Bahrain
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The results tell the tale: BLOM Bank recorded the highest profits in Lebanon for the first half of 2009 as it reached $138.3m, up 5.8 percent from the same period last year.
It also realised the highest return on average equity (common shares) of 19.73 percent, and the highest earnings yield (end of June price) of 16.39 percent among listed banks. Total assets reached $19.42bn at end-June - an increase of $1.52bn in the first six months of 2009, and total deposits reached $16.69bn at end-June, up $1.58bn or 10.47 percent in the first six months of the year.
And in July Fitch Ratings affirmed BLOM Bank's Support Rating at ‘5'. Fitch does not presently maintain any other ratings on BLOM.
Fitch said it considers that the Lebanese authorities would have a very high propensity to support BLOM if necessary, in view of its systemic importance to the banking sector and to the economy as a whole. However, the bank's Support Rating reflects the fact that given the low sovereign rating (‘B-'), the sovereign's ability to provide support, although possible, cannot be wholly relied on.
BLOM is the second largest bank in Lebanon by assets, accounting for about 20 percent of system assets and almost a quarter of system deposits at end 2008. It offers a wide range of corporate and retail services. It operates in Cyprus, Egypt, France, Jordan, Qatar, Romania, Switzerland, Syria, the UAE and UK, and has an investment subsidiary in Saudi Arabia. BLOM's foreign operations account for about a third of the bank's assets and 27 percent of its profits.
It also realised the highest return on average equity (common shares) of 19.73 percent, and the highest earnings yield (end of June price) of 16.39 percent among listed banks. Total assets reached $19.42bn at end-June - an increase of $1.52bn in the first six months of 2009, and total deposits reached $16.69bn at end-June, up $1.58bn or 10.47 percent in the first six months of the year.
And in July Fitch Ratings affirmed BLOM Bank's Support Rating at ‘5'. Fitch does not presently maintain any other ratings on BLOM.
Fitch said it considers that the Lebanese authorities would have a very high propensity to support BLOM if necessary, in view of its systemic importance to the banking sector and to the economy as a whole. However, the bank's Support Rating reflects the fact that given the low sovereign rating (‘B-'), the sovereign's ability to provide support, although possible, cannot be wholly relied on.
BLOM is the second largest bank in Lebanon by assets, accounting for about 20 percent of system assets and almost a quarter of system deposits at end 2008. It offers a wide range of corporate and retail services. It operates in Cyprus, Egypt, France, Jordan, Qatar, Romania, Switzerland, Syria, the UAE and UK, and has an investment subsidiary in Saudi Arabia. BLOM's foreign operations account for about a third of the bank's assets and 27 percent of its profits.
Pipe dreams
Posted by TALAL on 20 December 2009 at 18:19 UAE time
With all due respect the list in not only wrong but misleading as well. I agree with Paddy that you need to come up with more meaningful criteria for ranking Banks as this doesn't work at all. When new financial results are out next year at least 3 on the list may end up up the creek without a paddle.
Posted by TALAL on 20 December 2009 at 18:19 UAE time
With all due respect the list in not only wrong but misleading as well. I agree with Paddy that you need to come up with more meaningful criteria for ranking Banks as this doesn't work at all. When new financial results are out next year at least 3 on the list may end up up the creek without a paddle.
Agree with the list
Posted by SG, Kuwait, Kuwait on 9 December 2009 at 09:50 UAE time
I have been working in the corporate banking field for over 5 years now and the banks listed above are quite secure. Choosing randomly and checking the historic audited financials you will see that these banks have been taking adequate provisions over the years unlike banks like Commercial Bank of Kuwait that took extreme sudden provisions making them reporting losses in 3Q of 09 whereas KD100m for the same period the previous year; that goes to show the type of credit they run. As for all the questions Paddy is asking, well an article that answers all those questions might as well be a book cos you are asking for financial analyses of each bank which could easily need 100 pages or so (4 pages each minimum). This report is a morale booster but is based on financials issued by the best international auditors. and, by the way, i do not work in any of those top banks but i intend to.
Posted by SG, Kuwait, Kuwait on 9 December 2009 at 09:50 UAE time
I have been working in the corporate banking field for over 5 years now and the banks listed above are quite secure. Choosing randomly and checking the historic audited financials you will see that these banks have been taking adequate provisions over the years unlike banks like Commercial Bank of Kuwait that took extreme sudden provisions making them reporting losses in 3Q of 09 whereas KD100m for the same period the previous year; that goes to show the type of credit they run. As for all the questions Paddy is asking, well an article that answers all those questions might as well be a book cos you are asking for financial analyses of each bank which could easily need 100 pages or so (4 pages each minimum). This report is a morale booster but is based on financials issued by the best international auditors. and, by the way, i do not work in any of those top banks but i intend to.
Tangible evidence missing
Posted by Paddy, Dubai, UAE on 26 November 2009 at 00:04 UAE time
The report talks about the performance of each bank at a very high level without delving deep into the numbers. For example, what is the net NPL for each bank in comparison with their assets? What is the exposure ratio (total exposure to the risky sectors out of the total assets) of each bank to risky sectors like Credit Cards, Construction & Real Estate etc? What is the recovery position with respect to Credit Card advances? What is the exposure of each bank (especially UAE and Saudi banks) to the Saad and Algosaibi groups? Have they kept aside provisions against these troubled assets? What has each bank done differently to tide over the financial crisis? HAs there been any fresh capital infusion into any of these banks? What is the Capital Adequacy Ratio of these banks? The lack of transparency with regard to reporting in the Middle East financial sector means that the banks may not have fully reported their bad assets. Maybe the report is intended to be a morale booster to the general public and not exactly based on hard facts.
Posted by Paddy, Dubai, UAE on 26 November 2009 at 00:04 UAE time
The report talks about the performance of each bank at a very high level without delving deep into the numbers. For example, what is the net NPL for each bank in comparison with their assets? What is the exposure ratio (total exposure to the risky sectors out of the total assets) of each bank to risky sectors like Credit Cards, Construction & Real Estate etc? What is the recovery position with respect to Credit Card advances? What is the exposure of each bank (especially UAE and Saudi banks) to the Saad and Algosaibi groups? Have they kept aside provisions against these troubled assets? What has each bank done differently to tide over the financial crisis? HAs there been any fresh capital infusion into any of these banks? What is the Capital Adequacy Ratio of these banks? The lack of transparency with regard to reporting in the Middle East financial sector means that the banks may not have fully reported their bad assets. Maybe the report is intended to be a morale booster to the general public and not exactly based on hard facts.
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