In the first half of the year (H1 2016), BLOM Bank retained its strong standing in the sector by relying on its successful conservative approach and expansion strategy.
BLOM posted the highest Return on Average Equity (ROAE) and the highest Return on Average Assets (ROAA) among listed Lebanese banks of 16.62% and 1.55%, respectively.
In the first half of the year, BLOM Bank registered a net profit of $226.68M, up by 19.08% year-on-year, despite the difficult operating conditions domestically and regionally. This increase is mainly due to higher profits achieved at the bank’s foreign subsidiaries, which is projected in the 13.46% and 3.32% rise in net interest income and net fees and commission income, respectively.
Also, BLOM Bank registered a strong growth in its balance sheet aggregates. In H1 2016, total assets rose by 1.28% on y-t-d basis to $29.50B. Similarly, customer deposits recorded a 1.11% y-t-d improvement to $25.26B, while shareholders’ equity dropped 0.21% to $2.72B.
Loans observed a 2.19% rise to $7.33B by end of June 2016.
Moreover, BLOM Bank’s strong managerial efficiency allowed it to maintain sound qualitative indicators, BLOM’s cost-to-income ratio of 35.88% was the lowest among listed banks and its 18% capital adequacy ratio largely exceeded the required 12%. The ratios of primary liquidity and coverage of non-performing loans of respective 65% and 151% were also solid.
BLOM Bank’s Financial Highlights in H1 2016
| Jun-16 | Dec-15 | % change | |
| Net Profits($M) | 226.68 | 190.35* | 19.08% |
| Total Assets | 29.50 | 29.10 | 1.28% |
| Customers’ Deposits | 25.26 | 24.96 | 1.11% |
| Shareholders’ Equity | 2.716 | 2.721 | -0.21% |
| Loans and advances to customers | 7.33 | 7.18 | 2.19% |
* Value of June 2015
Source: BLOM Bank