BLOM Bank Publishes Its Financial Results For Year 2020

BLOM Bank published on 1/3/2021 its un-audited, consolidated financial results for year 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 $2.475 million compared to $115.411 million in 2019. Noting that net profits include the $42.427 million made by BLOM Bank Egypt in 2020, which were recorded in the Profit/Loss statement as income from discontinued operations. In addition, BLOM booked $776.576 million in provisions for expected credit losses against $327.111 million booked in 2019.

In terms of balance sheet items, assets stood at $30.287 billion in 2020, lower by 9.03% from end year 2019; deposits (which exclude deposits of BLOM Bank Egypt) were $21.086 billion, lower by 20.31%; loans (which also exclude deposits of BLOM Bank Egypt) decreased to $3.121 billion, less by 46.32%; and shareholders’ equity increased to $3.192 billion, up by 1.17%.

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.

Interesting to add that in its efforts to comply with the latest regulations issued by the Central Bank of Lebanon, which stipulate that all Lebanese banks must increase their equity by 20% by end February 2021, BLOM Bank “announced that it has signed a definitive agreement on Friday 15 January 2021 with the Arab Banking Corporation BSC  (Bank ABC), whereby BLOM Bank SAL will sell its entire 99.4% stake in BLOM Bank Egypt, its Egyptian subsidiary, to Bank ABC, subject to obtaining the approvals of the Central Bank of Egypt and the Central Bank of Lebanon, among other regulatory approvals in Egypt and Bahrain”. To be noted also that, “the proposed cash consideration to be offered by Bank ABC for 100% of BLOM BANK Egypt under the transaction is EGP 6,700 million (USD 427 million)”.

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