Bank Audi together with the Lebanese banking system has not been directly affected by the international financial crisis. Supported by strong economic expansion in Lebanon coupled with the Bank's growing regional operations (namely in Egypt, Syria and Jordan), Audi's risk assets and revenue streams continue to diversify. The quality of the Bank's credit portfolio is sound, notwithstanding the increase in the non-performing loan (NPL) ratio, with provision coverage at a comfortable level. Despite an increase in the provision charge in 2009, Audi's net profit rose further on the back of higher non-interest income and good cost control producing steady returns. Returns continued to be modest however in common with peer banks. Although the Bank's capital adequacy remained satisfactory, following the implementation of the Basel II capital accord in 2009, CI considers a higher risk asset ratio prudent given Lebanon's historically challenging operating environment.

Audi's liquidity position was comfortable underpinned by a significant pool of bank placements abroad. Notwithstanding the Bank's lower than peer-group exposure to the Lebanese sovereign, a significant share of liquidity is still invested in domestic government paper and Central Bank CDs. This relative concentration of assets remains a cause for concern owing to the size of Lebanon's debt burden and the authorities' slow progress on economic reform. That said, Lebanon's improved international liquidity position has mitigated the sovereign's near term refinancing risks.

Audi is a universal bank with a focus on corporate, retail, private and investment banking. Through a string of strategic acquisitions in Lebanon coupled with organic growth, the Bank has substantially expanded its balance sheet over the last four years. It is currently the largest bank in the country in terms of total assets, total customer deposits and total capital. The international operation is conducted mainly through its subsidiary banks in Paris and Geneva. These banks complement the activities of Bank Audi by providing international and private banking services to institutions and private individuals. Following the substantial capital increase a few years ago, the Bank has stepped up the pace of regional expansion.