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July 2008 - Business News
July 2010

Banking assets pass USD 40bn mark for first time

The total value of assets held by Syria's banking sector has hit a record level of SYP 1.99trn (USD 42.3bn), according to figures released last month by the Central Bank of Syria.

State-owned banks continue to dominate the industry, with assets totalling SYP 1.48trn (USD 31.5bn) at the end of March, accounting for 74.5 percent of the sector's total assets. This represents a year-on-year growth rate of 9.5 percent and a growth rate of 1.3 percent for the first three months of the year.

Private banks, both conventional and Islamic, held assets of SYP 508bn (USD 10.8bn), with year-on-year growth of 29.04 percent. Assets at these banks grew by 5 percent during the first quarter of 2010. Islamic institutions represented 3.7 percent of total banking assets and 14.6 percent of all private bank assets.

The total loan portfolio, excluding loans made to the central government, rose 14.7 percent year-on-year to SYP 1.04trn (USD 22.1bn). The loan portfolio of state banks rose by 11 percent year-on-year, private conventional banks by 33 percent and private Islamic banks by 64 percent. Lending by Islamic banks made up 2 percent of all lending by Syrian banks. All sectors benefited from the increase in loans and other credit facilities, except for retail and wholesale trade.

Claims by the private sector – businesses and households – increased 24.5 percent in the first three months of the year to SYP 517bn (USD 11bn). Public companies accounted for 54.4 percent of the banking sector's lending portfolio at the end of March.

Deposits grew 12.3 percent year-on-year to stand at SYP 1.23trn (USD 26.2bn) at the end of March. This represents a 3.15 percent increase for the quarter. Foreign currency deposits fell 15.9 percent during the same period due to low interest rates on the USD and EUR, but still represented 14.7 percent of all deposits.

Syria's 14 private banks made a profit of SYP 2.6bn (USD 55m) last year.

LENDING BY SECTOR (SYPm)
31/03/2009 31/03/2010 % change % of total
Agriculture 125,282 199,448 59.2 19
Mining, Manufacturing, Utilities 56,118 78,989 40.8 7.5
Building and Construction 123,111 147,547 19.8 14
Wholesale and Retail Trade 485,129 457,529 -5.7 43.9
Others 123,547 163,874 32.6 15.6
Total* 913,187 1,047,387 14.7 100

Source: Central Bank of Syria
*excluding lending to the central government