Spotlight
Bank Audi
Information last updated on 11 November 2022
Snapshot
Founding
Family Name:
Audi
Co-Founders’ Names
Hanna Audi (1830), Raymond Audi (1962)
Earliest Documented Business Name:
House of Audi (1830), Banque Audi SAL (1962)
Founding Year:
1830
Founding Location:
Saida, Lebanon (1830). Beirut, Lebanon (1962)
Today
Current Operating Status:
Operating
Family Business Name:
Bank Audi
Headquarters Location:
Beirut, Lebanon
Key Industries:
Banking
Number of Employees:
3,100+
ABOUT THE CO-FOUNDERS
“Founding father” Hanna Audi (1830)
The emergence of banking in modern-day Lebanon dates back to the first half of the 19th century. Under Ottoman rule, foreign investments and international trade were highly encouraged.[1] Beirut and neighboring cities emerged as a regional center for agriculture and manufacturing, especially of silk. With the burgeoning economic activity, farmers, silk producers, traders, and regional and international exporters sought financing. Families of the expanding Lebanese bourgeoisie saw an opportunity to provide loans out of their large savings to this newly established, rapidly growing trade network. Prior to the arrival of foreign banks to Lebanon, local families dominated the banking sector — though they were not registered as official banks in the absence of the necessary legal framework — offering loans at interest rates sometimes as high as 35 percent.[2]
Hanna Nehmeh Audi was born in 1805.[3] At the age of 25, in 1830, he became one of the first such bankers in the coastal city of Saida, Lebanon, establishing a “money exchange house” (equivalent to a modern-day bank and currency exchange service provider).[4] Most of his initial clients were local farmers. To expand his clientele, Audi began to also offer loans without interest to accommodate Muslim traditions,[5] and the business became a key financial intermediary for a growing number of Arab, Ottoman, and European banks. In 1938, a branch of the bank opened in Beirut,[6] and Youssef Audi, the founder’s grandson, soon took command of the business. In 1943, Youssef passed away; he was succeeded by his younger brother, Wadih Audi, who restructured the business and became its sole owner.[7]
Co-founders of the incorporated bank (1962)
Wadih Audi’s son Raymond was born on October 6, 1932,[8] in Saida, Lebanon.[9] Raymond’s mother was a painter,[10] and he had three brothers: Georges, Joe (Jean), and Michel Audi.[11] Upon graduating high school, he wanted to pursue his studies in France to become a textile engineer.[12] However, his father was sick, so Raymond could not start university. Instead, Wadih got him an internship at Banque Misr Liban hoping Raymond would carry forward the family’s legacy in the field of banking.[13]
Raymond worked at the bank for two years. Shortly after his father, Wadih, passed away in 1950,[14] Raymond moved to prosperous Kuwait to seek new job opportunities.[15] He ended up working in banking, commerce, and construction, building an invaluable network of prominent local businessmen who trusted him to facilitate their business operations in Lebanon.[16] Inheriting the family business, Raymond and his brothers renamed it Wadih Audi Sons Company[17] and began diversifying, first into construction and exports.[18] Raymond married Andrée Michel Fattal,[19] and together the couple had three children.[20] Their eldest son, Pierre, was born in 1957,[21] followed by their daughter, Sherine, in 1960,[22] then Paul in 1963.[23]
FOUNDING STORY
In Kuwait, Raymond met Hamad Alhumaidhi, co-founder and first president of the Kuwait Commercial Bank (founded in 1960).[24] Hamad was looking to expand the bank into Lebanon,[25] and in 1962, the two established a partnership, resulting in the official incorporation of the Audi Banque SAL in Beirut, Lebanon — marking the first official registration of the centenarian family enterprise.[26] Raymond, who was appointed bank director,[27] is considered the primary “architect” of Bank Audi, as he conceptualized the partnership and, with the help of his brothers Georges and Jean, reimagined the transition of the family business into an official bank.[28]
GROWTH PHASE
The bank was a major success, and in the 1970s, the family established their first European branches, in Switzerland in 1975, followed by France in 1979.[29] This geographical expansion helped the bank avoid the most destructive consequences of the civil war raging in Lebanon.[30] In 1980, Raymond’s daughter, Sherine, became the managing director and administrator of Bank Audi France[31] — becoming the first (and still only) member of the fifth generation to join the family business.[32]
Members of the Audi family held the vast majority of the bank’s shares until they decided to greatly expand the shareholder base in 1983, in the aftermath of the war.[33] The banking sector in Lebanon had largely collapsed and was undergoing massive restructuring.[34] Having successfully maintained the bank’s operations through the country’s darkest period, Bank Audi grew to become one of Lebanon’s top banks.
In 1998, Raymond Audi became the chairperson of Bank Audi.[35] In 2004, the bank signed a merger agreement with Banque Saradar, becoming one of the largest shareholders of Bank Audi sal-Audi Saradar Group.[36] Expansion within the Middle East followed, notably in Jordan (2004), Syria (2005), Saudi Arabia, Egypt, Sudan (2006) then Qatar (2007).[37] In 2008, Raymond started a short political career, serving as a minister of the displaced,[38] and two years later, Bank Audi regained its independence, splitting from Banque Saradar.[39] In 2017, Samir N. Hanna — a non-family member who had started his career at Bank Audi in 1963[40] — succeeded Raymond Audi as chairman of the board of directors.[41] On July 15, 2022, Raymond Audi passed away at the age of 89 years old.[42]
TODAY
Today, Bank Audi is one of the leading banks in Lebanon and considered by many to be the longest-operating business in the country. It has 63 branches inside Lebanon, 50 branches in MENA and Turkey, and two subsidiaries in Europe.[43] As of March 2022, total assets stood at LL 40,324 billion; shareholders’ equity, LL 3,800 billion; customers’ deposits, LL 29,926 billion; and loans and advances, LL 6,808 billion.[44] As of the previous December 2021, the Audi family was collectively the bank’s fourth largest shareholder.[45]
Notes
Photo Credit: Audi family members. Image credit: Hariri Foundation. Source: Youtube
1] Traboulsi, Fawwaz. “Beirut, Capital of Trade and Culture (1820–1918).” A History of Modern Lebanon, Pluto Press, pp. 52-55, https://www.jstor.org/stable/pdf/j.ctt183p4f5.10.pdf?refreqid=excelsior%3Aba6facdca3b3fbe00eece24345760a05&ab_segments=&origin=&acceptTC=1.
[2] تاريخ المصارف في لبنان جورج عشي و غسان العياش. Internet Archive, http://archive.org/details/20220823_20220823_0919. Accessed 26 Dec. 2022., P. 29
[3] تاريخ المصارف في لبنان جورج عشي و غسان العياش. Internet Archive, http://archive.org/details/20220823_20220823_0919. Accessed 26 Dec. 2022., P. 29
[4] “Lifetime Acheivement Award: Raymond Audi.” Euromoney, 13 July 2006, https://www.euromoney.com/article/b1321zzqmw7c54/lifetime-acheivement-award-raymond-audi. Accessed 11 November 2022.
[5] تاريخ المصارف في لبنان جورج عشي و غسان العياش. Internet Archive, http://archive.org/details/20220823_20220823_0919. Accessed 26 Dec. 2022, P. 29
[6] تاريخ المصارف في لبنان جورج عشي و غسان العياش. Internet Archive, http://archive.org/details/20220823_20220823_0919. Accessed 26 Dec. 2022., P. 29
[7] تاريخ المصارف في لبنان جورج عشي و غسان العياش. Internet Archive, http://archive.org/details/20220823_20220823_0919. Accessed 26 Dec. 2022., P. 105
[8] “BANK AUDI A PREMIER REGIONAL BANK BUILT ON SOLID DOMESTIC FOUNDATIONS NATIONAL BANK OF ABU DHABI IN PURSUIT OF EXCELLENCE NATION.” Arab Bankers Association, https://www.arab-bankers.co.uk/img/db/magazine-pdf/Arab%20Banker%202014-2.pdf. Accessed 11 November 2022. *
[9]“Remon Audi1.mp4.” YouTube, 20 March 2010, https://www.youtube.com/watch?v=Yzo0vAgjUaA. Accessed 11 November 2022.
[10]“One Fine Art | articles – pierre audi opera.” OneFineArt, https://www.onefineart.com/articles/pierre-audi-opera. Accessed 11 November 2022.
[11] “Raymond Wadih Audi Obituary.” Khoolood, 19 July 2022, https://www.khoolood.com/obituaries/63192/Raymond-Wadih-Audi. Accessed 11 November 2022.
[12] “Raymond Audi : l’homme aux chantiers permanents.” Commerce du levant, 1 December 2005 ,https://www.lecommercedulevant.com/article/9529-raymond-audi-lhomme-aux-chantiers-permanents. Accessed 11 November 2022.
[13] ريمون عودة: أسسنا بنك عودة في وقت لم تكن فيه هذه التسمية موجودة. 9 Jan. 2020, https://web.archive.org/web/20200109134349/https:/www.eliktisad.com/news/show/135164/%D8%B1%D9%8A%D9%85%D9%88%D9%86-%D8%B9%D9%88%D8%AF%D8%A9:-%D8%A3%D8%B3%D8%B3%D9%86%D8%A7-%D8%A8%D9%86%D9%83-%D8%B9%D9%88%D8%AF%D8%A9-%D9%88%D9%82%D8%AA-%D8%AA%D9%83%D9%86-%D9%81%D9%8A%D9%87-%D9%87%D8%B0%D9%87-%D8%A7%D9%84%D8%AA%D8%B3%D9%85%D9%8A%D8%A9.
[14] تاريخ المصارف في لبنان جورج عشي و غسان العياش. Internet Archive, http://archive.org/details/20220823_20220823_0919. Accessed 26 Dec. 2022., P. 105
[15] “Remon Audi1.mp4.” YouTube, 20 March 2010, https://www.youtube.com/watch?v=Yzo0vAgjUaA. Accessed 11 November 2022.
[16] ريمون عودة: أسسنا بنك عودة في وقت لم تكن فيه هذه التسمية موجودة. 9 Jan. 2020, https://web.archive.org/web/20200109134349/https:/www.eliktisad.com/news/show/135164/%D8%B1%D9%8A%D9%85%D9%88%D9%86-%D8%B9%D9%88%D8%AF%D8%A9:-%D8%A3%D8%B3%D8%B3%D9%86%D8%A7-%D8%A8%D9%86%D9%83-%D8%B9%D9%88%D8%AF%D8%A9-%D9%88%D9%82%D8%AA-%D8%AA%D9%83%D9%86-%D9%81%D9%8A%D9%87-%D9%87%D8%B0%D9%87-%D8%A7%D9%84%D8%AA%D8%B3%D9%85%D9%8A%D8%A9.
[17] تاريخ المصارف في لبنان جورج عشي و غسان العياش. Internet Archivehttp://archive.org/details/20220823_20220823_0919. Accessed 26 Dec. 2022., P. 105
[18] “Raymond Audi : l’homme aux chantiers permanents.” Commerce du levant, 1 December 2005,https://www.lecommercedulevant.com/article/9529-raymond-audi-lhomme-aux-chantiers-permanents. Accessed 11 November 2022.
[19] “One Fine Art | articles – pierre audi opera.” OneFineArt, https://www.onefineart.com/articles/pierre-audi-opera. Accessed 11 November 2022.
[20] “Avis de décès Andrée AUDI – Paris (75).” Dans Nos Coeurs, 23 December 2020, https://www.dansnoscoeurs.fr/andree-audi/3241022. Accessed 11 November 2022.
[21] da Fonseca, Corinna. “A Legend of the International Culture Scene Makes His Mark on New York (Published 2016).” The New York Times, 13 October 2016, https://www.nytimes.com/2016/10/16/arts/music/pierre-audi-a-legend-of-the-international-culture-scene-arrives-in-new-york-park-avenue-armory-metropolitan-opera.html. Accessed 11 November 2022. *
[22] “BANK AUDI FRANCE à PARIS – Chiffre d’Affaires, Résultat et Bilan 315768176.” SocieteInfo, https://societeinfo.com/app/recherche/societe/315768176. Accessed 11 November 2022.
[23] Gary, Romain. “Paul AUDI – PHILéPOL.” PHILéPOL, https://philosophieparisdescartes.wordpress.com/paul-audi/. Accessed 11 November 2022.
[24] حمد صالح الحميضي.. مؤسس البنك التجاري. https://www.annaharkw.com//Article.aspx?id=749051&date=01062017. Accessed 27 Dec. 2022.
[25]“Lifetime Acheivement Award: Raymond Audi.” Euromoney, 13 July 2006, https://www.euromoney.com/article/b1321zzqmw7c54/lifetime-acheivement-award-raymond-audi. Accessed 27 December 2022.
[26]“Corporate Profile.” Bank Audi Group, https://www.bankaudigroup.com/group/about-the-group/corporate-profile. Accessed 27 December 2022.
[27]DEBBANÉ, Benoît. “Raymond Audi, esthète et architecte de Bank Audi, est décédé.” L’Orient-Le Jour, 15 July 2022, https://www.lorientlejour.com/article/1305794/raymond-audi-esthete-et-architecte-de-bank-audi-est-decede.html. Accessed 27 December 2022.
[28]DEBBANÉ, Benoît. “Raymond Audi, esthète et architecte de Bank Audi, est décédé.” L’Orient-Le Jour, 15 July 2022, https://www.lorientlejour.com/article/1305794/raymond-audi-esthete-et-architecte-de-bank-audi-est-decede.html. Accessed 27 December 2022.
[29]DEBBANÉ, Benoît. “Raymond Audi, esthète et architecte de Bank Audi, est décédé.” L’Orient-Le Jour, 15 July 2022, https://www.lorientlejour.com/article/1305794/raymond-audi-esthete-et-architecte-de-bank-audi-est-decede.html. Accessed 27 December 2022.
[30]“Raymond Audi : l’homme aux chantiers permanents.” Commerce du levant, 1 December 2005, https://www.lecommercedulevant.com/article/9529-raymond-audi-lhomme-aux-chantiers-permanents. Accessed 27 December 2022.
[31]Sherin Audi, 17 January 2022, https://www.linkedin.com/in/sherine-audi-14205039/?originalSubdomain=fr. Accessed 27 December 2022.
[32]“Raymond Audi : l’homme aux chantiers permanents.” Commerce du levant, 1 December 2005, https://www.lecommercedulevant.com/article/9529-raymond-audi-lhomme-aux-chantiers-permanents. Accessed 27 December 2022.
[33]“Corporate Profile.” Bank Audi Group, https://www.bankaudigroup.com/group/about-the-group/corporate-profile. Accessed 27 December 2022.
[34] تاريخ المصارف في لبنان جورج عشي و غسان العياش. Internet Archive, http://archive.org/details/20220823_20220823_0919. Accessed 26 Dec. 2022., P. 187
[35]Raymond Audi steps down from bank he founded, https://www.annahar.com/english/article/568956-raymond-audi-steps-down-from-bank-he-founded. Accessed 27 December 2022.
[36] RAMMAL, B.H. “THE IMPACT OF MERGER AND ACQUISITION ACTIVITIES ON THE EFFICIENCY OF BANKS: THE CASE OF LEBANON.” https://eprints.staffs.ac.uk/6894/2/Final%20Thesis%20-%20Batoul.pdf. PAGE 105. The two banks merged under the name of Audi-Saradar Group. PAGE 89.
[37]DEBBANÉ, Benoît. “Raymond Audi, esthète et architecte de Bank Audi, est décédé.” L’Orient-Le Jour, 15 July 2022, https://www.lorientlejour.com/article/1305794/raymond-audi-esthete-et-architecte-de-bank-audi-est-decede.html. Accessed 27 December 2022.
[38]وزارة المهجرين. https://web.archive.org/web/20220717142729/http:/www.pcm.gov.lb/arabic/subpg.aspx?pageid=2023. Accessed 27 Dec. 2022.
[39] RAMMAL, B.H. “THE IMPACT OF MERGER AND ACQUISITION ACTIVITIES ON THE EFFICIENCY OF BANKS: THE CASE OF LEBANON.” https://eprints.staffs.ac.uk/6894/2/Final%20Thesis%20-%20Batoul.pdf. PAGE 105
[40]“Bank Audi.” MarketsWiki, 24 October 2011, https://www.marketswiki.com/wiki/Bank_Audi. Accessed 27 December 2022.
[41] “Raymond Audi Steps down from Bank He Founded.” Annahar.Com, https://www.annahar.com/english/article/568956-raymond-audi-steps-down-from-bank-he-founded. Accessed 27 Dec. 2022.
[42]DEBBANÉ, Benoît. “Raymond Audi, esthète et architecte de Bank Audi, est décédé.” L’Orient-Le Jour, 15 July 2022, https://www.lorientlejour.com/article/1305794/raymond-audi-esthete-et-architecte-de-bank-audi-est-decede.html. Accessed 27 December 2022.
[43]“Corporate Profile.” Bank Audi Group, https://www.bankaudigroup.com/group/about-the-group/corporate-profile. Accessed 27 December 2022.
[44] “Corporate Profile.” Bank Audi Group, https://www.bankaudigroup.com/group/about-the-group/corporate-profile. Accessed 27 December 2022.
[45]DEBBANÉ, Benoît. “Raymond Audi, esthète et architecte de Bank Audi, est décédé.” L’Orient-Le Jour, 15 July 2022, https://www.lorientlejour.com/article/1305794/raymond-audi-esthete-et-architecte-de-bank-audi-est-decede.html. Accessed 27 December 2022.
To cite this article please use:
“Bank Audi” Family Business Histories Research Project, New York University Abu Dhabi and Tharawat Family Business Forum, 20 Mar. 2023, familybusinesshistories.org/spotlights/bank-audi