BLOM BANK SAL ANNUAL
REPORT 2020
ANNUAL
REPORT 2020
Table of Content
I | Chairman's Letter | 4 |
II | Key Figures | 6 |
III | Main Indicators | 8 |
IV | Organizational Chart | 9 |
V | Group Chart | 10 |
VI | Corporate Governance | 12 |
1. Code of Corporate Governance | ||
2. BLOM BANK S.A.L. Major Common Shareholders | ||
3. Honorary and Advisory | ||
4. Board of Directors | ||
5. Biographies of Key Members of BLOM BANK S.A.L. Management | ||
6. BLOM BANK S.A.L. Commercial Arrangements | ||
7. General Management of BLOM BANK S.A.L. | ||
VII | Management Discussion & Analysis 2020 | 33 |
1. The Operating Economic and Financial Environment in Lebanon in 2020 | ||
2. Overview | ||
3. Evolution of Total Assets | ||
4. Sources of Funds | ||
5. Uses of Funds | ||
6. Performance | ||
7. Dividend Distribution | ||
8. Risk Management and Basel Preparations | ||
9. Corporate Governance | ||
10. Universal Banking Services | ||
11. Information Systems and Technology | ||
12. People Development | ||
13. Sustainability |
2
VIII | Consolidated Financial Statements | 80 |
1. Auditors' Report | ||
2. Consolidated Income Statement for the year ended 31 December 2020 | ||
3. Consolidated Statement of Comprehensive Income for the year ended 31 December 2020 | ||
4. Consolidated Statement of Financial Position at 31 December 2020 | ||
5. Consolidated Statement of Changes in Equity for the year ended 31 December 2020 | ||
6. Consolidated Statement of Cash Flows at 31 December 2020 | ||
7. Notes to the Consolidated Financial Statements | ||
IX | Worldwide Correspondent Banks | 216 |
X | BLOM BANK Group Management & Network | 217 |
1. Banks & Financial Subsidiaries | ||
2. Insurance Subsidiaries |
3
Chairman's Letter
As is well known, Lebanon has suffered from a major financial and political crisis since early autumn 2019 that has left its scars on the economy and the banking system. BLOM Bank has tried to minimize the resulting damage to its balance sheet and Profit/Loss statement. Net profits came to USD 2.604 million compared to USD 115.411 million in 2019, noting that net profits included the USD 42.414 million made by BLOM Bank Egypt in 2020 and which were recorded in the Profit/Loss statement as income from discontinued operations. In addition, BLOM Bank booked USD 722.431 million in provisions for expected credit losses against USD 324.553 million booked in 2019.
ASSETS USD 29.72 billion
DEPOSITS USD 21.09 billion
LOANS USD 3.12 billion
In terms of balance sheet items, assets stood at USD 29.717 billion in 2020, lower by 10.75% from end year 2019; deposits (which exclude deposits of BLOM Bank Egypt) were USD 21.089 billion, lower by 20.30%; loans (which also exclude deposits of BLOM Bank Egypt) decreased to USD 3.121 billion, less by 46.32%; and shareholders' equity increased to USD 3.185 billion, up by 0.93%. And in terms of performance measures, its cost to income ratio stood at 63.45% and its net NPL ratio at 9.77%, despite the noticeable decline in income and credit worthiness.
Moreover, BLOM Bank is required to comply by all Central Bank of Lebanon (BDL) circulars as stipulated in the Code of Money and Credit, especially article 208. As a result, the Bank has complied by these circulars for the year 2020 accounts when calculating expected credit losses in accordance to the specified ratios listed in Appendix 6 of BDL circular number 44, and as amended by the intermediate circular number 567 issued by BDL on 26/8/2020.
Interesting to add that in its efforts to comply with regulations issued by BDL (Circular 154), which stipulate that all Lebanese banks must increase their equity by 20% by end February 2021, BLOM Bank "signed a definitive agreement on 15 January 2021 with the Arab Banking Corporation BSC (Bank ABC), whereby BLOM Bank SAL will sell its entire 99.4% stake in BLOM Bank Egypt, its Egyptian subsidiary, to Bank ABC, subject to obtaining the approvals of the Central Bank of Egypt and the Central Bank of Lebanon, among other regulatory approvals in Egypt and Bahrain". To be noted also that, "the proposed cash consideration to be offered by Bank ABC for 100% of BLOM BANK Egypt under the transaction is EGP 6,700 million (USD 427 million)". And I am glad to say that the deal was consummated fully by August 2021.
Remarkably, BLOM Bank did not stand still throughout the crisis, but continued to be dynamic and to develop partnerships and new products and services to help its clients and the wider segments of society. Three developments are worth mentioning:
- BLOM Bank undertook several strategic partnerships to provide support to the community, especially those affected by the 4 August 2020 Port of Beirut blast disaster. These include: i) Contracting a "Cash Assistance Program for Shelter" with UNHCR in order to transfer cash assistance to individuals who were affected by the blast, with a dedicated station for the program housed at our Head Office in Zeytouna; ii) Meeting various NGOs' requests to establish an online donation's link on their websites via BLOM's e-commerce
4
This is an excerpt of the original content. To continue reading it, access the original document here.
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Blom Bank SAL published this content on 04 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 January 2022 11:08:04 UTC.
