BLOM Bank published today its unaudited financial results for 2018. In a difficult environment characterized by a slowing economy, higher taxes, 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 $510.42 million, higher by 5.18% from 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 1.47%.
Balance sheet aggregates also performed reasonably well. Assets rose to $36.74 billion, up by 12.91% from 2017; deposits increased to $27.21 billion, higher by 2.17%; loans stood at $7.16 billion, down by 4.98%; and shareholders’ equity increased to $3.26 billion, higher by 8.75%.
BLOM’s results also indicate a solid financial position for the Bank amid the economic and financial instability witnessed in 2018. In this respect, the capital adequacy ratio settled at 18.92%; primary liquidity at 83.34%; loans coverage by specific provisions and real guarantees at 143%; and the cost-to-income ratio at 35.26%, which is the lowest among listed banks.
BLOM Bank’s performance in 2018 is a testimony to the success of its conservative yet flexible business model. It hopes to see better operating conditions in 2019, ushered first and foremost by a speedy formation of a reforming government.