BLOM Bank published today its unaudited financial results for the first quarter of 2018. In a difficult environment characterized by a slowing economy, higher taxes on banks, and continuing regional instability, BLOM Bank managed to maintain steady profitability, thanks to its managerial and operational efficiency. Net profit was $116.83 million, higher by 4.28% from 1Q2017, and implying the highest profitability ratios among listed banks with the rate of return on average common equity reaching 15.21% and the rate of return on average assets 1.42%.
Balance sheets aggregates also performed reasonably well. Assets rose to $33.19 billion, up by 10.13% from end of March 2017; deposits increased to $26.73 billion, higher by 5.87%; loans rose to $7.58 billion, up by 6.53%; and shareholders’ equity (more than 99% in Tier I capital) increased to $3.13 billion, higher by 9.41%.
BLOM’s results also indicate a strong financial position for the Bank. In this respect, the capital adequacy ratio stood at 18.5%, primary liquidity at 82%, gross NPLs at 3.2%, loans coverage by specific and real guarantees at 130%, and the cost-to-income ratio at 37.03% which is the lowest among listed banks. BLOM Bank’s performance in 1Q 2018 is a testimony to the success of its conservative yet flexible business model. It also looks forward to better operating conditions in the near future with the onset of the “Cedre” conference and the completion of the parliamentary elections.