BLOM Bank Financial Results for First Quarter 2015: Steady Growth and Profitability

BLOM Bank announced today its financial results for the first quarter of 2015. The results are quite robust, considering the slowdown in the Lebanese economy and the political troubles facing the region. Net profit increased to $91.17 million, up by 4.17% from the first quarter 2014, and driven by the increase in profits of BLOM Bank’s foreign subsidiaries and units. This also implied very decent profitability ratios for the Bank, with ROAE reaching 14.4% and ROAA 1.3%. What engendered this notable performance in profitability is BLOM bank’s exceptional managerial and operational efficiency since the cost‐to‐income ratio stood at 39.1%, the lowest among listed banks.

Steady and balanced growth also marked BLOM Bank’s balance sheet aggregates. Assets reached $28.09 billion, higher by 5.12% from the first quarter 2014; while customers’ deposits increased to $24.08 billion, up by 4.67%. Stronger growth was obtained in lending by the bank, with loans increasing to $6.91 billion, higher by 6.19%. As to shareholders’ equity, it rose to $2.59 billion, up by 5.52%.

The financial results reveal BLOM Bank’s prudent management and performance under difficult operating conditions, and the success of its regional diversification strategy. In addition, this was accomplished while maintaining BLOM Bank’s strong financial standing, as reflected in a capital adequacy ratio (Basel III) at 17.5%, a primary liquidity ratio of 66%, and a coverage ratio for non‐performing loans (including collective provisions and real guarantees) at 161%.

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