BLOM Bank published on 11/9/2020 its un-audited, consolidated financial results for H1 2020. The results obtained were largely affected by the impact of the financial and economic crisis that has struck Lebanon since October 2019. Net profits came to $38.82 million compared to $238.78 million in H1 2029. And net profits emanated mostly from BLOM’s units outside Lebanon, especially from the unit operating in Egypt which constituted 59.3% of consolidated profits.
In addition, BLOM booked $280.88 million in provisions for expected credit losses against $8.81 million booked in H1 2019. Net interest income reached $553.46 million, up by 47.92%; whereas net commission income stood at $52.53 million, down by 18.04%. As to total operating expenses, they were $158.71 million, down by 12.25%.
In terms of balance sheet items, assets stood at $31.43 billion, lower by 5.64% from end year 2019; deposits were $23.78 billion, lower by 8.85%; loans decreased to $4.54 billion, less by 21.74%; and shareholders’ equity increased to $3.19 billion, up by 1.26%.
Moreover, BLOM Bank stated that it is required to comply by all BDL circulars as stipulated in the Code of Money and Credit, especially article 208. As a result, the Bank has complied by these circulars for the year 2020 accounts when calculating expected credit losses in accordance to the specified ratios listed in Appendix 6 of BDL circular number 44, and as amended by the intermediate circular number 567 issued by BDL on 26/8/2020.
Lastly, interesting to add that BLOM has received the approval of the Egyptian Monetary Authorities to start the process of selling its Egyptian unit; and has also hired the Egyptian investment bank C I Capital for that purpose.