BLOM Bank published today its unaudited financial results for the first half 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 $243.79 million, higher by 4.39% from 1H2017, and implying the highest profitability ratios among listed banks with the rate of return on average common equity reaching 15.81% and the rate of return on average assets 1.45%.
Balance sheets aggregates also performed reasonably well. Assets rose to $34.6 billion, up by 10.46% from end June 2017; deposits increased to $27.1 billion, higher by 1.58%; loans stood at $7.44 billion, down by 3.36%; and shareholders’ equity (more than 99% in Tier I capital) increased to $3.01 billion, higher by 9.87%.
BLOM’s results also indicate a strong financial position for the Bank. In this respect, the capital adequacy ratio settled at 18.5%, primary liquidity at 88%, net NPLs at 0.4%, loans coverage by specific provisions and real guarantees at 136%, and the cost-to-income ratio at 36.53% which is the lowest among listed banks.
BLOM Bank’s performance in 1H2018 is a testimony to the success of its conservative yet flexible business model. It is also looking forward to better operating conditions in the near future with the onset of the “Cedre” conference pledges and the formation of a new government.