Investor Presentation QIII 2018
1. Introduction 2. Financial Overview 3. Business Overview 4. BLOM s Shares 5. Appendix
BLOM Bank at a glance QIII 2018 Overview of BLOM Bank BLOM Bank Shareholders BLOM is the 1 st largest bank in Lebanon in terms of Net Income generated in Lebanon BLOM Bank is the 2 nd largest bank in the country in terms of assets with a workforce of 5,000+ employee Established in 1951 and headquartered in Lebanon, the Bank and its subsidiaries have 91 branches across Lebanon and 137 branches overseas. Rest of Shareholders 26.36% Bank of NEWYORK* 34.37% Universal Banking Services Traditional banking products and services Broad spectrum of corporate lending and Islamic finance Brokerage and custody services The bank s shares are listed on the Beirut Stock Exchange (since 2008) and Luxembourg Stock Exchange (since 2006). Out of the total common shares, 34.37% are listed as Global Depository Receipts (GDRs) in the LuxSE and traded in London Stock Exchange Khoury Family 1.91% Saade Family 2.55% Jaroudi Family 2.17% Chaker Family 4.83% Azhari Family 7.53% Actionnaires Unis 1.83% Banorabe S.A SPF** 18.45% Most Awarded Local Bank by Prominent International Sources Key Finance Highlights ($M) QIII 2018 2017 2016 Assets 35,699 32,544 29,518 Equity 3,150 3,005 2,932 Deposits 27,098 26,642 24,811 Loans 7,313 7,538 7,164 Net Income 382.95 485.27 462.8 Loans/ deposit (%) 26.99 28.30 28.78 Cost / Income (%) 35.03 63.49% 34.36 61.91% 35.90 ROAA (%) 1.50 1.56 1.58 ROAE (%) 16.49 91 17.20 90 17.09 Gross NPL Ratio (%) 3.27 3.13 136 4.19 Employees 5,126 137 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 almost the same family as in BLOM Bank (except Bank of New York) 1/ 17
BLOM Bank offers an International Banking Platform QIII 2018 2/ 17
Key Highlights QIII 2018 Solid and Consistent Financial Track Record The most profitable bank in terms of Lebanon business with consolidated net profits of US$485.27M in 2017 Strong Capitalization (CAR of 17.98% and Tier I of 17.58% as of June 2018) Liquid Balance sheet Net Loans to Net Deposits ratio at 26.99% as of September 2018 Experienced Management Strong Management team with extensive experience and good reputation Professional Board of Directors with 7 independent members Reputable shareholders with Bank of New York acting as the Depository bank (for the bank s GRDs) since 1998 Internationally and Locally Renowned Bank Listed on Luxembourg Stock Exchange and Beirut Stock Exchange Internationally rated: B3 (Moody s), B-(Standard & Poor s) & B (Capital Intelligence) Highest Corporate Governance Score in Lebanon by Capital Concept s.a.l. Most awarded Local Bank by Prominent International Sources: The Banker, Euromoney, Global Finance, Global Investor, etc. Resilient Macro Environment Banking sector s solid reputation being one of the country s most valuable assets Diversified economy, rich in human capital 94% literacy rate One of the oldest and most comprehensive legal/institutional frameworks among emerging market countries Diversified Operations One of the Oldest and Largest Local Banks Universal Banking Services: Traditional banking products and services, broad spectrum of corporate lending and Islamic finance, brokerage and custody services 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 outsidelebanon as of September 2018 Founded in 1951: one of the oldest local banks 3rd largest branch network Top-tier bank in Lebanon with a large and loyal customer base 3/ 17
BLOM Bank Strategy QIII 2018 The Bank s primary objectives are to maintain its lead position among Lebanese banks, while diversifying its business and expanding cautiously Overseas Market 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 at 13.49% in terms of profits 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 Lebanese Market Ranks #1 in Lebanon, in terms of Income generated from Lebanon business, reaching US$419 million and US$331 million as of December 2017 and September 2018 respectively Prudently increase the number of branches through both organic growth and the acquisition of smaller banks Acquired the assets and liabilities of HSBC Lebanon in June 2017 Focus on the bank s digital outreach Digital Expansion Increase online services by providing a technology-oriented and safe banking environment Currently offers a range of e-banking and other services, including internet banking, live video chat, and BLOM e-cash Diversify its business activities to become a universal banking model Business Activities Expand the operations of BLOM s investment banking arm by enhancing its private and investment banking and capital market activities Highly liquid with a potential upside to further increase exposure to Corporates and SMEs Established an asset management company in 2017 4/ 17
Corporate Governance QIII 2018 BLOM Bank applies international Compliance and AML standards and strives to abide by international corporate governance practices. 6 Board Committees Audit Committee 8 Independent Board members* Compliance Committee Risk Management Committee Fintech Committee Board of Directors Nomination and Remuneration Committee Consulting, Strategy and Corporate Governance Committee 28 Management Committees BLOM Bank SAL was the first bank in Lebanon to sign the Investors for Governance and Integrity (IGI) Declaration. * The Board of Directors of BLOM Bank SAL includes 11 members: 8 independent members and 3 executive members 5/ 17
1. Introduction 2. Financial Overview 3. Business Overview 4. BLOM s Shares 5. Appendix
Earnings QIII 2018 Earnings Growth ($M) [Net Income $383.0M; 7.29% YoY; 2010-2017 CAGR 5.6%] Earnings Breakdown by Country ($M) QIII 2018 % Total YoY 2017 2016 2015 2014 330.6 331.5 335.9 352.4 364.8 404.3 462.8 485.3 383.0 Lebanon 331.28 86.52 10.52 418.82 360.39 298.33 286.50 Egypt 25.62 6.69 (10.92) 29.95 53.23 43.34 33.14 Jordan 9.08 2.37 (6.97) 12.59 15.17 17.79 16.46 UAE 8.69 2.27 24.32 9.69 10.76 7.41 6.68 KSA 1.42 0.37 13.60 2.23 6.34 7.22 6.81 Qatar 1.77 0.46 65.42 1.02 1.17 2.42 (4.77) Iraq 0.04 0.01 105.97 (1.18) 4.03 (9.27) (2.39) 2010 2011 2012 2013 2014 2015 2016 2017 QIII 2018 Income Statement ($M) Net interest income 621.00 Net Fees and commission income 105.07 Net gain (loss) on financial assets & liabilities designated at fair value through profit & loss 24.21 Net gain (loss) on financial operations (0.72) Other operating income 18.87 Total operating income 768.43 Credit loss expense (12.19) Net operating income 756.24 Personnel charges (173.66) General and other operating expenses (90.13) Depreciation of tangible fixed assets (18.66) Amortization of intangible fixed assets (0.72) Total operating expenses (283.17) Net operating profit 473.07 Net profit (loss) from sale or disposal of other assets (1.13) Net profit before taxes 471.94 Income tax (88.99) Net profit 382.95 Europe 5.05 1.32 (49.55) 12.15 11.74 12.94 9.32 Treasury, Money and Capital Markets 55.4% Earnings Breakdown by Business Segments HI 2018 Insurance 0.9% $243.8M Banking 40.6% Asset Management and Private Banking 3.0% 6/ 17
Assets QIII 2018 Asset Growth [$35.7Bn; 12.3% YoY; 3.2% QoQ; 2010-2017 CAGR 5.5%] Breakdown of Assets by Country ($M) QIII 2018 % Total YoY 2017 2016 2015 2014 35.70 Lebanon 29,532 82.73 13.58 26,496 23,999 22,402 21,612 22.34 23.17 25.05 26.15 27.98 29.10 29.52 32.54 Egypt 2,149 6.02 12.22 1,951 1,519 2,527 2,093 Jordan 1,022 2.86 (1.26) 1,047 1,082 1,106 1,102 UAE 929 2.60 0.65 981 829 729 727 KSA 97 0.27 5.43 93 105 109 100 Qatar 92 0.26 (5.15) 105 94 89 120 Iraq 76 0.21 11.76 86 76 55 27 Europe 1,802 5.05 7.90 1,785 1,813 1,811 1,820 2010 2011 2012 2013 2014 2015 2016 2017 QIII 2018 Breakdown of Assets by Uses Breakdown of Assets by Funding Loans & Advances to customers 20.5% Other Assets 2.4% ($M) QIII 2018 % Total YoY 2017 2016 2015 2014 Deposits 27,098 75.91 25.21 21,642 24,811 25,091 24,006 Central Bank 4,025 11.27 168.15 1,501 346 305 255 Corporate Securities 2.2% Government Securities 8.7% $35.7Bn Cash & Central Bank 60.9% Interbank 389 1.09 1.30 384 392 323 425 Others 1,037 2.91 2.47 1,012 1,037 659 766 Equity 3,150 8.82 4.83 3,005 2,932 2,721 2.523 Interbank 5.3% 7/ 17
Equity QIII 2018 Equity Growth [$3.15Bn; 9.6% YoY ; 4.7% QoQ; 2010-2017 CAGR 6.87%]] Shareholder s Equity by Country ($M) QIII 2018 % Total YoY 2017 2016 2015 2014 1.89 1.98 2.18 2.35 2.52 2.72 2.93 3.00 3.15 Lebanon 2,213 70.25 9.39 2,120 2,164 1,821 1,662 Egypt 189 6.00 14.55 164 116 241 217 Jordan 136 4.32 3.82 133 128 122 113 UAE 142 4.51 12.70 129 129 128 124 KSA 86 2.73 2.38 84 83 77 71 Qatar 42 1.33 2.44 41 40 39 36 Iraq 50 1.59 108.33 49 29 5 12 Europe 292 9.27 4.29 285 243 241 240 2010 2011 2012 2013 2014 2015 2016 2017 QIII 2018 Shareholders Equity Book Value Calculation Capital Adequacy Ratios (%) ($M) QIII 2018 2017 2016 2015 2014 Shareholders Equity 3,150 3,005 2,932 2,721 2,523 Less: 16.07 17.54 17.64 17.52 18.97 19.85 18.14 17.98 17.72 17.73 17.57 17.58 Preferred Shares 0 0 200 200 200 Minority Interest 52 51 49 71 66 Tier II 10 10 10 10 11 Dividends on Preferred 0 0 14 14 14 Shares Shareholders Equity for 3,088 2,944 2,659 2,427 2,232 Book Value Calculation Bookvalue Per Share 14.42 13.73 12.43 12.05 10.94 2015 2016 2017 HI 2018 Common Tier 1 CAR Tier 1 CAR Total CAR 8/ 17
Deposits QIII 2018 Deposit Growth [$27.10Bn; 0.8 % YoY ; 0.01% QoQ; 2010-2017 CAGR 5.04%] Deposits Breakdown by Country ($M) QIII 2018 % Total YoY 2017 2016 2015 2014 19.61 20.30 21.79 22.57 24.01 25.09 24.81 26.64 27.10 Lebanon 22,355 82.50 (0.50) 21,878 20,597 19,868 19,047 Egypt 1,862 6.88 11.43 1,711 1,327 2,160 1,776 Jordan 815 3.01 (2.63) 841 875 921 905 UAE 676 2.49 (2.73) 744 637 554 526 Qatar 12 0.04 9.10 20 7 6 40 Iraq 42 0.15 10.53 32 39 33 7 Europe 1,336 4.93 14.78 1,416 1,329 1,295 1,343 2010 2011 2012 2013 2014 2015 2016 2017 QIII 2018 Deposits by Type of Client** Total Deposits by Currency HI 2018 Corporate 15.0% EGP 4.95% Others 4.97% Individuals 49.6% GBP 1.23% EURO 6.62% LBP 24.73% $26.8Bn* $27.10Bn HNW 35.4% * Excluding BLOM Euro CD s of $308M ** Individuals < $1M ; HNW >$1M USD 57.50% 9/ 17
1. Introduction 2. Financial Overview 3. Business Overview 4. BLOM s Shares 5. Appendix
Overview of BLOM Bank s Business Segments QIII 2018 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 QIII 2018 Sovereign Exposure [$24.6B] Corporate Securities [Bonds 71.8% ; Equities 18.1% ; Funds 10.1%] ($B) QIII 2018 2017 2016 2015 Central Bank 21.5 17.5 13.6 11.5 BDL 20.1 16.3 12.5 10.3 in LBP 8.5 6.2 5.6 4.6 in FC 11.6 10.1 6.9 5.7 Other 1.4 1.2 1.1 1.2 Government Securities 3.1 3.3 4.3 5.2 Domestic Exposure 2.7 2.9 2.9 3.6 FC Exposure 0.4 0.4 1.4 1.7 International 60.3% $795 M Regional 39.7% Commercial Loans Retail Loans ($M) QIII 2018 2017 2016 2015 ($M) QIII 2018 Lebanon Egypt Jordan Corporate Loans 1,720 1,807 1,690 1,632 SME s Loans 1,521 1,504 1,411 1,409 Real Estate 764 793 910 1,018 Others 173 200 178 200 Total 4,179 4,304 4,189 4,259 Housing 1,962 1,843 23 96 Car 579 305 66 208 Personal 391 262 60 69 Cards 169 140 3 26 Total 3,101 2,550 152 399 11/ 17
Loans QIII 2018 Net Lending Growth ($M) [$7.31Bn; (4.09%) YoY; (1.65)% QoQ; Loan to Deposit 26.99%] Breakdown of Lending by Country 5,178 5,591 6,028 6,345 6,910 7,196 7,164 7,538 7,313 ($M) QIII 2018 % Total YoY 2017 2016 2015 2014 Lebanon 5,085 69.53 (9.62) 5,432 5,277 5,165 5,054 Egypt 732 10.02 24.07 645 470 721 582 Jordan 543 7.43 7.52 523 512 507 456 UAE 469 6.41 15.80 434 359 294 287 Qatar 83 1.13 (10.75) 96 92 86 93 Iraq 9 0.12 0 8 10 12 1 Europe 392 5.36 (1.26) 400 444 411 417 2010 2011 2012 2013 2014 2015 2016 2017 QIII 2018 Net Interest Margin [Net Interest Income $621.0M; 13.54% YoY; 2010-2017 CAGR 5.9%] Breakdown of Lending by Currency (HI 2018) EGP 7.4% Others 4.8% 2.4% 2.3% 2.3% JOD 6.8% LBP 23.1% 2.3% 2.3% 2.2% 2.2% GBP 0.9% EURO 2.9% $7.54Bn 2.1% 2.1% 2010 2011 2012 2013 2014 2015 2016 2017 QIII 2018 USD 54.0% 12/ 17
Retail Lending QIII 2018 Retail Lending Growth ($M) [(2.79 %) YoY] Breakdown of Retail Lending by Country 2,414 2,690 2,904 2,904 3,201 3,101 ($M) QIII 2018 % Total YoY 2017 2016 2015 2014 Lebanon 2,550 82.2 (4.4) 2,670 2,398 2,309 2,188 1,840 2,099 Egypt 152 4.9 16.9 134 113 205 143 1,558 Jordan 399 12.9 1.8 397 393 390 359 Total 3,101 100 (2.79) 3,201 2,904 2,904 2,690 2010 2011 2012 2013 2014 2015 2016 2017 QIII 2018 Retail Loans Distribution by Product Retail Loans Distribution by Currency Personal Loans 12.61% Credit Cards 5.45% $3.10Bn Car Loans 18.67% FC 51.5% $3.10Bn LBP 48.5% Housing Loans 63.27% 13/ 17
Asset Quality/ Provisioning QIII 2018 Net P&L Provisions [(6.37%) YoY] ; NPLs Coverage Ratios (%) 5.44% 105.06 4.89% 69.80 4.44% 4.40% 82.10 4.19% 142.00 121.00 125.25 134.53 130.59 140.10 128.42 131.88 2.69% 3.20% 39.26 41.27 3.13% 3.27% 68.54 61.62 74.70 63.66 64.81 89.94 83.91 81.47 16.51 16.8 12.67 12.19 2010 2011 2012 2013 2014 2015 2016 2017 QIII 2018 2011 2012 2013 2014 2015 2016 2017 QIII 2018 Net P&L Provisions ($M) Gross Non-Performing/Gross Loans Coverage Ratio * Coverage Ratio (Specific Provisions) Asset Quality ; Coverage Ratio * Balance sheet Provisions ($M) (%) QIII 2018 Coverage 2017 2016 2015 2014 Lebanon 3.17 135.25 2.94 4.28 4.13 4.29 Egypt 1.13 100.09 0.54 0.62 1.44 1.98 Jordan 4.59 136.75 3.98 4.21 3.33 3.24 68 103 84 83 61 68 78 UAE 0.09 1377.59 1.69 1.78 10.33 1.95 Qatar 4.75 223.16 5.62 5.79 6.16 5.71 Iraq - - - 15.47 0.00 0.00 69 127 211 245 204 214 283 206 203 Europe 9.81 100.22 9.38 7.92 8.27 7.89 2011 2012 2013 2014 2015 2016 2017 QIII 2018 Loan Loss Reserve ** Unallocated Provisions * Specific Provisions & Real Guarantees ** Including unrealized interest 14/ 17
Business Segments QIII 2018 AUMs ($M) [(4.22%) YoY] Insurance Business - Premium ($M) [(4.99%) YoY] 5,976 5,567 5,205 5,610 7,156 6,719 7,122 7,841 7,474 79.64 68.99 63.74 70 68.34 75.11 80.42 47 45.39 33.20 37.20 39.08 37.93 45.32 43.66 41.49 42.28 40.99 2010 2011 2012 2013 2014 2015 2016 2017 QIII 2018 Beirut Stock Exchange Brokerage Share ($M) 2009 2010 2011 2012 2013 2014 2015 2016 2017 Life Non-Life Asset Management Business ($M) [(41.84%) YoY] 180 515 408 375 661 629 972 762 486 450.65 491.88 562.93 567.35 610.65 594.29 546.96 323.07 318.09 17.60 33.90 27.50 15.40 15.99 34.88 52.99 37.19 13.99 2010 2011 2012 2013 2014 2015 2016 2017 QIII 2018 BLOMINVEST Share (%) BSE Total Turnover ($M) 2010 2011 2012 2013 2014 2015 2016 2017 QIII 2018 15/ 17
1. Introduction 2. Financial Overview 3. Business Overview 4. BLOM s Shares 5. Appendix
BLOM BANK Shares QIII 2018 Common Shares GDR DR Program Preferred Shares 215,000,000 1998 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. 2001 (July) BLOM Bank consolidated the two categories into one. 2006 (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. 2006 (August) BLOM Bank listed 7,166,667 common(one third of all common shares) on the BSE. 2008 (June ) BLOM Bank listed all its shares on the Beirut Stock Exchange (BSE). 73,896,010 (34.37% of Total Common) 1998 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. 2006 (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:093688109 - DR ISIN: US0936881095 - Ratio: 1:1 - Depositary: Bank of New York - Effective Date: Jan 20,1998 - Underlying ISIN: lb0099221105 - Underlying SEDOL: 5400597 - Country: Lebanon - Industry: Banks 20,000,000 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 1,750,000 2011 (June) BLOM Bank redeemed its Preferred shares Classes 2004 and 2005. 2010 (October) BLOM Bank executed a share split of 1/10 for a total of 215M shares. 2017 (June) BLOM Bank increased its capital by $42.786M through the incorporation of an additional amount from the reserves account, resulting in a nominal value of LBP 1,500 per common share. 2011(July) BLOM Bank issued 20 million noncumulative perpetual redeemable preferred shares (Class 2011), Coupon: 7% 2017(June) BLOM Bank redeemed its 20 million preferred shares class 2011 16/ 17
BLOM BANK Share Performance QIII 2018 Earnings Per Common Share ($) * 2.20 2.25 2.37 Analyst Coverage Institution Recommendation Target Price ($) Date 1.86 1.46 1.48 1.53 1.58 1.60 EFG-Hermes Buy 14.70 Nov 2018 Arqaam Capital Buy 16.78 Oct 2018 HSBC Hold 13.10 Apr 2018 FFA Private Bank Overweight 13.00 Feb 2018 Deutche Bank Buy 12.25 Aug 2015 2010 2011 2012 2013 2014 2015 2016 2017 QIII 2018 * Annualized Dividends Pay-Out(%) & Dividends per Common Share($) 1.13 1.00 0.83 49.16 50.14 0.66 0.45 0.45 0.45 0.50 41.9 44.92 BLOM GDR Trading on Beirut & London Stock Exchanges ($)* IOB BSE Total Daily Average 2010 180,781,087 74,578,727 255,359,814 1,063,999 2011 75,730,415 13,043,123 88,773,538 369,889 2012 132,425,915 31,296,393 163,722,308 682,176 2013 35,012,956 13,481,017 48,493,973 202,058 31.5 30.99 30.15 32.2 2014 90,556,591 20,714,978 111,271,569 463,631 2015 78,783.936 20,348,525 99,132,461 550,736 2016 90,786,621 91,096,800 181,883,421 757,848 2017 60,843,963 126,870,950 187,714,913 782,145 2010 2011 2012 2013 2014 2015 2016 2017 Dividend Payout Ratio Dividend Per Share 2018 76,069,736 23,598,066 99,667,802 830.565 *BLOM BANK Executed a share split of 1/10 for a total of 215 M shares in October 2010 17/ 17
1. Introduction 2. Financial Overview 3. Business Overview 4. BLOM s Shares 5. Appendix
BLOM Bank s History QIII 2018 1950 2000 1951 First established 1974 Established AROPE INSURANCE with a leading French re-insurance company, LASCOR. 1976 Banorabe Bank was founded in Paris by BLOM BANK and other Swiss & Arab shareholders. 1994 Established an investment banking subsidiary (Banque d Affaires du Liban et d Outre-Mer) 1996 Acquired Banque Banorabe, which in turn owns 100% BLOM Bank Switzerland (in 1992) 2001 2006 2004 Established the private bank, BANK OF SYRIA AND OVERSEAS in Syria. BLOM BANK was the largest shareholder with a 39% share whereas IFC S share is of 10%. The remaining capital is subscribed by Syria individuals 2004 Opened branches in Jordan 2005 BLOM BANK s share of AROPE INSURANCE increased to reach 88.49% 2005 Acquired 96.78% of MISR ROMANIAN BANK. The Bank was renamed BLOM BANK EGYPT and BLOM BANK currently owns approximately 99% of it 2006 Issued 3 millions Global Depositary receipts GDR for a total amount of US$ 276 million and was listed on Luxembourg Stock Exchange 2006 Established an Islamic Bank, BLOM Development Bank 2007 2016 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 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. 2017 Acquired assets and liabilities of HSBC Bank Middle East Limited Lebanon I
BLOM Bank s History QIII 2018 1950 2000 1951 First established 1974 Established AROPE INSURANCE with a leading French re-insurance company, LASCOR. 1976 BanorabeBank 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) 2001 2006 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 of 10%. The remaining capital is subscribed by Syria individuals 2004 Opened branches in Jordan 2005 BLOM BANK s share of AROPE INSURANCE increased to reach 88.49% 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 Luxembourg Stock Exchange 2006 Established an Islamic Bank, BLOM Development Bank 2007 2016 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 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. 2017 Acquired assets and liabilities of HSBC Bank Middle East Limited Lebanon I
Peer Group Analysis QIII 2018 Net Income ($M) ROA ; ROE (Common) 382.95 409.68 16.49% 15.40% 8.19% 114.33 35.1% 45.06% 52.80% 1.50% 1.22% 0.66% Blom Audi Byblos Blom Audi Byblos Net Profits Cost to Income Ratio ROAA ROAE Financial Ratios Volatility of Return 25.73% 24.39% 6.82 14.67% 82.15 81.86 3.89 4.10 33.72 43.15 36.09 33.59 0.64 0.67 0.56 Blom Audi Byblos Price to Net Book Price to Earnings yield Blom Audi Byblos Mean Coefficient of Variation [Average Quarterly Return 2005 2018 ] [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