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Beirut: Blom bank, one of Lebanon's two largest lenders, said yesterday it expected strong profit growth in the first half of the year to continue into the second, thanks in part to growing operations in the Middle East.
The bank reported first half profit for this year of $130.68 million - a 40 per cent rise from the same period of 2007.
"In general this year was much better than last year," Sa'ad Azhari, chairman and general manager, told Reuters, adding he expects the figures for the next six months to be consistent with those of the first six months.
"The bank in the last three years opened in Egypt, Syria and Jordan... so our operations all over [the] place have been improving but we've especially had very strong growth in the region," he said in an interview yesterday.
"Looking at countries like Egypt and Syria, there is definitely strong growth and we expect it to continue."
Blom's shares closed on Thursday at $98.60 - about 10 per cent higher than at the start of the year. The bank has a market capitalisation of nearly $4.4 billion, making it the second largest bank by market value in Lebanon. Its main competitor in Lebanon is Bank Audi.
Azhari said Blom, which also has a presence in the UAE and Europe, had recently been awarded lic-ences in Saudi Arabia and Qatar and would be operational by the end of the year.
Overseas push
Its regional presence, especially in Egypt and Syria, would also contribute to an increase in overall overseas profit.
"Four years ago we had 92 per cent of our profit generated in Lebanon and eight per cent from our overseas operation. Last year, it was around 70/30 [per cent] and we expect in four years time to reach 50/50 [per cent]," Azhari said.
"We believe that we have a strong advantage in the region over other banks and we want to really make full benefit of our penetration in those markets."
Blom bought a bank and a brokerage arm in Egypt, has opened a private banking branch and wants to open an insurance business there.
It has similar operations in Syria, where Azhari said the bank had also applied for a licence to operate as a broker.
Azhari also said Blom would launch sector funds before the end of the year. Previously, Blom had only country funds in Lebanon and more recently in Jordan.
Blom's strategy has mainly focused on organic growth rather than acquisitions.
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