supplement march 2012 anniversary special...supplement march 2012 anniversary special from 1921…...

Supplement ■ March 2012

■ ANNIVERSARY SPECIAL ■

■ From 1921…■ First in so many ways

■ Here and everywhere■ Tomorrow starts now

ANNIVERSARY SPECIAL

■ LEBANON OPPORTUNITIES ■ SUPPLEMENT ■ 1 ■

Lebanon Opportunities

Publisher & editor-in-chiefRamzi El Hafez

Responsible managerIman Chamas

Editorial consultantNicolas Sbeih

Editorial teamHani Bathiche - Senior editorAmany SalloumRebecca Whiting

PrintingPhotogravure Vartan sarl

LEBANON OPPORTUNITIES ®

Published monthlyInfoPro SALHamra streetPiccadilly building – 2nd floorP.O.Box 11-4355 ■Beirut, LebanonPhone: (961-1) 739.777Fax: (961-1) 74.90.90E-mail: [email protected]: www.opportunities.com.lb

Editorial noteThis special supplement has been commissioned byFransabank. It is an informational advertorial.LebanonOpportunities has developed and edited thissupplement based on information obtained fromFransabank and other sources. As with its othereditorial material, Lebanon Opportunities is solelyresponsible for the content of this supplement.Fransabank is under no responsibility for theinformation or opinions expressed in this supplement

TO SUBSCRIBEPhone (961-1) 739.777Fax (961-1) 74.90.90email: [email protected] www.infopro.com.lb/order

Copyright © 2012 InfoPro SAL

The first 90 yearsin the life of a bank

F ransabank is celebrating its first 90 years. Itis rare to find a firm that is so deeply rootedand even rarer to find one that has

remained young in spir it, dynamic, andinnovative. The bank is celebrating through anumber of activit ies including holding aconference on ‘Knowledge’, a documentary onthe history of the bank, a touching advertisingcampaign, and much more. Fransabank hasasked us to publish an ‘informational’supplement to summarize for our readers whatthe bank is all about and where it is heading. Totell the full story, volumes would be needed. Inthe next few pages, we introduce the reader tothe history of the bank, its organization, some ofits achievements, and how tomorrow start now.The objective is to highlight some of the keyelements that constitute the corporate culture ofthe bank. The initiative from the two Kassarbrothers, traders and industrialists, consisted oftaking a steady local activity and turning it into amultinational enterprise, geographically, as wellas in terms of its shareholding. A first in so manyways, Fransabank has been innovative andconservative. It has adopted modern ways whileholding on to traditional values. Readingthrough the supplement, the reader will discoverthe characteristics behind this success story andits longevity. We think it is inspiring and hope itwill be contagious. Happy ninetieth!

ANNIVERSARY SPECIAL

You can’t tell that Fransabank is 90 years old. When you see how dynamic the expansion continues to be and the daring withwhich new entities are created or acquired, you would say that the country’s oldest bank is still youthful. And youth meansambition, enthusiasm, confidence, and a lot of passion. This brief timeline highlights some of the milestones along the way.


Nine passionate decades

TURNOF THE

CENTURY

1921

1933

1943

1968

1975

1978

1980

French mandateover Lebanon

Lebanon declaredindependence. ArabWorlddrawn toward Socialism

Israel bombed the airportof Beirut, 13 civilian

airplanes were destroyed

The civil war erupted.The industrial and banking

sectors destabilized

The Crédit Foncier d’Algérie et de Tunisie (CFAT) started its operations inBeirut. It is the second bank from which Fransabank is formed. CFATplayed an important role, mainly in the agricultural sector. It helped developand finance several industries including the Régie du Tabac

The Indosuez Group facilitated the merger between Bank Sabbag and Banque Française pour le Moyen-Orient tocreate the new entity, Fransabank (FRANçaise + SAbbag Bank). Meanwhile, Adnan and Adel Kassar were workingin the import export field, importing Chinese goods to the Middle East

Banque Indosuez sold its shares in Fransabank to a financial group headed by Adnan and Adel Kassar.The Bank settled on Hamra Street in the same building as the former Bank Sabbag

Bank Sabbag, which had financed the Lebanese airline company, was shaken by this event.Following a wave of nationalization which swept several Arab countries, CFAT had to draw backto France, selling all its branches in Lebanon to Banque Française pour le Moyen Orient (BFMO)

We encountered difficulties in obtaining the Central Bank's agreement on the acquisition

We were at that time in the field of trade. When I knew that Indosuez Group decided tosell Fransabank in 1978, I said to Adel, let's buy

CFAT participated in financing the construction of the famous Saint GeorgeHotel, and also funded The Qadisha Electricity Plant. An Nahar, the newsjournal, founded by Gebran Tueini, was financed by Sabbag Bank

Bank Sabbag, one of the two banks from which Fransabank was formed,was established

In order to overcome the crisis, new alliances were created

We negotiated for two years. They told us “This is the oldest bank, it has the largest number ofbranches. You want to buy it just like that!” We fought a lot!


Crédit Agricole told us “You do not havemuch international development.” I replied, “Then I will come back in oneyear.” To never lose hope is somethingwe learned from the Chinese. We came back a year later

The Germans usually stayfor 3 to 4 years, make

money and then withdraw.They have been with us forover 30 years, becausethey were satisfied.

We have also integratedpartners from the Arabworld, and acquired an

international shareholder’sbase we are proud of. Wewere the pioneers of this

type of initiative

1980-1982

1982

1983

1984

1985

1993

1994

1995

1997

1998

2000

2001

1986-1988

Many Lebanesefled the fighting

Israel invadedLebanon

The fighting cameto an end. The countrystarted to be rebuilt

Fransabank settled on the banks of Lake Léman in Genevaand took shares in Fransad’s Capital, a large Swiss andEuropean banking group

Despite the atmosphere of chaos, Fransabank opened a newbranch in Nabatieh on July 6, just one month after the start ofthe invasion

Acquisition of assets and liabilities of ChaseManhattan Bank - Lebanon branches

The leading German Investment and DevelopmentCompany - DEG, acquired five percent of the bank’sshareholding base

Kuwaiti Public Institution for Social Security acquired two percent of theBank’s share capital

Acquisition of Universal Bank

Establishment of the first specialized banking insurance company inLebanon, Bancassurance

Fransabank established a specialized investment company, theFransa Invest Bank. Opening of Damascus Free Zone Branch in Syria

Fransabank opened a representative office in Hong Kong and a new bank in Zaire

Fransabank launched the Lebanese Leasing Company,the first of its kind in Lebanon

Acquisition of Banque Tohmé

Crédit Agricole participated in six percent of the shareholding ofFransabank. Together, they co-established Fransabank France SA, the firstinternational presence for Fransabank outside Lebanon

The Kassar brothers invited Crédit Agricole to subscribe to their capital

Wewere able to convince Crédit Agricole to enter the capital of a Lebanese bank. It wasin 1984, at a time when some French citizens had been kidnapped, and still they came to

Beirut to negotiate with us and were eventually convinced

The banker acquires a global view of theeconomy and can choose the sector he wants todevelop for the benefit of the country and inorder to support it. You can give a little of

yourself to serve your country

We startedworkingto acquire asmuchknowledge as

possible. We bothgot involvedwithall our energy andour capabilities

Once the agreementwas reached, themost important

thing for us was tokeep things as they

were

ANNIVERSARY SPECIAL


2002

2003

2005

2006

2007

2009

2010

2011

The future

2008

Acquisition of United Bank of Saudia & Lebanon

Acquisition of Banque de la Békaa, which was sold in 2007 toBank of Sharjah as an empty shell, after the transfer of itsassets and liabilities to Fransabank

Establishment of Fransabank OJSC in Belarus,formerly known as The Golden Taler Bank.Issuance of preferred shares.Establishment of a representative office in Libya

Acquisition of Banque Lati (through BLC Bank)

Acquisition of USB Bank Cyprus as a subsidiairy of BLC Bank.

Establishment of a subsidiary in Algeria: Fransabank El DjazaïrSPA. Acquisition of 20 percent of Sudan United Capital Bank

Acquisition of majority shares of BLC Bank.Establishment of Fransabank Syria SA

Official operational launch of Fransabank Syria SA.Fransabank El Djazair SPA increased its Capital

Acquisition of 37 percent of Bank of Beirut and the Arab Countries

Adnan Kassar: “Our achievement is due to daily hard work,monitoring all our concerns, and openness to change and

improvement. One should never believe that he hasreached the pinnacle”

Adnan Kassar: “Our achievement is due to dailyhard work, monitoring all our concerns, and

openness to change and improvement. One shouldnever believe that he has reached the pinnacle”

Adel Kassar: “The bank, as we see it, is growingin an exemplary and continual way. We believethat at this pace, and with God's will, it will be

Number ONE”

PM Rafic Haririassassination

July 2006 War

ANNIVERSARY SPECIAL

Fransabank has employed both prudence and bold tactics and in doing so hasefficiently managed the day-to-day running of its branches, while expandingoutward and achieving success in foreign markets.


Prudent architecture,bold strategy

Board of Directors

Chairman &Deputy Chairman

GroupManagement

Support Functions Lines of Business

Control Functions

BOARD OF DIRECTORS

ADNAN KASSAR Chairman. FormerMinister of Economy. He headed theInternational Chamber of Commerce,and the Beirut Chamber of Commerce.Currently he is the Head of the(Lebanese) Economic Organizations andthe Union of Arab CCIs.

ADEL KASSAR Deputy Chairman.Former Chairman of the Association ofBanks and is now the Honorary ConsulGeneral of Hungary in Lebanon.

HENRI GUILLEMIN Director. Since2008, he has been the ManagingDirector of Crédit Agricole Egypt.

RAFIC CHARAFEDDINE Director. Hedeals in construction projects and realestate investments.

FAHDMAZYAD AL RAJAAN Director.He represents the Public Institution forSocial Security-Kuwait.

MAGDA RIZK Director. She is a propertyowner in Lebanon and a member of theAudit Committee of the Bank.

NEHMÉ TOHMÉ Director. He headsmany contracting companies operatingin the Gulf. He is a former Minister andcurrently a Member of Parliament.

WALID DAOUK Director. He is amember of the Board of Directors ofvarious companies, and President of theAudit Committee of the Bank. He iscurrently the Minister of Information.

MOHAMAD AL FADL Director. He is amember of Jeddah Chamber ofCommerce and Industry, and Chairmanof Gulf One Bank, Bahrain.

WALID NAJA Director. He is thePresident of the Risk Management andCorporate Governance Committees.

ANTOINE JEANCOURT-GALIGNANIDirector. He is the Chairman of theBoard of Eurodisney France.

What kind of risks are expected in the nearfuture, and howwill they be dealt with them?

The banking sector is exposed to a market whichdepends on overall political stability. This element, coupledwith the political events in the Arab world, still carriesconsiderable risk in the short term. Our strategy is tomaintain a strong and adequate capital structure, composedmainly of around 67 percent of common equity Tier-1,coupled with high levels of immediate liquidity, sufficient tocover potential cash-flow needs for a period of 30 days.

How are the 3,000employees keptmotivated andperforming?

We have a long history ofkeeping employees motivatedby providing training and byoffering financial incentives.The creation of regional centersallows the bank to offer trainingopportunities in a way thattakes location-specific needsinto account.

What is thestrategy of thefully-fledged SMEDepartment?

Since Fransabank decided toset up a fully-fledged SMEDepartment in 2008, weachieved a net growth rate of134 percent. Our SME depart-ment is on a persistent mission:To reach as many clients as wecan through workshops held inrural areas; work closely withcooperatives, municipalitiesand syndicates; and provideclients with the best advisoryservice. With the help of inter-national financial institutionsand the Central Bank, Fransa-bank has the funds to lend toSMEs at preferential low rates.

What will thefocus of corporatebanking be inthe near future?

In 2012 and the years to come,Fransabank will focus onfinancing projects and sectorsthat will help develop the RealEconomy and create jobopportunities, such as indus-try, tourism, trade, especiallyexport, as well as projectsrelated to social developmentsuch as infrastructure and util-ities, information technology,green projects, education andhealth services.

Q

Q Q Q


What is FIB’s main focus for the near future?

It is addressing industrial, agricultural,pharmaceutical, eco-tourism, and telecom

projects, among others, for equity and/or debt financingopportunities together with providing advisory servicesduring all transaction phases, from concept development tothe fund raising stage. In addition, FIB plans to play aleading role in projects launched under the Public PrivatePartnership scheme.

QBeing the first leasing company in Lebanon,howwill LLC further develop?

LLC’s main mission is to offer financing on a leasebasis to companies and individuals who do not haveaccess to long-term credit. In 2011, LLC performed wellwith results attaining nearly $1 million – a record since itsinception. LLC seeks to establish further market presenceas the government shows commitment to leasing with amore all encompassing leasing law in Lebanon.

Q

Does BLC have its own direction and actionplan, completely independent of Fransabank?

BLC Bank operates autonomously withinFransabank Group, while making sure to be in keeping withFransabank’s approach of synergy among all Groupentities. Three indicators highlight the success of thisstrategy: Since the beginning of 2008, total depositsincreased from $1.5 to $3.6 billion; total assets havealmost tripled from $1.7 to $4.4 billion; total loansincreased from less than $0.2 to $1.5 billion.

Q

Banks

FRANSA INVEST BANK SAL (Fully-owned)A fully owned investment and private banking subsidiary ofFransabank Group created in April 2001. It aims to provide a fullrange of financial services to institutional and individual clients.

LEBANESE LEASING COMPANY (87.5 percent)Fransabank established the LLC in 1995 in partnership withCrédit Agricole- France, the IFC, and the German Investmentand Development Company. It offers leasing services tofinance the purchasing of equipment.

BLC BANK SAL (75 percent)Fransabank currently holds 74.83 percent of the shares of BLC.Established in 1950, BLC is one of the oldest banks in Lebanon.In 2011, BLC Bank acquired 95.61 percent of the shares of USBBank PLC Cyprus.

BBAC (37 percent)

SOGEFONE SAL (99.88 percent)

FRANSABANK INSURANCESERVICES CO. SAL (99.7 percent)

SWITCH & ELECTRONIC SERVICESSAL (99.6 percent)

EXPRESS SAL (96.7 percent)

Have targets been met so far?

Since its establishment in 1999, Bancassurance SALwitnessed a continuous expansion in its distributionnetwork, and a constant development of its range of products.In fact, Bancassurance has managed to occupy third place inthe Lebanese life insurance market. The collected inpremiums 2010 reached $37 million.

Q

BANCASSURANCE SAL (40 percent)In 1999, Fransabank and Predica – the insurance arm of CréditAgricole (France)- created the first dedicated bank-insurancecompany in Lebanon. The company provides savings and lifeinsurance products through a network of 100 branches.

FRANSABANKLOCAL SUBSIDIARIES

Companies

ANNIVERSARY SPECIAL


What is the expansion strategy for the near future?

In 2011, we consolidated our presence in several regional and internationalmarkets, and shall continue this consolidation in 2012 with prudence and

good management. The prospects provided by the African continent with itsproximity, the business opportunities it offers, as well as a well-establishedLebanese community, encourage us to expand our network in this part of the world.

Q

What are the future developments of Fransabank’saffiliate in France?

Fransabank France medium-term plan has set four priorities:offering Lebanese businessmen in West Africa the expertise of itsteams in Paris, utilizing Fransabank’s Algerian subsidiary to positionitself with the French suppliers of Algeria, providing its localcustomers with financing arrangements – particularly the real estatesector, and expanding its range of financial products.

Q

What are the future developments of Fransabankin Algeria?

This subsidiary aims to expand its branch network in thecoming three years to a total of nine branches, adding six new onesin the main cities of Algeria. Fransabank El Djazair’s will also offer itsclients, which are mainly SMEs, all the products and services of acommercial bank.

Q

What is the strategy of Fransabank in Syria today?

Despite the political instability in Syria, Fransabank openedtwo branches in 2011. Fransabank Syria’s initial development

plan also included expansion into more provinces. With the prevailingpolitical situation, Fransabank Syria’s strategy is now to just maintainactivities at the current level and wait for better days to come.

Q

What is the target market of Fransabank in Belarus?

Fransabank OJSC has developed its products and services tomeet the needs of corporations, SMEs, and individuals and

has expanded its branch network to cover different Belarusianregions. Fransabank’s dynamic entry to this market has alreadyuncovered many of good business opportunities.

Q

What are the main action plans of Fransabank in Sudan?

UCB provides financing for major projects, especially intrading and in the food industry, as well as working capital

requirements to prime corporate and public entities under variousSharia-compliant modes of financing. Fransabank alsoparticipated in transferring its knowledge and experience to thehuman capital at UCB.

Q

FRANSABANK (FRANCE) SAIn 1984, Fransabank and Crédit Agricole co-established FransabankFrance SA which formed the first international presence of Fransabank.

FRANSABANK EL DJAZAIR SPAEstablished in October 2006, it is the onlyLebanese banking subsidiary in Algeria. Itcurrently operates through two branches, inAlgiers and Oran, and will soon open a branchin Sidi Mabrouk.

FRANSABANK SYRIA SAFransabank Syria was launched in January2009 and now it operates through a networkof nine branches covering six major Syriandistricts.

FRANSABANK OJSC (BELARUS)Fransabank OJSC is the only Arab bankoperating in Belarus. During the last three years,Fransabank OJSC has developed a network ofeight branches and 18 exchange offices.

UNITED CAPITAL BANK (SUDAN)Fransabank is present in the Sudanese marketthrough a 20 percent participation in thecapital of United Capital Bank (UCB) which is acorporate bank offering Sharia-compliantmodes of financing.

SPREADINGOUT OVERSEAS

ANNIVERSARY SPECIAL

Fransabank provides banking services which cater for business and for everyday life. To portray the bank’s array of services,imagine a life spanning 90 years, where our subject relies on Fransabank for financial services and support.


Tomorrow starts now

F adi Sabbagh is quite a guy. Proving himself to be afast learner from an early age, he quickly developsambitions for his future. His much loved grandfather,

Fadi Sabbagh senior, had always told him, “Tomorrowstarts now”, so, embracing this motto, young Fadi followscareful plans and choices in order to provide for himselfand his family throughout his life.

Still in school and growing fast, Fadi starts hisrelationship with Fransabank. For his birthday hisparents gave him a Youth Card, a prepaid card,

which his monthly allowance of $150 is automaticallytransferred to.

Fadi just has to pass his baccalaureate exams. Tohelp him study with his friends, his parents decideit’s time he has his own laptop. So, they get him a

PC Loan and let him pay for it with monthly installments ofas little as $20. They also supply him with a reloadable$100 Internet Card.

Fadi passed his exams with flying colors, and isnow preparing to study Engineering. The coursewas his first choice, as is the reputable university he

decided on – a rather expensive one. So he decides to geta University Loan. Fransabank offered him a good deal: Alow interest rate, a grace period, and up to 10 yearsrepayment period one year after graduation.

Life is beautiful, but Fadi says that he needs a carto get to his courses on time; his parents think it’sso he can hang out with friends on week-ends. Still,

with a parental guarantee, he got a pretty good deal on aCar Loan from Fransbank. Among the available choices,he opted for a new $12,000 car, and he got a $10,000loan for 6 years. He has to pay $228 per month, includingall-risk insurance and a bunch of other benefits.

Fadi graduates with honors, he finds a good joband, while repaying his loans, he manages toput some money aside. So, as an incentive for

him to begin saving a little bit of his income, he opens aTime Deposit Account that gives high interest rate onblocked deposits.

Is the ‘retail@Fransabank?’ service one of the future trendsin retail banking, according to Fransabank’s agenda?Retail@Fransabank Section is part of our proximity to our clientsstrategy. Located on the ground floor of Fransabank

headquarters in Hamra. Its mission is to promote Fransabank’sproducts and services while answering all our clients’ requests. Itcaters for individuals and professionals.Retail@fransabank is one of the most dynamic units within the Bank. Itincludes an E-Lounge area with Call Center-enabled phones, iBankonline screens, and big screens. Customers can visit this section tocheck their accounts online, make transfers, and all other E-services.

Q


Having gained a lot of experience, Fadi now feelsready to start his own software company. Fransabankoffers him a Daam Loan to finance the project.

Subsidized by the Central Bank, the loan enables him to findbusiness premises and buy all the equipment he needs.

After some start-up difficulties, business is nowgoing well and the next logical step is to expand.Fransabank’s Mazen suggests he opts for a

Kafalat Loan, which is tailored for financing businessexpansion projects.

Fadi falls in love with his beautiful neighbor, Nayla,and the couple decides to get married in spring. Inpreparation for their wedding and their life together,

he opens an Afrah Account. This allows them to receive theirwedding gifts as cash deposits, and they obtain a preferentialinterest rate, two free cards, among other benefits.

The newlyweds enjoyed a year of renting a chicflat in the middle of the city centre, but whenNayla falls pregnant, they decide it’s time to buy

a home in a quieter neighborhood. A FransabankHousing Loan gives them 80% of the apartment’s valuewith a flexible repayment period of up to 30 years. Theyalso take out a Home Insurance policy, at a highlycompetitive rate.

It’s a boy! Nabil is a healthy, strapping baby andhis parents want to give him the best of everything.Fadi decides to take out a LL30 million Personal

Loan to help with purchasing everything they need fortheir son. Nayla also opts for a Revolving Card, whichgives her credit facilities and payment flexibility. She isentitled to free SMS and e-bank services, and will receivefree monthly statements.

During her pregnancyand Nabil’s first year,Nayla had taken up

making jewelry, and proved tobe pretty good at it. Her friendsencourage her to start up ashop, so she looks into theNajah program at Fransabank,which is specially tailored forbusiness women. Within thisoffer, she chooses aMicro-creditLoan, which is betweenLL750,000 and 10 million withan interest rate for 3% and freelife insurance.

What are your most recent technological tools for clientservicing?Fransabank has launched a WiFi connection service in severalbranches, enabling clients to have internet access on their mobiles

or laptops. Large Fransabank branches have also been equipped withiPad sections and E-lounge areas, enabling clients to get direct access totheir accounts via the Internet while waiting in the branch.Fransabank signed in mid 2011 a mutual agreement with Viamobile, apart of Creova (France) for the implementation of an innovative MobilePayment service at Fransabank, which will be launched this year.Through this new Mobile service, customers can view their accountbalances and transactions history, request a checkbook, transferfunds, pay retailers, recharge mobile phone credit, recharge Internetaccounts, etc. An award-winner in Lebanon, Fransabank’s Call Centeris also a revolutionary automated banking service where personalbanking advisors can support clients in managing their finances overthe phone, through email support as well as online chat. In 2010Fransabank acquired and implemented an updated version of the CallCenter, in cooperation with “Microsoft” and “Cisco”.

Q

ANNIVERSARY SPECIAL


Ten years on from starting up his company, thebusiness premises are in need of a re-vamp. Tofinance the project, Fadi takes a Commercial In-

Site Loan, which will finance 100% of the refurbishmentand equipment costs. Starting from LL30 million, the loanhas grace period between six months and a year, and arepayment period of up to seven years.

Fadi and Nayla’s second son, Rami, is born – ajoyful addition to the family. The couple decidesit’s time to start saving for their boys’ futures. They

opt for the Fransajeunesse program, an education savingsplan coupled with life insurance, which means that ifsomething terrible were to happen, such as Fadi passingaway, the payments would continue.

A sad year for Fadi, as his father fell ill and passedaway. As the only son, he inherits a plot of land inBaalchmay. In keeping with his father’s wishes, he

decides to plant the land. He finds out about theAgricultural Loan at Fransabank in collaboration with theMinistry of Agriculture, which offers between LL3 millionand 25 million, 5% interest rate, plus a lot of benefits.

Fadi decides to install solarheaters in his home and hisbusiness premises, as well as

investing in all the latest energysaving equipment for his office. Hetakes an Energy Loan fromFransabank, with a repayment period ofup to 15 years and an interest ratestarting at zero, to make the project aseasy as possible.

Ever since they had first met, Fadiand Nayla had dreamt of opening a Latino-stylerestaurant. Finally, they decide to do it, and start

with a small but quaint eatery. After two years, their placeis one of the most popular restaurants in Beirut and theydecide to expand. Fadi accepts a Commercial PropertyLoan to cover the costs of renovating the building to makea larger restaurant. As he is now employing more people,he decides to take out a Fransavie plan, a life insuranceservice that helps him to protect his staff.

What are the objectives of Fransabank’s micro-creditprogram?After launching its new Ameen program in 2007, which involvesgranting micro-credit loans to low income individuals,

Fransabank followed in 2008 an expansion strategy that led tofull regional coverage for this product. Fransabank alsolaunched the "Maan Program”, intended to providemicro-credits to Jbeil towns and villages. During 2010,Fransabank became the first bank to sign agreementswith several ministries, such as the Agricultural Loanprotocol, insuring funding agribusiness projects byoffering minimal interest rate loans.

Q

FRANSABANK SUPPLEMENT


Though he still feels young and vibrant, Fadiknows that he should start thinking about ensuringa comfortable retirement for when he gets older.

He opts for the Fransavenir, a savings and investment planwith life insurance, where he can start by putting as little as$25 a month aside.

When Fadi decidesthat the restaurantshould also offer a

delivery service, he has tobuy two vans. He takes outa Commercial VehicleLoan, which offers him upto $50,000 when hemakes a down payment of20% of the price, and hehas five years in which topay it back.

Fadi’s restaurant has been making a very goodname for itself, and he decides it would be aprofitable idea to franchise his company in the Gulf.

To set up the branches he has to relocate to Riyadh forthree years. Fransabank’s SpeedCash service gives Fadi theability to transfer money to his family and business partnersback in Lebanon. He takes also a Visa Infinite that has aspending limit of $20,000 and round-the-clock, round-the-world service, including Concierge Service.

As his software company becomes moresuccessful, it seems more important than ever tohave the business premises fully equipped with the

very latest IT equipment. Fortunately for Fadi, theFransabank group has established the Lebanese LeasingCompany. The scheme means that the Leasing Companywill buy the equipment of his choice, then he can use it fora predetermined period. At the end of the lease period, hehas the choice to then buy the equipment.

Fadi’s software company is now one of the biggestplayers in the local market. He decided to takeover, through acquisitions, two smaller companies

that have been slightly struggling. The Corporate Financeservices at Fransabank mean he has access to the adviceand expertise he needs to finalize the deals.

Fadi has handed a lot of the responsibilitiesfor his software company and his restaurantsto his two sons. He does not want to stop

working entirely, but would like to have more free time tospend with Nayla and pursuing his new gardening hobby.He decides to invest a sum of his money into the financialmarkets. He talks to Fransa Invest Bank, whose servicesinclude Brokerage Services, and Asset Management. Heis constantly given support and advice, and can relaxcomfortably knowing his money is in safe hands.

History shows that Fransabank has always been very activein corporate banking, is this still the case?Fransabank has been supporting and participating in thedevelopment of the national economy since 1921. To give just

an idea of this commitment, here are some of last year’s deals:

In January 2011, Fransabank signed a cooperation agreement withAUB worth $28.5 million. The agreement consists of providing AUBwith an 11-year line of credit at a very competitive interest rate.

In March 2011, Fransabank launched the new series of “EnergyLoans” covering all expenses related to energy consumptionreductions, renewable energy, high efficiency lighting systems, etc.

In June 2011, Fransabank signed a new agreement with MEA tofinance the purchase of a new Airbus, worth $32 million. This is thefourth MEA aircraft funded by Fransabank, the combined value ofaircraft financed topped $157 million.

Q

ANNIVERSARY SPECIAL


Trendsetting andacknowledgementsNo organization could have enjoyed so much success without having been a pioneer within its field of expertise. Fransabankhas played a leading role in several initiatives, and has received an array of awards in recognition of its achievements.

Since the Kassar brothers took over Fransabank in 1980, business has boomed

Fransabank Group 1980 2011 GrowthNumber of employees 406 3,074 x 7.5 timesBranch network 25 142 x 5.6 timesLoans to customers $205 $4,440 x 22 timesCustomer deposits $322 $11,740 x 36 timesNet Profit $3 $162 x 54 times

$: USD million

Signature: Kassar

Outstanding results in the past five years, despite political and economic challenges

2006 2011 GrowthNet profit $54 $159 x 3 timesTotal assets $5,228 $14,458 x 2.8 timesLoans to customers $856 $4,440 x 5.2 timesCustomer deposits $4,312 $11,740 x 2.7 timesShareholders’ Equity $449 $1,293 x 2.8 times

◆ First name on the Register of Banks◆ First: It has the county’s largest branch network◆ First to establish a leasing company in 1995◆ First dedicated bank-insurance company ‘Bancassurance’◆ First and only Lebanese bank to have entered the Algerian

market by establishing Fransabank El Djazair SPA◆ First and only Lebanese or Arab bank to have an

affiliated bank in Belarus◆ First Internet purchasing card

Firsts◆ First bank to successfully migrate all of its cards to chip-

based payment cards◆ First to launch prepaid cards (2001)◆ First card in Euros in the Middle East◆ The PayPass card launched by Fransabank was the first

of its kind in Lebanon and the MENA region.◆ First bank to sign agreements with the Ministry of

Agriculture, thus ensuring adequate funding foragribusiness projects.

◆ Award of Excellence from MasterCard for launching thefirst Platinum Card

◆ Award-winning Call Center (awarded byTeleperformace), is an automated banking service

◆ The ‘Deal of the Year 2008 – Lebanon’ award, by TheBanker, after acquiring the highly coveted BLC Bank.

◆ The ‘Deal of the Year – Highly Commended 2009’ byThe Banker for issuing Series A Preferred Shares

◆ Two Awards granted by Lebanon Opportunities: TheNational Outreach Award, and the Best New RetailProduct Award for its Energy Loans.

...and some of the Awards

supplement march 2012 anniversary special...supplement march 2012 anniversary special from 1921…...

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