By way 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 corporations, together with Deloitte, Ernst & Younger, and Curtis, we’ve got 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 attainable with out the concerted efforts of the financial institution’s staff and our strategic companions. The distinctive revenue charge will be attributed to a number of components, notably:
- The common move of oil revenues as a result of efforts of the Nationwide Oil Company, our strategic accomplice.
- Earnings from a number 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 accrued issues, primarily the historic losses within the financial institution’s funding portfolio, which exceeded $1 billion because of 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 based on IFRS requirements, and the underperformance of the three traces of protection (audit, threat, compliance) and the absence of a governance and transparency strategy within the financial institution’s efficiency.
Over the previous three years, we’ve got targeted on implementing a complete strategic transformation by partnering with main worldwide consultancy corporations. Collectively, we performed a daring evaluation of the financial institution’s actuality, analyzed gaps and shortcomings, recognized strategic priorities, and adopted a mission administration strategy to realize our objectives. The transformation coated two foremost axes: addressing the earlier legacy and bettering funding efficiency.
The efforts of the Lawyer Common and members of the prosecution performed a pivotal function within the transformation by overseeing a world 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 get well a number of the losses.
We now have ensured the implementation of a governance strategy throughout the financial institution, with the Board of Administrators working by 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 based on IFRS requirements, working based on particular and timed plans, and defending our international belongings from seizure and execution. We additionally developed and adopted a set of insurance policies and methods governing the financial institution’s work and rebuilt the three traces of protection.
We proceed to execute the excellent strategic transformation, with our subsequent concentrate on bettering the efficiency of our international investments, making certain their capital adequacy, and compliance with regulatory necessities of their respective international locations. We goal to reinforce their returns in a globally aggressive and quickly altering market.
Moreover, we search to proceed growing the efficiency of our funding portfolio by investing in monetary merchandise that yield important returns with out jeopardizing the protection of our investments. We additionally goal to satisfy our financial institution’s function in driving commerce and funding domestically by our contributions to nationwide banks and corporations, which we attempt to assist in financing tasks and introducing monetary merchandise wanted within the Libyan market, corresponding 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 practice on the Libyan Overseas Financial institution has began, and as we speak I affirm that it has begun reaching its focused profitability and return phases, 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 Title : Libyan Overseas Financial institution
Firm Handle : Dat El Imad Administrative Advanced, Tripoli, Libya