BLOM net profits up slightly

Bank achieves highest rate of return
on average equity among local banks

BLOM Bank’s net profits were up slightly to $165 million in the first half of 2012, up from $163 million for the corresponding period of last year, according to the bank’s unaudited results.

BLOM’s rate of return on average equity was the highest among Lebanese banks at 17.6 percent. BLOM also maintained tight control over banking risks and expenses, sustaining a 128 percent coverage ratio of non-performing loans (including collective provisions), a high capital adequacy ratio of 13 percent, and the lowest cost to income ratio among local banks at 37.8 percent.

Net interest income was up to $260 million in the same period from $250 million last year. Fees and commissions income was down to around $64 million from $65 million last year.

The bank’s total assets were at $23.8 billion in the first half of the year up slightly from the same period last year when it stood at $23.2 billion. Customers’ deposits (at amortized cost) also rose slightly to $20.6 billion, from $20.1 billion.

The bank also increased provisions for risks and charges to $81 million from around $73 million last year.

Reported by Hani Bathiche