Investor Presentation HI 2019 1. Introduction
2. Financial Overview
3. Business Overview
4. BLOM’s Shares
5. Appendix BLOM Bank at a glance HI 2019 Overview of BLOM Bank BLOM Bank Shareholders
• BLOM is the most profitable bank in Lebanon with consolidated profits Rest of reaching $512M in 2018 Shareholders 26.30% • BLOM Bank is the 2nd largest bank in the country in terms of assets with a Bank of workforce of 4,948 employees NEWYORK* 34.37% • Established in 1951 and headquartered in Lebanon, the Bank and its Khoury Family subsidiaries have 92 branches across Lebanon and 83 branches overseas. 1.80% • Universal Banking Services Saade Family – Traditional banking products and services 2.55% Jaroudi Family – Broad spectrum of corporate lending and Islamic finance 2.17% – Brokerage and custody services Chaker Family 4.82% • The bank’s shares are listed on the Beirut Stock Exchange (2008) and Banorabe S.A Luxembourg Stock Exchange (2006). Out of the total common shares, 34.37% Azhari Family SPF** 18.63% 7.53% are listed as Global Depository Receipts (GDRs) on the LuxSE and traded on Actionnaires the London Stock Exchange Unis 1.83%
Most Awarded Local Bank by Prominent International Sources Key Finance Highlights ($M) HI 2019 2018 2017 2016 Assets 38,531 36,741 32,544 29,518
Equity 3,269 3,269 3,005 2,932
Deposits 28,141 27,220 26,642 24,811
Loans 6,658 7,165 7,538 7,164
Net Income 238.71 511.62 485.27 462.83
Loans/ deposit (%) 23.66 26.32 28.30 28.88
Cost / Income (%) 35.8563.49% 35.38 34.3661.91 % 35.90
ROAA (%) 1.27 1.48 1.56 1.58
ROAE (%) 14.28 16.5291 17.20 90 17.09 Gross NPL Ratio (%) *** 4.69 4.48 3.13 136 4.19 Employees 4,948 5,078137 5,085 4,673 • Starting 1998, and after the issuance of Global Depository Receipts (GDR) by BLOM Bank Shareholders, the Bank of New York as Depository, became shareholder on the Bank’s register ** The major shareholders of Banorabe S.A. SPF (formerly Banorabe Holding S.A.) are the same as in BLOM Bank (except Bank of New York) 1/ 17 *** Starting year 2018, NPLs include substandard, doubtful and bad debts. BLOM Bank offers an International Banking Platform HI 2019
2/ 17 Key Highlights HI 2019
• The most profitable local bank with consolidated net profits of US$511.62M in 2018 • Solid and Consistent Strong Capitalization (CAR of 20.07% as of December 2018) • Financial Track Record Liquid Balance sheet • Net Loans to Net Deposits ratio at 23.66% as of June 2019
• Strong Management team with extensive experience and good reputation • Experienced Professional Board of Directors with 7 independent members • Management Reputable shareholders with Bank of New York acting as the Depository bank (for the bank’s GRDs) since 1998
• Listed on Luxembourg Stock Exchange and Beirut Stock Exchange Internationally • Internationally rated: Caa1 (Moody’s), B- (Standard & Poor’s) & B (Capital Intelligence) and Locally • Highest Corporate Governance Score in Lebanon by Capital Concept s.a.l. Renowned Bank • Most awarded Local Bank by Prominent International Sources: The Banker, Euromoney, Global Finance, Global Investor.
• Banking sector’s solid reputation being one of the country’s most valuable assets Resilient • Diversified economy, rich in human capital – 94% literacy rate Macro Environment • One of the oldest and most comprehensive legal/institutional frameworks among emerging market countries
• Universal Banking Services: Traditional banking products and services, broad spectrum of corporate lending and Islamic finance, brokerage and custody services • Diversified Operations Geographic presence throughout MENA & Europe: Lebanon, Jordan, Egypt, UAE, KSA, Qatar, Iraq, UK, France, Switzerland, Romania, Cyprus • Approximately 38% of the Bank’s Net Loans and Advances to Customers are granted to customers outside Lebanon as of June 2019
• Founded in 1951: one of the oldest local banks One of the Oldest and • Largest deposit bank in Lebanon in terms of local deposits Largest Local Banks • Top-tier bank in Lebanon with a large and loyal customer base
3/ 17 BLOM Bank Strategy HI 2019
The Bank’s primary objectives are to maintain its lead position among Lebanese banks, while diversifying its business and expanding cautiously
• Diversify the Bank’s income by taking advantage of economic and business opportunities present in regional economies • Increase share of its overseas operations in terms of business volume and profits, currently Overseas Market at 32.29% in terms of loans • Currently present in the form of branches, subsidiaries or representative offices in the following countries: Egypt, Jordan, UAE, KSA, Qatar, Iraq, Switzerland, UK, France, Romania, Cyprus
• Ranks #1 in Lebanon, in terms of Income generated from Lebanon business, reaching US$419 million and US$441 million as of December 2017 and December 2018 respectively Lebanese Market • Prudently increase the number of branches through both organic growth and the acquisition of smaller banks • Acquired the assets and liabilities of HSBC Lebanon in June 2017
• Focus on the bank’s digital outreach • Increase online services by providing a technology-oriented and safe banking environment Digital Expansion • Currently offers a range of e-banking and other services, including internet banking, live video chat, and BLOM e-cash
• Diversify its business activities to become a universal banking model • Expand the operations of BLOM’s investment banking arm by enhancing its private and investment banking and capital Business Activities market activities • Highly liquid with a potential upside to further increase exposure to Corporates and SMEs • Established an asset management company (BAMCO) in Lebanon in 2016
4/ 17 Corporate Governance HI 2019
BLOM Bank applies international Compliance and AML standards and strives to abide by international corporate governance practices.
7 Independent Board 6 Board Committees Audit members * Committee
Compliance Risk Committee Management Committee
Board of Directors Consulting, Digital Strategy and Committee Corporate Governance Committee Nomination and Remuneration Committee
27 Management Committees
BLOM Bank SAL was the first bank in Lebanon to sign the Investors for Governance and Integrity (IGI) Declaration.
* The Board of Directors of BLOM Bank SAL includes 10 members: 7 independent members and 3 executive members 5/ 17 1. Introduction
2. Financial Overview
3. Business Overview
4. BLOM’s Shares
5. Appendix Earnings HI 2019
Earnings Growth ($M) Earnings Breakdown by Country [Net Income $238.7M; (2.08)% YoY; 2010-2018 CAGR 5.6%] ($M) HI 2019 % Total %YoY 2018 2017 2016 2015
511.6 Lebanon 195.57 81.93 (6.63) 440.51 418.82 360.39 298.33 462.8 485.3 Egypt 27.47 11.51 57.69 37.20 29.95 53.23 43.34 404.3 352.4 364.8 Jordan 4.40 1.84 (24.91) 11.40 12.59 15.17 17.79 330.6 331.5 335.9
UAE 5.78 2.42 4.14 11.78 9.69 10.76 7.41 238.7 KSA 0.75 0.31 (28.57) 2.88 2.23 6.34 7.22
Qatar 0.62 0.26 (28.74) 1.57 1.02 1.17 2.42
Iraq 0.54 0.23 1900 0.00 (1.18) 4.03 (9.27)
Europe 3.58 1.50 (0.83) 6.28 12.15 11.74 12.94 2010 2011 2012 2013 2014 2015 2016 2017 2018 HI 2019
Income Statement ($M) Net interest income 373.99 Earnings Breakdown by Business Segments 2018 Net Fees and commission income 64.08 Net gain (loss) on financial assets & liabilities designated at fair value through profit & loss 32.76 Insurance 2.2% Net gain (loss) on financial operations 0.78 Other operating income 4.71 Total operating income 476.32 Banking 40.1% Net impairment losses on financial assets (8.81) Net operating income 467.51 Treasury, Money Personnel charges (109.12) and Capital $511.6M General and other operating expenses (58.60) Markets 56.0% Depreciation of tangible fixed assets (12.39) Amortization of intangible fixed assets (0.70) Total operating expenses (180.81) Net operating profit Asset 286.70 Management and Net profit (loss) from sale or disposal of other assets 0.10 Private Banking Net profit before taxes 286.80 1.7% Income tax (48.09) Net profit 238.71
6/ 17 Assets HI 2019
Asset Growth Breakdown of Assets by Country [$38.5Bn ; 11.4% YoY; 2.0% QoQ; 2010-2018 CAGR 6.4%] ($M) HI 2019 % Total % YoY 2018 2017 2016 2015
Lebanon 31.843 82.64 11.50 30,390 26,496 23,999 22,402
Egypt 2,549 6.62 22.78 2,195 1,951 1,519 2,527 38.53 36.74
32.54 Jordan 1,007 2.61 (2.42) 1,003 1,047 1,082 1,106 29.52 27.98 29.10 25.05 26.15 UAE 972 2.52 2.97 1,027 981 829 729 22.34 23.17 KSA 96 0.25 - 97 93 105 109
Qatar 79 0.21 (21.00) 88 105 94 89
Iraq 100 0.26 49.25 74 86 76 55
Europe 1,885 4.89 8.83 1,867 1,785 1,813 1,811
2010 2011 2012 2013 2014 2015 2016 2017 2018 HI 2019
Breakdown of Assets by Uses Breakdown of Assets by Funding
Other Assets ($M) HI 2019 % Total % YoY 2018 2017 2016 2015 Loans & 2.3% Advances to customers 17.3% Deposits 28,141 73.03 3.86 27,220 21,642 24,811 25,091
Corporate Central Bank 5,864 15.22 90.70 4,738 1,501 346 305 Securities 1.8% Cash & Central Bank 65.9% Interbank 380 0.99 (14.80) 575 384 392 323 Government $38.5Bn Securities 8.3% Others 877 2.28 (10.42) 940 1,012 1,037 659 Interbank 4.4% Equity 3,269 8.48 8.64 3,268 3,005 2,932 2,721
7/ 17 Equity HI 2019
Equity Growth Shareholder’s Equity by Country [$3.27Bn ; 8.6% YoY ; (3.5%) QoQ; 2010-2018 CAGR 7.13%] ($M) HI 2019 % Total % YoY 2018 2017 2016 2015 3.27 3.27 Lebanon 2,276 69.62 8.85 2,316 2,120 2,164 1,821 2.93 3.01 2.72 Egypt 236 7.23 29.67 203 164 116 241 2.52 2.35 2.18 Jordan 135 4.13 1.50 136 133 128 122 1.98 1.89 UAE 139 4.25 0.72 144 129 129 128
KSA 85 2.60 (1.16) 86 84 83 77
Qatar 42 1.28 0.00 41 41 40 39
Iraq 55 1.68 12.24 54 49 29 5
Europe 301 9.21 4.15 289 285 243 241
2010 2011 2012 2013 2014 2015 2016 2017 2018 HI 2019
Shareholders Equity Book Value Calculation Capital Adequacy Ratios (%)
($M) HI 2019 2018 2017 2016 2015
20.07 Shareholders’ Equity 3,269 3,269 3,005 2,932 2,721 19.85 19.12 19.13 18.97 18.14 17.54 17.72 17.73 17.64 17.52 Less: 16.07 Preferred Shares 0 0 0 200 200
Minority Interest 52 53 51 49 71
Tier II 13 9 10 10 10
Dividends on Preferred 0 0 0 14 14 Shares
Shareholders Equity for 3,204 3,207 2,944 2,659 2,427 Book Value Calculation 2015 2016 2017 2018
Bookvalue Per Share 14.96 14.97 13.73 12.43 12.05 Common Tier 1 CAR Tier 1 CAR Total CAR
8/ 17 Deposits HI 2019
Deposit Growth Deposits Breakdown by Country [$28.1Bn ; 3.9 % YoY ; 1.2% QoQ; 2010-2018 CAGR 4.18%]
($M) HI 2019 % Total % YoY 2018 2017 2016 2015
28.14 26.64 27.22 Lebanon 22,832 81.13 1.50 22,318 21,878 20,597 19,868 25.09 24.81 24.01 Egypt 2,230 7.93 24.10 1,926 1,711 1,327 2,160 21.79 22.57 19.61 20.30 Jordan 812 2.89 2.92 802 841 875 921
UAE 719 2.55 3.30 777 744 637 554
Qatar 14 0.05 (12.50) 10 20 7 6
Iraq 54 0.19 28.57 49 32 39 33
Europe 1,480 5.26 17.27 1,338 1,416 1,329 1,295 2010 2011 2012 2013 2014 2015 2016 2017 2018 HI 2019
Deposits by Type of Client** Total Deposits by Currency QI 2019
EGP 5.7% Others 5.9% Corporate 16.0%
GBP 1.1% LBP 21.5% EURO 6.1% Individuals 50.1%
$28.1Bn* $27.8Bn
HNW 33.9%
* Excluding BLOM Euro CD’s of $308M ** Individuals < $1M ; HNW >$1M USD 59.7%
9/ 17 1. Introduction
2. Financial Overview
3. Business Overview
4. BLOM’s Shares
5. Appendix Overview of BLOM Bank’s Business Segments HI 2019
BLOM Bank offers a full array of Universal Banking Services
Commercial Banking Lebanon, Egypt, UAE, Jordan, Iraq, Qatar, Europe
Corporate Banking Lebanon, Egypt, UAE, Jordan, Iraq, Qatar, Europe
Retail Banking Lebanon, Egypt, Jordan
Islamic Banking Lebanon
Investment Banking Lebanon, KSA
Private Banking Lebanon, Switzerland
Brokerage Lebanon, Egypt, Jordan
Asset Management Lebanon, Egypt, KSA
Insurance Lebanon, Egypt
10/ 17 Assets Utilization HI 2019
Sovereign Exposure Corporate Securities [$28.4B] [Bonds 67.8% ; Equities 21.3% ; Funds 10.9%]
($B) HI 2019 2018 2017 2016 2015
Central Bank 25.2 23.0 17.5 13.6 11.5
BDL 23.3 21.2 16.3 12.5 10.3 in LBP 10.2 9.0 6.2 5.6 4.6 International Regional 42.9% in FC 13.1 12.2 10.1 6.9 5.7 57.1% $695 M Other 1.9 1.8 1.2 1.1 1.2
Government Securities 3.2 3.1 3.3 4.3 5.2 Domestic Exposure 2.8 2.7 2.9 2.9 3.6
FC Exposure 0.4 0.4 0.4 1.4 1.7
Commercial Loans * Retail Loans
($M) HI 2019 2018 2017 2016 2015 ($M) HI 2019 Lebanon Egypt Jordan
Corporate Loans 1,567 1,703 1,807 1,690 1,632 Housing 1,832 1,706 31 95
SME Loans 1,342 1,510 1,504 1,411 1,409 Car 488 244 64 180
Real Estate 735 764 793 910 1,018 Personal 351 210 69 72
Others 147 140 200 178 200 Cards 166 141 3 22
Total 3,791 4,117 4,304 4,189 4,259 Total 2,837 2,301 167 369
* Excluding related parties loans & insurance receivables
11/ 17 Loans HI 2019
Net Lending Growth ($M) Breakdown of Lending by Country [$6.66Bn ; (10.46%) YoY; (3.59%) QoQ; Loan to Deposit 23.66%]
($M) HI 2019 % Total % YoY 2018 2017 2016 2015 7,538 7,164 7,165 6,910 7,196 Lebanon 4,508 67.71 (13.66) 4,891 5,432 5,277 5,165 6,658 6,345 6,028 Egypt 744 11.17 2.06 720 645 470 721 5,591 5,178 Jordan 502 7.54 (8.39) 529 523 512 507
UAE 435 6.53 (6.85) 508 434 359 294
Qatar 67 1.01 (20.24) 77 96 92 86
Iraq 9 0.14 28.57 8 8 10 12
Europe 393 5.90 3.42 432 400 444 411
2010 2011 2012 2013 2014 2015 2016 2017 2018 HI 2019
Net Interest Margin Breakdown of Lending by Currency QI 2019 [Net Interest Income $373.99M; (5.3%) YoY; 2010-2018 CAGR 5.9%] Others 8.0% EGP 8.2%
2.4% 2.4% 2.3% 2.3% 2.3% 2.2% LBP 22.6% 2.1% 2.2% 2.1% JOD 6.6% 1.9% GBP 1.1%
EURO 3.0% $6.91Bn
USD 50.5% 2010 2011 2012 2013 2014 2015 2016 2017 2018 HI 2019
12/ 17 Retail Lending HI 2019
Retail Lending Growth ($M) Breakdown of Retail Lending by Country [(9.97%) YoY]
3,201 ($M) HI 2019 % Total % YoY 2018 2017 2016 2015 3,011 2,904 2,904 2,837 2,690 Lebanon 2,301 81.11 (11.36) 2,472 2,670 2,398 2,309 2,414
2,099 Egypt 167 5.88 9.1 5 151 134 113 205 1,840 1,558 Jordan 369 13.01 (8.21) 388 397 393 390
Total 2,837 100 (9.97) 3,011 3,201 2,904 2,904
2010 2011 2012 2013 2014 2015 2016 2017 2018 HI 2019
Retail Loans Distribution by Product Retail Loans Distribution by Currency
Personal Loans Credit Cards 12.37% 5.85%
Car Loans 17.20%
LBP 48.3% FC 51.7% $2.84Bn $2.84Bn
Housing Loans 64.58%
13/ 17 Asset Quality/ Provisioning HI 2019
Net Impairment Losses on Loans [(19.33%) YoY] ; NPLs * Coverage Ratios (%)
5.44% 105.06 4.89% 155.47 4.44% 4.69% 4.40% 4.48% 142.00 140.10 82.10 134.53 130.59 125.25 128.42 134.90 69.80 4.19% 121.00
3.20% 3.13%
2.69% 39.26 41.27 89.94 83.91 76.91 74.70 71.13 68.54 63.66 64.81 16.51 16.8 61.62 12.67 13.41 5.05
2010 2011 2012 2013 2014 2015 2016 2017 2018 HI 2019 2011 2012 2013 2014 2015 2016 2017 2018 HI 2019
Net Impairment Losses on Loans ($M) Gross Non-Performing/Gross Loans Coverage Ratio ** Coverage Ratio (Allowances for ECL - Stage 3)
Asset Quality ; Coverage Ratio ** Balance sheet Provisions ($M)
(%) HI 2019 Coverage 2018 2017 2016 2015
Lebanon 4.70 168.67 4.89 2.94 4.28 4.13 61 Egypt 1.97 178.18 1.83 0.54 0.62 1.44 103 61 89 68 84 83 Jordan 8.07 129.02 5.41 3.98 4.21 3.33 68
UAE 0.003 11.22 0.09 1.69 1.78 10.33 69 283 258 245 233 Qatar 14.14 105.60 6.94 5.62 5.79 6.16 211 204 214 206 127 Iraq - - - - 15.47 0.00
Europe 8.52 106.17 7.57 9.38 7.92 8.27 2011 2012 2013 2014 2015 2016 2017 2018 HI 2019
Allowances for ECL - Stage 3 Allowances for ECL - Stage 1 & 2
* Starting year 2018, NPLs include substandard, doubtful and bad debts 14/ 17 ** Allowances for ECL – Stage 3 and Real Guarantees Business Segments HI 2019
AUMs ($M) Insurance Business - Premium ($M) [(1.86%) YoY] [(20.38%) YoY]
7,935 7,841 7,690 7,156 7,122 6,719 5,976 5,567 5,610 80.42 5,205 79.64 63.74 70 75.11 68.99 68.34 70.75
45.39
45.32 43.66 37.20 39.08 37.93 41.49 42.28 40.99 39.39 12.50 8.56
2010 2011 2012 2013 2014 2015 2016 2017 2018 HI 2019 2010 2011 2012 2013 2014 2015 2016 2017 2018 QI 2019 Life Non-Life
Beirut Stock Exchange Brokerage Share ($M) Asset Management Business ($M) [(45.74%) YoY]
972 762 678 801 661 629 610.65 594.29 515 567.35 408 375 562.93 546.96 180 491.88 450.65
262.16 222.67
17.60 33.90 27.50 15.40 52.99 34.88 37.19 15.99 13.53 14.42
2010 2011 2012 2013 2014 2015 2016 2017 2018 HI 2019 2011 2012 2013 2014 2015 2016 2017 2018 HI 2019 BLOMINVEST Share (%) BSE Total Turnover ($M)
15/ 17 1. Introduction
2. Financial Overview
3. Business Overview
4. BLOM’s Shares
5. Appendix BLOM BANK Shares HI 2019
Common Shares GDR DR Program Preferred Shares
215,000,000 73,896,010 1998 (34.37% of Total Common) BLOM Bank had 18,500,000 2002 Common shares in two categories: BLOM Bank issued 750,000 unlisted -Category A:6,168,000 1998 preferred shares(Class -Category B:12,332,000 BLOM Bank issued DR Ticker: BLBD 2002),Coupon:10%-15% 4,389,601 Global Depositary 2004 Of which 4,389,601(23.72%) were Receipts - CUSIP:093688109 listed as GDR at $ 33 each. worth $144.9m.The issue was a BLOM Bank issued 750,000 unlisted secondary issue(No increase in preferred shares(Class 2001 (July) - DR ISIN: US0936881095 2004),Coupon:8.5% BLOM Bank consolidated the two Capital) at $ 33 each. categories into one. 2006 (February) 2005 - Ratio: 1:1 BLOM Bank issued 1,000,000 unlisted 2006 (February) BLOM Bank increased its capital by $276m through the issuance of preferred shares(Class 2005) BLOM Bank increased its capital - Depositary: Bank of New York ,Coupon:8.5%-9.5% by $276m through the issuance of 3,000,000 new Global depository 3,000,000 new Global Depository Shares at $92 per share. The GDS 2006 (August) Shares at $92 per share. The GDS were listed on the Luxembourg and - Effective Date: Jan 20,1998 BLOM Bank lists all preferred shares were listed on the Luxembourg Beirut Stock Exchanges. on the BSE and Beirut Stock Exchanges. The total number of GDR’s was - Underlying ISIN: lb0099221105 increased to 7,389,601(34.37%) 2008 (June) 2006 (August) BLOM Bank redeemed all preferred - Underlying SEDOL: 5400597 BLOM Bank listed 7,166,667 2010 (October) shares class 2002, totaling 750,000 common(one third of all common BLOM Bank executed a share split shares to reduce the total preferred shares) on the BSE. of 1/10 for a total of 73,896,010 - Country: Lebanon shares to 1,750,000 GDRs. 2008 (June ) 2011 (June) - Industry: Banks BLOM Bank listed all its shares on BLOM Bank redeemed its Preferred the Beirut Stock Exchange (BSE). shares Classes 2004 and 2005.
2010 (October) 2011(July) BLOM Bank executed a share split BLOM Bank issued 20 million non- of 1/10 for a total of 215M shares. cumulative perpetual redeemable preferred shares (Class 2011), 2017 (June) Coupon: 7% BLOM Bank increased its capital by $42.786M through the 2017(June) incorporation of an additional BLOM Bank redeemed its 20 million amount from the reserves account, preferred shares class 2011 resulting in a nominal value of LBP 1,500 per common share.
16/ 17 BLOM BANK Share Performance HI 2019
Earnings Per Common Share ($) * Analyst Coverage 2.37 2.20 2.25 2.22 Institution Recommendation Target Price ($) Date
1.86 EFG-Hermes Buy 14.70 Jun 2019 1.60 1.53 1.58 1.46 1.48 Arqaam Capital Buy 14.40 Jun 2019
HSBC Hold 13.10 Apr 2018
FFA Private Bank Overweight 13.00 Feb 2018
2010 2011 2012 2013 2014 2015 2016 2017 2018 HI 2019 * Annualized Dividends Pay-Out(%) & Dividends per Common Share($) BLOM GDR Trading on Beirut & London Stock Exchanges ($)* IOB BSE Total Daily Average 1.13 1.13 1.00 2011 75,730,415 13,043,123 88,773,538 369,889 0.83 50.14 49.16 47.55 2012 132,425,915 31,296,393 163,722,308 682,176 0.66 44.92 0.50 0.45 0.45 0.45 41.9 2013 35,012,956 13,481,017 48,493,973 202,058
2014 90,556,591 20,714,978 111,271,569 463,631
31.5 32.2 30.99 30.15 2015 78,783.936 20,348,525 99,132,461 550,736 2016 90,786,621 91,096,800 181,883,421 757,848
2017 60,843,963 126,870,950 187,714,913 782,145
2018 87,428,292 31,068,420 118,496,712 493,736
2010 2011 2012 2013 2014 2015 2016 2017 2018 Hi 2019 11,201,322 4,437,481 15,638,803 130,323
Dividend Payout Ratio Dividend Per Share *BLOM BANK Executed a share split of 1/10 for a total of 215 M shares in October 2010
17/ 17 1. Introduction
2. Financial Overview
3. Business Overview
4. BLOM’s Shares
5. Appendix BLOM Bank’s History HI 2019
• 1951 First established • 1974 Established AROPE INSURANCE with a leading French re-insurance company, LASCOR. • 1950–2000 1976 Banorabe Bank was founded in Paris by BLOM BANK and other Swiss & Arab shareholders. • 1994 Established an investment banking subsidiary (Banque d’Affaires du Liban et d’Outre-Mer) • 1996 Acquired Banque Banorabe, which in turn owns 100% BLOM Bank Switzerland (in 1992)
• 2004 Established the private bank, BANK OF SYRIA AND OVERSEAS in Syria. BLOM BANK was the largest shareholder with a 39% share whereas IFC’S share is 10%. The remaining capital is subscribed by Syrian individuals • 2004 Opened branches in Jordan • 2005 BLOM BANK’s share of AROPE INSURANCE increased to 88.49% 2001–2006 • 2005 Acquired 96.78% of MISR ROMANIAN BANK. The Bank was renamed BLOM BANK EGYPT and BLOM BANK currently owns approximately 99% of it • 2006 Issued 3 millions Global Depositary receipts” GDR” for a total amount of US$ 276 million and was listed on the Luxembourg Stock Exchange • 2006 Established an Islamic Bank, BLOM Development Bank
• 2009 Established BLOM Bank Qatar • 2010 Established BLOMINVEST SAUDI ARABIA, in Riyadh. • 2011 Launched its new eCash service • 2013 Established Beirut Traders Shopping card • 2014 Signed the Investors for Governance & Integrity declaration 2007–2017 • 2016 Signed an agreement to acquire the assets and liabilities of HSBC Bank Middle East Limited – Lebanon. • 2016 Wrote-off its Syrian investments and deconsolidated its operations in Syria. • 2016 Established BLOM Asset Management Company S.A.L • 2017 Established BLOM Egypt Investment Company S.A.E • 2017 Acquired assets and liabilities of HSBC Bank Middle East Limited – Lebanon
I Peer Group Analysis HI 2019
Net Income ($M) ROA ; ROE (Common)
250.4 238.7
14.28% 14.30%
5.69% 59.9 59.79% 43.74%
1.27% 35.85% 1.06% 0.47%
Blom Audi Byblos Blom Audi Byblos
Net Profits Cost to Income Ratio ROAA ROAE
Financial Ratios 30.72% Volatility of Return 30.00%
3.33 3.26 84.21 83.50
42.29 33.74 36.12 33.26
0.49 0.49
Blom Audi Blom Audi Byblos Mean Coefficient of Variation Price to Net Book Price to Earnings yield [Average Quarterly Return 2005 – HI 2019 ] [Quarterly Standard Deviation/Mean ]
II Disclaimer
The information contained in this presentation has been prepared by BLOM Bank .It has not been fully verified and is subject to material updating, revision and further amendment.
No presentation ,express or implied, is made as to the fairness, accuracy, completeness or correctness of information contained in this presentation, including the accuracy, likelihood of achievement or reasonableness of any forecasts, prospects, synergies, returns, benefits or statements in relation to future matters contained in the presentation(“Forward-looking statements”).Such forward-looking statements are by their nature subject to significant uncertainties and contingencies and are based on a number or estimates or assumptions that are subject to change(ad in many cases are outside the control of BLOM Bank and its directors) which may cause the actual results or performance of BLOM Bank to be materially different from any future results or performance expressed or implied by such forward looking statements.
To the maximum extent permitted by law, BLOM disclaims any responsibility for the accuracy or completeness of any information contained in this presentation including any forward-looking statements and disclaims any responsibility to update or revise any information or forward-looking statement to reflect any change in BLOM Bank’s financial condition, status or affairs or any change in the events, conditions or circumstances on which a statement is based.
This presentation provides information in summary form only and is not intended to be complete. It is not intended to be relied upon as advice to investors or potential investors and does not take into account the investment objectives, financial situation or needs of any particular investor.
To the maximum extent permitted by law, neither BLOM Bank nor its related bodies corporate, Directors, employees or agents, nor any other person, accepts any liability, including, without limitation, any liability arising from fault or negligence, for any direct, indirect or consequential loss arising from the use of this presentation or its contents or otherwise arising in connection with it. This presentation should be read in conjunction with other publicity available material. Further information including historical results and a description of the activities of BLOM Bank is available on our website, www.blom.com.lb