Founded: 1949
Total Assets*: US$3.50 billion
Customer Deposits*: US$2.80 billion
Ranking by Assets*: 16
(*as of Dec 31, 2021, ABL Almanac 2022, converted at LL1507.5/US$)
Background
The Abou Jaoudeh family founded BLC in 1949 under the name Banque Libanaise pour le Commerce.[1] Over half a century of operations, the bank opened subsidiaries in France (1956), Switzerland (1961), and Brazil (1964).[2] After a period of senior-level mismanagement, Banque du Liban (BDL), Lebanon‘s central bank, intervened in 2002, forcibly buying out BLC shares and initiating a restructuring.[3]
In 2005, the Qatar Supreme Council for Economic Affairs and Investment bought the bank from BDL. In 2006, ownership was briefly transferred to the Qatar Investment Authority, Doha’s primary sovereign wealth fund, before Fransabank acquired 97.5% of BLC in 2007.[4]
Board
Nadim Kassar, the chairman and General Manager of BLC is related to Adnan and Adel Kassar [see below].
Henri de Courtivon is also a “Indirect3” PEP due to his seat on the board of BLC’s parent bank, Fransabank. As per The Alternative’s methodology, an Indirect3 PEP is a person that has “ownership or management control in a legal entity in which any of the persons who are classified under Direct/Indirect1/Indirect2 has an economic interest”.
Shareholders
According to the most recent complete data available, Fransabank and Fransa Invest Bank hold 81.88% and 6.25% stakes, respectively.[5] Fransa Invest Bank is in turn owned by Fransabank. Another 10% was bought back by BLC.
The PEPs among BLC’s shareholders are Adnan and Adel Kassar, and Nehmé Tohmé.
Adnan,[6] however these were transferred to Cayman Island-based companies Cedars I and Cedars II.[7] A BLC bank representative confirmed to The Alternative that the Kassar brothers retained great than 10% equity in BLC. The only way in which this is possible is that they own – at least in part – either Cedars I or Cedars II.
Adnan Kassar is a former minister of economy and trade (2004-5) and of sate (2009-11). Adel Kassar is his brother.
Nehmé Tohmé owns a 1.3% stake in BLC.[8] he served as minister of the displaced from 2005 to 2008.
When contacted for comment, a BLC representative stated that Adnan and Adel Kassar held 38.59% and 19.68% respectively. The Alternative could not find any information detailing the sale of Adel Kassar’s equity
[1] ‘BLC Bank’, accessed 13 July 2023, https://www.blcbank.com/content/about/milestones.aspx?modid=1.1
[2] ‘BLC Bank’.
[3] ‘BLC Bank’.
[4] ‘BLC Bank’.
[5] Ministry of Justice, ‘Commercial Registry of Lebanon’, accessed 9 March 2023, http://cr.justice.gov.lb/.
[6] Ministry of Justice.
[7] ‘Shareholders’, accessed 13 July 2023, https://www.fransabank.com/corporate-governance/shareholders.
[8] Ministry 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 banks data was 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 [email protected].
