BLOM Bank published today its unaudited financial results for the first nine months of 2018. In a difficult environment characterized by a slowing economy and continuing political paralysis, BLOM Bank managed to maintain steady profitability, thanks to its managerial efficiency and its profitable operations in Lebanon and abroad.
Net profit was $382.95 million, higher by 7.29% from end of September 2017, and implying the highest profitability ratios among listed banks, with the rate of return on average common equity reaching 16.49% and the rate of return on average assets 1.50%.
Balance sheet aggregates also performed reasonably well. Assets rose to $35.7 billion, up by 9.69% from end of December 2017; deposits increased to $27.1 billion, higher by 1.71%; loans stood at $7.31 billion, down by 2.98%; and shareholders’ equity (close to 97% in Tier I capital) increased to $3.15 billion, higher by 4.82%. 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 80.5%, loans coverage by specific provisions and real guarantees at 132%, and the cost-to-income ratio at 35.1% which is the lowest among listed banks. BLOM Bank’s performance in 3Q2018 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 formation of the new government and the onset of the “Cedre” conference.