2010 Stand Alone Financial Statements

Bank Audi sal - Audi Saradar Group

Stand Alone Audited Balance sheet as at December 31, 2010

(LBP million)

Assets

31/12/2010

31/12/2009

Cash and balances with Central Banks

3,818,551

3,982,195

Due from banks & financial institutions

4,120,650

5,131,835

Due from head office, sister, related banks and financial institutions

314,623

662,209

Financial assets given as collateral and reverse repurchase agreements

67,760

63,272

Derivative financial instruments

7,374

4,313

Financial assets held for trading (2)

343,050

247,892

Financial assets designated at fair value through profit & loss

Net loans & advances to customers (1)

7,258,819

5,761,833

Net loans & advances to related parties

39,909

38,913

Debtors by acceptances

162,613

136,576

Available for sale financial instruments (2)

6,201,354

5,025,586

Financial assets classified as loans and receivables (2) (3)

6,854,037

6,833,875

Held to maturity financial instruments (2)

153,428

305,751

Investments in associates

1,533,855

1,315,712

Investment properties

Property & equipment

239,926

240,353

Intangible fixed assets

3,571

4,652

Non current assets held for sale

18,140

14,395

Deferred taxes assets

574

2,067

Other assets

85,275

50,879

Goodwill

Total Assets

31,223,509

29,822,308

(1) After deduction of provisions amounting to LBP 144,059 million from loans and advances to customers as per IAS 39, of which

LBP 68,631 million representing provisions on collective assessment.

(2) Includes (a) an amount of LBP 3,590 billion representing Local Currency Lebanese Treasury Bills

(b) an amount of LBP 2,541 billion representing Lebanese Eurobonds of which LBP 1,109 billion risk ceded

(3) Includes an amount of LBP 4,084 billion representing Local Currency Certificates of Deposits

Bank Audi sal - Audi Saradar Group

Stand Alone Audited Balance sheet as at December 31, 2010

(LBP million)

Liabilities

31/12/2010

31/12/2009

Due to Central Banks

133,376

133,359

Due to banks & financial institutions

540,315

433,728

Due to head office, sister, related banks and financial institutions

2,527,054

1,722,940

Financial assets taken as collateral & repurchase agreement

Derivative financial instruments

18,598

1,354

Financial liabilities held for trading

Financial liabilities designated at fair value through profit & loss

Customers deposits

24,484,345

24,381,316

Deposits from related parties

281,479

280,786

Debt issued & other borrowed funds

Engagements by acceptances

162,613

136,576

Current tax liabilities

32,366

24,964

Deferred tax liabilities

12,527

18,789

Other liabilities

115,986

42,763

Liabilities related to non-current assets held for sale

Provisions for risks & charges

37,636

55,796

End of service benefits

28,589

24,854

Subordinated loans & similar debts

Total Liabilities

28,374,884

27,257,225

Shareholders' Equity - Group Share

2,848,625

2,565,083

Capital - Common shares

436,990

421,632

Capital - Preferred shares

17,242

15,313

Issue premium - Common shares

671,647

862,611

Issue premium - Preferred shares

359,633

173,125

Merger premium

36,006

Cash contribution to capital

72,586

72,586

Capital reserves

780,916

565,339

Treasury shares

(27,140)

(59,461)

Retained earnings

27,449

17,601

Revaluation reserve of real estate

18,600

18,600

Reserve on revaluation of financial Instruments

91,864

125,172

Reserve for cash flow hedges

Foreign currency translation reserve

(20)

(99)

Other reserves

1,987

2,402

Result of the year

396,871

314,256

Minority Interest

Profit & Loss Accounts

Total Shareholders' Equity

2,848,625

2,565,083

Total Liabilities & Shareholders' Equity

31,223,509

29,822,308

Bank Audi sal - Audi Saradar Group

Stand Alone Audited Off Balance sheet as at December 31, 2010

(LBP million)

OFF Balance Sheet

31/12/2010

31/12/2009

Financing Commitments

- Financing commitments given to banks & financial institutions

363,232

417,414

- Engagement to customers

55,832

306,711

Bank guarantees :

- Guarantees given to banks & financial institutions

260,677

309,672

of which: credit derivatives

- Guarantees received from banks & financial institutions

283,248

266,385

of which: credit derivatives

- Guarantees given to customers

1,575,865

1,484,538

- Guarantees received from customers

7,918,195

5,320,688

Financial Notes Commitments

- Financial notes commitments to be received

of which: financial instruments sold with a buy back option

- Financial notes commitments to be delivered

of which: financial instruments purchased with a buy back option

Foreign Currencies Forwards

- Foreign currencies to receive

745,139

189,619

- Foreign currencies to deliver

760,223

187,941

Engagements on term financial instruments

11,985

34,922

Other Commitments

30,019

29,406

Fiduciary assets

163,286

171,595

Assets under management

4,589,735

4,334,294

Mutual funds

Structured financial products

Engagements unlikely to be executed

Bad debts fully provided for

218,511

187,471

Bank Audi sal - Audi Saradar Group

(LBP million)

Stand Alone Audited Balance sheet as at December 31, 2010

2010

2009

Interest & similar income

1,460,281

1,365,061

Interest & similar expense

(1,006,774)

(971,314)

Net Interest Income

453,507

393,747

Fee & commission income

163,497

144,232

Fee & commission expense

(35,684)

(30,236)

Net Fee & Commission Income

127,813

113,996

Net trading income

37,523

47,651

Net gain or loss on financial assets or liabilities designated at fair value through profit & loss

13,824

Net gain on financial investments

234,765

111,679

Other operating Income

10,889

10,636

Total Operating Income

864,497

691,533

Net provisions for credit losses

(48,128)

(35,316)

Provisions for doubtful loans

(70,343)

(50,360)

Recoveries of provisions for doubtful loans

22,215

15,044

Impairment loss on financial instruments

30

(6,482)

Net Operating income

816,399

649,735

Personnel expenses

(180,063)

(150,453)

Depreciation of property & equipment

(18,341)

(18,347)

Amortisation of intangible assets

(1,540)

(1,972)

Impairment of goodwill

Other operating expenses

(142,874)

(105,576)

Total Operating Expenses

(342,818)

(276,348)

Operating Profit

473,581

373,387

Share of profit of associates under equity method

Net gain (loss) on disposal of assets

(2)

(36)

Profit Before Tax

473,579

373,351

Income tax

(76,708)

(59,095)

Profit After Tax from Operating Activities

396,871

314,256

Result of discontinued operations

Net Profit

396,871

314,256