By means of the mixed efforts of everybody and the adoption of a complete strategic transformation plan launched on the Libyan Overseas Financial institution three years in the past in collaboration with main worldwide consultancy companies, together with Deloitte, Ernst & Younger, and Curtis, we’ve began to realize our set objectives.
We realized internet income of $804 million in 2022 and 2023, an unprecedented revenue degree within the historical past of the Libyan Overseas Financial institution. This achievement wouldn’t have been potential with out the concerted efforts of the financial institution’s workers and our strategic companions. The distinctive revenue price might be attributed to a number of components, notably:
- The common circulation of oil revenues as a result of efforts of the Nationwide Oil Company, our strategic accomplice.
- Earnings from a few of the financial institution’s international investments.
- Improved efficiency of the financial institution’s funding portfolio.
Once we took over the financial institution three years in the past, it was burdened with a legacy of collected issues, primarily the historic losses within the financial institution’s funding portfolio, which exceeded $1 billion attributable to investments in non-listed bonds and deviations from the funding coverage, in addition to weak oversight and communication with the financial institution’s international investments, the shortage of preparation of consolidated monetary statements in accordance with IFRS requirements, and the underperformance of the three strains of protection (audit, danger, compliance) and the absence of a governance and transparency method within the financial institution’s efficiency.
Over the previous three years, we’ve centered on imposing a complete strategic transformation by partnering with main worldwide consultancy companies. Collectively, we carried out a daring evaluation of the financial institution’s actuality, analyzed gaps and shortcomings, recognized strategic priorities, and adopted a mission administration method to realize our objectives. The transformation coated two important axes: addressing the earlier legacy and bettering funding efficiency.
The efforts of the Lawyer Basic and members of the prosecution performed a pivotal function within the transformation by overseeing a global forensic audit of the financial institution’s funding portfolio, which revealed the flawed funding practices that led to previous losses. We drew classes from this to enhance our portfolio and recuperate a few of the losses.
We’ve ensured the implementation of a governance method inside the financial institution, with the Board of Administrators working by means of specialised committees, together with Threat, Audit, IT Governance, Compliance, Authorized, and Appointments. We elevated disclosure and transparency charges by making ready consolidated and audited monetary statements in accordance with IFRS requirements, working in accordance with particular and timed plans, and defending our international belongings from seizure and execution. We additionally developed and adopted a set of insurance policies and programs governing the financial institution’s work and rebuilt the three strains of protection.
We proceed to execute the excellent strategic transformation, with our subsequent deal with bettering the efficiency of our international investments, making certain their capital adequacy, and compliance with regulatory necessities of their respective international locations. We intention to boost their returns in a globally aggressive and quickly altering market.
Moreover, we search to proceed creating the efficiency of our funding portfolio by investing in monetary merchandise that yield vital returns with out jeopardizing the security of our investments. We additionally intention to satisfy our financial institution’s function in driving commerce and funding domestically by means of our contributions to nationwide banks and corporations, which we try to help in financing tasks and introducing monetary merchandise wanted within the Libyan market, akin to leasing. We additionally depend on our financial institution to play a nationwide function in encouraging international traders to enter Libya by overcoming funding assure challenges that hinder the focused return of international capital.
As I acknowledged three years in the past, the transformation prepare on the Libyan Overseas Financial institution has began, and at present I affirm that it has begun reaching its focused profitability and return levels, with work persevering with to realize complete transformation regardless of challenges and obstacles.
Mustafa Al-Mana
Member of the Administration Committee and Chairman of the Governance Committee, Libyan Overseas Financial institution
Media Contact
Firm Identify : Libyan Overseas Financial institution
Firm Handle : Dat El Imad Administrative Advanced, Tripoli, Libya
