Bilanbanques reports, and many others.
The information provided in the Report is done “as is” without warranty of any kind, express or implied. The Alternative shall not be held liable for any errors or omissions in this information nor for the availability of this information. The Alternative does not accept any responsibility or liability for the accuracy, content, completeness, legality, or reliability of the information contained in the Report. Furthermore, The Alternative shall not be liable for any losses or damages from the display or use of this information. If anyone has information relating to the Report, The Alternative welcomes it. All information sent to The Alternative will undergo a thorough validation process, and the report will be updated accordingly. For any relevant information or inquiries, please contact info@thebadil.com.
Footnotesالهوامش
- 1‘Overview – LSB’, accessed 13 July 2023, https://www.lebaneseswissbank.com/about-us/overview. ↩︎
- 2‘Overview – LSB’. ↩︎
- 3Ministry of Economy and Trade, ‘Activities | Lebanese Excellence Award LEA | Lebanese Excellence Award Jury Panel Private Sector/NGOs and Public Sector | Public Sector | Ministry Of Economy & Trade, Republic of Lebanon’, accessed 17 July 2023, http://www.economy.gov.lb//en/services/quality-unit—qualeb/activities/lebanese-excellence-award-lea/lebanese-excellence-award-jury-panel-private-sectorngos-and-public-sector/public-sector. ↩︎
- 4Nicolas Melki, ‘Public Finances Reach Court of Audit’, Executive Magazine (blog), 5 April 2019, https://www.executive-magazine.com/economics-policy/public-finances-reach-court-of-audit. ↩︎
- 5‘Khater Abi Habib — Chairman at Kafalat || Lebanon | BDL Accelerate 2015’, accessed 13 July 2023, https://2015.bdlaccelerate.com/speakers/khater-abi-habib-chairman-at-kafalat/. ↩︎
- 6Ministry of Justice, ‘Commercial Registry of Lebanon’, accessed 9 March 2023, http://cr.justice.gov.lb/. ↩︎
- 7Ministry of Justice. ↩︎
- 8Abou Jaoude et al., ‘In Brief: Banking Regulatory Framework in Lebanon’, Lexology, 16 March 2022, https://www.lexology.com/library/detail.aspx?g=ed6ce9cf-a7f9-4703-b7eb-5490ceab5a79. ↩︎
- 9Jaoude et al., ‘In Brief’. ↩︎
- 10Jaoude et al., ‘In Brief’. ↩︎
- 11Arab News, ‘Mohammed Bin Saleh Al-Athel, Deputy Governor of the Saudi General Authority for Military Industries | Arab News’, accessed 13 July 2023, https://www.arabnews.com/node/1583166/saudi-arabia. ↩︎
- 12‘Our Leadership | GAMI’, accessed 13 July 2023, https://www.gami.gov.sa/en/our-leadership. ↩︎
- 13Arab News, ‘Mohammed Bin Saleh Al-Athel, Deputy Governor of the Saudi General Authority for Military Industries | Arab News’, accessed 13 July 2023, https://www.arabnews.com/node/1583166/saudi-arabia. ↩︎
- 14Ministry of Justice, ‘Commercial Registry of Lebanon’, accessed 9 March 2023, http://cr.justice.gov.lb/. ↩︎
