Investor Presentation QI 2016

Transcription

1 Investor Presentation QI 2016

2 1. Overview 2. Financial Information 3. Business Information 4. Share Information

3 Overview QI 2016 Major Highlights Consistent Annual Income Growth ($M) One of the oldest local banks, founded in 1951 The most profitable bank with net profits of $404.3M in 2015 Offers complete range of universal banking services Highest Credit Ratings: B2 (Moody s), B- (Standard & Poor s) & B (Capital Intelligence) Pioneer in Corporate Governance in Lebanon Signatory of the IGI Declaration Geographic presence throughout MENA & Europe: Lebanon, Syria, Jordan, Egypt, UAE, KSA, Qatar, Iraq, UK, France, Switzerland, Romania, Cyprus Most Awarded Local Bank by Prominent International Sources Global Finance EMEA Finance Banker Middle East GTR MENA Leaders in Trade Key Indicators QI ROAA 1.48 % 1.42% ROAE 15.43% 16.00% EPS ($) $1.96 $1.86 No. of Employees 4,876 4,818 Global Investor/ISF - Euromoney European Emerging Markets Awards MENA FM Overall Liquidity No. of Branches * FC LBP Lebanon 85 Foreign Includes 68 Insurance points of sale 48.09% 78.84% % 79.06% /12

4 1. Overview 2. Financial Information 3. Business Information 4. Share Information

5 Balance Sheet QI 2016 Breakdown of Total Assets [$29.3Bn; 4.31% YoY; CAGR 5.82%] Breakdown of Assets by Country ($M) QI 2016 % Total YoY Others 2.6% Lebanon 22, ,402 21,612 20,288 19,171 Cash & Central Bank 41.5% $29.3Bn Loans 24.8% Egypt 2, ,527 2,093 1,705 1,692 Jordan 1, ,106 1,102 1, UAE (0.41) Syria (22.97) Securities 22.2% KSA Qatar (3) Interbank 8.9% Iraq NA NA Europe 1, (1.28) 1,811 1,820 1,722 1,807 Shareholder s Equity by Country [$2.79Bn; 7.73% YoY] ($M) QI 2016 % Total YoY Lebanon 1, ,821 1,662 1,554 1,399 Egypt UAE Jordan KSA Syria , , ,973 Tier I & Tier II Capital ($M) [Basel III CAR of 18.0%] 10 2, , , , ,777 Qatar Iraq NA NA Europe /12

6 Income & Provisioning QI 2016 Net Income by Country [Net Income $108.23M; 18.71% YoY; CAGR 5.53% ] ($M) QI 2016 % Total YoY Net Interest Margin [Net Interest Income $167M; 15.17% YoY; CAGR 6.45%] Lebanon Egypt Syria % 2.29% 2.24% 2.33% Jordan % KSA (24.68) % 2.15% UAE % Qatar (54.29) 2.42 (4.77) Iraq (0.70) (0.65) (9.37) (9.27) (2.39) NA NA Europe USD Interbank & Deposits (%) % % Net Provisions ; NPLs [(20.55%) YoY] 5.44% % 4.89% % 4.52% 3.44% 3.20% % % 5.0% 4.0% 3.0% 2.0% Average Cost of USD Deposits Average Libor 3M -20 Net Provisions ($M) Gross Non-Performing/Gross Loans 1.0% 3/12

7 Fee Income QI 2016 Fee Income ($M)* [17.60% YoY; Ratio of Fee Income to Operating Income %] Fee Income Breakdown by Type Credit & Corporate Finance 6.3% Trade Finance 10.9% Retail 23.6% Others 2.6% $47.23M Insurance 8.2% *Includes Net Commissions & Fee income, Foreign Exchange Gain & Dividends Private Banking 22.1% Asset Management & Custody 26.3% Efficiency Ratio * Cost-to-Income % 39.11% 37.99% 37.68% % 35.58% 35.04% 36.21% 36.80% 36.69% * Non-Interest Expenses / Total Revenue 4/12

8 Peer Group Analysis QI 2016 Net Income ($M) ROA ; ROE (Common) % 62.34% % 14.34% 7.57% 36.69% 1.48% 1.06% 0.68% Blom Audi Byblos Blom Audi Byblos Net Profits Cost to Income Ratio ROAA ROAE Financial Ratios Volatility of Return 17.83% 15.67% 10.06% Blom Audi Byblos Price to Net Book Price to Earnings yield Blom Audi Byblos Mean Coefficient of Variation [Average Quarterly Return ] [Quarterly Standard Deviation/Mean ] 5/12

9 1. Overview 2. Financial Information 3. Business Information 4. Share Information

10 Deposit Franchise QI 2016 Total Deposits ($B) [4.66% YoY] Total Deposits by Holder * Retail 13.57% $25.21Bn Corporate 17.26% Middle 34.28% HNW 34.89% * Retail < $100k ; Middle $100K -$1M ; HNW >$1M Deposits Breakdown by Country ($M) QI 2016 % Total YoY Lebanon 20, ,868 19,047 18,052 17,208 Egypt 2, ,160 1,776 1,415 1,364 Jordan Total Deposits by Currency (2015) EGP 7.35% Others 5.54% SYP 0.24% GBP 1.38% EURO 7.04% LBP 28.09% UAE Syria (26.22) $25.09Bn Iraq NA NA Qatar (65) Europe 1, (8.70) 1,295 1,343 1,260 1,438 USD 50.36% 6/12

11 Lending Business QI ,178 Growth of Total Net Lending ($M) [5.28% YoY] 5,591 6,028 6,345 6,910 7,196 7, % Loans to Deposits Ratio 26.41% 27.55% 27.66% 28.11% 28.78% 28.68% 28.88% 4,019 Breakdown of Lending by Countries ($M) QI 2016 % Total YoY Lebanon 5, ,165 5,054 4,618 4,328 Egypt Breakdown of Lending by Sector * Project Finance 7.84% Real Estate 5.48% Jordan UAE Retail 40.25% $7.24Bn * SMEs 21.08% Qatar Iraq NA NA Syria 0 0 (100) Corporate 22.58% Securities 1.31% Syndicated Loans 1.46% Europe * Excluding related parties loans 7/12

12 Retail Lending QI ,558 1,840 Growth of Retail Lending ($M) [7.96% YoY] 2,099 2,414 2,690 2,904 2,916 Lebanon, 79.70% Egypt, 6.62% Personal Loans 13.51% Retail Loans Distribution by Product $2.92Bn Credit Cards 4.77% Car Loans 21.50% Syria, 0% Jordan, 13.68% Housing Loans 60.22% QI 2016 Breakdown of Retail Loans by Product ($M) Car Loans % Total YoY (%) Housing Loans % Total YoY(%) Personal Loans % Total YoY(%) Credit Cards % Total YoY(%) Lebanon , (3.41) Egypt (25.0) Syria Jordan (20.0) 8/12

13 Business Segments QI 2016 Custody Business (AUMs $M) [0.24% YoY] Asset Management Business ($M) * 5,976 5,567 5,205 5,610 7,156 6,719 7, Blom Bond Fund, 56.6% Blom Petra Balanced Fund, 0.5% Blom Money Market Fund, 32.6% 4, Blom Saudi Arabia Fund, 0.7% Blom CedarsBalanced Fund, 4.5% LBP MMF, 3.3% Arab Markets Fund, 1.8% Qi QI 2016 * Closure of BLOM PYRAMID Fund in 2016 Brokerage Activity QI 2016 US ($M) 3,756 Insurance Business - Premium ($M) 1, % % 0.79% 2.4% Lebanon Syria Jordan Egypt BLOMINVEST market share Total trading per stock market Life Non-Life 9/12

14 1. Overview 2. Financial Information 3. Business Information 4. Share Information

15 BLOM BANK Share Performance QI 2016 Earnings Per Common Share ($) * Analyst Coverage Institution Recommendation Target Price ($) Date FFA Private Bank Overweight Apr 2016 HSBC Hold Feb 2016 EFG-Hermes Buy Feb 2016 Arqaam Capital Buy Jan 2016 Deutche Bank Buy Aug 2015 EVA Dimensions Overweight NA Oct 2014 * Annualized BLOM Bank GDR vs BLOM Stock Index (BSI) vs BLOM Mena Banking index BLOM GDR Trading on Beirut & London Stock Exchanges ($)* IOB BSE Total Daily Average ,781,087 74,578, ,359,814 1,063, ,730,415 13,043,123 88,773, , ,425,915 31,296, ,722, , ,012,956 13,481,017 48,493, , ,556,591 20,714, ,271, , , ,348,525 99,132, ,736 GDR BSI BMBI Mar-09 May-09 Jul-09 Sep-09 Nov-09 Jan-10 Mar-10 May-10 Jul-10 Sep-10 Nov-10 Jan-11 Mar-11 May-11 Jul-11 Sep-11 Nov-11 Jan-12 Mar-12 May-12 Jul-12 Sep-12 Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13 Jan-14 Mar-14 May-14 Jul-14 Sep-14 Nov-14 Jan-15 Mar-15 May-15 Jul-15 Sep-15 Nov-15 Jan-16 Mar ,457,601 16,541,707 40,999, ,322 *BLOM BANK Executed a share split of 1/10 for a total of 215 M shares in October /12

16 BLOM BANK Shares QI 2016 Common Shares GDR DR Program Preferred Shares 215,000,000 73,896,010 (34.37% of Total Common) 20,000, BLOM Bank had 18,500,000 Common shares in two categories: -Category A:6,168,000 -Category B:12,332,000 Of which 4,389,601(23.72%) were listed as GDR at $ 33 each (July) BLOM Bank consolidated the two categories into one (February) BLOM Bank increased its capital by $276m through the issuance of 3,000,000 new Global Depository Shares at $92 per share. The GDS were listed on the Luxembourg and Beirut Stock Exchanges (August) BLOM Bank listed 7,166,667 common(one third of all common shares) on the BSE BLOM Bank issued 4,389,601 Global Depositary Receipts worth $144.9m.The issue was a secondary issue(no increase in Capital) at $ 33 each (February) BLOM Bank increased its capital by $276m through the issuance of 3,000,000 new Global depository Shares at $92 per share. The GDS were listed on the Luxembourg and Beirut Stock Exchanges. The total number of GDR s was increased to 7,389,601(34.37%) 2010 (October) BLOM Bank executed a share split of 1/10 for a total of 73,896,010 GDRs. DR Ticker: BLBD - CUSIP: DR ISIN: US Ratio: 1:1 - Depositary: Bank of New York - Effective Date: Jan 20, Underlying ISIN: lb Underlying SEDOL: Country: Lebanon - Industry: Banks 2002 BLOM Bank issued 750,000 unlisted preferred shares(class 2002),Coupon:10%-15% 2004 BLOM Bank issued 750,000 unlisted preferred shares(class 2004),Coupon:8.5% 2005 BLOM Bank issued 1,000,000 unlisted preferred shares(class 2005),Coupon:8.5%-9.5% 2006 (August) BLOM Bank lists all preferred shares on the BSE 2008 (June) BLOM Bank redeemed all preferred shares class 2002, totaling 750,000 shares to reduce the total preferred shares to 1,750, (June ) BLOM Bank listed all its shares on the Beirut Stock Exchange (BSE) (October) BLOM Bank executed a share split of 1/10 for a total of 215M shares (June) BLOM Bank redeemed its Preferred shares Classes 2004 and (July) BLOM Bank issued 20 million non-cumulative perpetual redeemable preferred shares (Class 2011), Coupon: 7% 11/12

17 BLOM BANK Shareholders QI 2016 Rest of Shareholders 23.5% Bank of NEWYORK* 34.37% Khoury Family 1.9% Saade Family 2.53% BLOM Bank Shareholders Jaroudi Family 2.71% Chaker Family 10.39% Banorabe S.A SPF** 15.22% Azhari Family 7.53% Actionnaires Unis 1.83% 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) 12/12

18 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,