DAMASCUS - The results achieved by private banks in Syria during the first half of 2011 support confidence in the Syrian banking sector, showing that Syria has a suitable atmosphere for expanding banking activities as banks continue to carry out their plans without delays.
Several managers of private banks operating in Syria raise hopes in the banking sector and affirming that it will play a bigger role in the development process in the future regardless of some exceptions that accompanied the events taking place in Syria.
Manager of Al Baraka Syria Bank Mohammad al-Halabi said that the bank achieved considerable results during the first half in 2011 in light of the local banking sector's performance, with the bank's portfolio increasing 98%, assets growing by more than 51%, and accounts increasing by 200%.
He added that eight branches were opened across Syria as per the bank's plan for 2011.
In turn, manager of Bank Al-Sharq Jamal Mansour said that a branch will be opened before the end of 2011 with two more to follow in early 2012, stressing that Syria is a promising country with massive natural and human resources.
For his part, manager of Syria Gulf Bank Mohammad Mustafa Jamjoum said that the bank achieved record net profits of SYP 50 million during the first half of 2011, with overall assets increasing by 8% to reach SYP 17 billion.
Jamjoum also noted that the Syrian banking sector is one of the most important in the region due to its potential for large and rapid growth, adding that the Syrian economy is experiencing a boom and that he is optimistic and expects Syria to achieve more prosperity, especially since figures show that the banking sector is solid and strong.
In a similar statement, manager of Bank of Jordan Jawad al-Halbouni said that the bank's plan involves opening six new branches by the end of 2011, making to total number of branches across Syria 18 in less than two and a half years since the bank opened.
Al-Halbouni said that the bank achieved a 25% growth rate during the first half of 2011 despite of the withdrawals that amounted to SYP 4.5 billion during the beginning of the events, adding that much of these withdrawals were deposited back in the bank. He also voiced confidence in the Syrian and economy.
For his part, manager of Fransabank Nadim Mejaes said that the bank continued to expand during the first half of 2011, opening two new branches and purchasing a building to serve as its new headquarters, affirming that the viewpoint of the group which owns the bank regarding Syria is unchanged as they believe that it still has all the requirements of economic growth.
In turn, executive manager of Bank Bemo BBSS Manaf Tawakul said that during the first half of 2011, the bank achieved similar results to those achieved during the same period of 2010 despite the lack of considerable growth in assets of deposits due to the withdrawals during the first quarter which were spurred primarily by psychological factors.
Tawakul said that the bank will continue to open branches in 2011 as planned, and that the Syrian market has the potential for further growth in the banking sector which forms the cornerstone of economy.
According to statistics from the Central Bank of Syria, deposits in Syrian Pound in increased in all Syrian banks during the first half of May by 3.2% compared to the first half of April, while withdrawals during the same period decreased by 10%.
Earlier, the Central Bank took several steps to support bank cash reserves and encourage clients to keep their savings in banks, which included increasing interest rates on all types of deposits by 2%, with interest rates now ranging between 6 and 10%.
Interest rates for deposits in USD end Euros were also increased to encourage people who have savings in foreign currency to keep it in local banks, and these rates currently range from 2.25 to 3.35%.
The Central Bank also took several steps to help banks cut costs and limit the possibility of sustaining losses due to raising interests.
© SANA (Syria Arab News Agency) 2011
