BLOM Bank published today on 9/5/2023 its consolidated but un-audited financial results for Q1 2023. The results obtained were naturally affected by the impact of the financial and economic crisis that has struck Lebanon since October 2019. Interesting to note in this context that the exchange rate vis a vis the USD that was used in the calculations was set at 15,000 LBP instead of the previous 1,507.5 LBP, as stipulated by BDL starting 1/2/2023. Net profits came to $1.148 million, compared to $1.434 million in Q1 2022.
In terms of balance sheet items, assets stood at $18.645 billion, lower by 27.72% from end year 2022; deposits were $16.691 billion, down by 18.32%; loans decreased to $1.032 billion, less by 39.80%; and shareholders’ equity stood at $1.280 billion, down by 59.12%.
The Bank also noted 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 when calculating expected credit losses in accordance with the specified ratios listed in Appendix 6 of BDL circular number 44, and as amended by the intermediate circular number 543 issued by BDL on February 3rd, 2020. It is necessary to point out that the deteriorating economic and monetary situation in the markets, and the continued absence of agreement on an adequate financial rescue plan, makes it very difficult to estimate the negative effect of the current crisis on the Financial Statements according to the International Accounting Standards.
|Loans to Customers||1,714,593||1,032,204|
|Customers’ Deposits *||20,433,240||16,690,754|
|Loans / Deposits ratio||8.39%||6.18%|
|* Includes Debt Issued and Borrowed Funds|