3 May 2019 07:11
Byblos Bank S.A.L.
Press Release - Q1 2019 Unaudited Results
3 May 2019
USD Million | Q1 2018 | Q1 2019 |
Net Profit | 28 | 27 |
Total Assets | 23,086 | 25,366 |
Customer Deposits | 18,134 | 18,505 |
Net Advances to Customers | 5,523 | 5,310 |
Total Equity | 2,185 | 2,229 |
Net Interest Margin | 1.38% | 1.12% |
Operating Expenses/Average Assets | 1.06% | 0.94% |
Cost-to-Income Ratio | 58.97% | 59.92% |
Offshore Foreign Currency Liquidity/ FCY Customer Deposits | 15.20% | 16.23% |
Loan Provisioning Coverage Ratio | 86.07% | 88.97% |
Byblos Bank's financial results for the first quarter of 2019 were in line with its expectations.
The Bank's net profit dropped 3% to stand at USD 27 million, down by USD 0.9 million from the same quarter of 2018. Indeed, a number of factors affected the level of profitability of the Bank, including the prioritization of prudence and stability over short-term profitability by its Board of Directors; the continuous adverse economic conditions and the deteriorating financial environment; the additional provisions required to cover possible loan losses; the Bank's prudent lending policies; the still prevalent opportunity cost of maintaining excess liquidity; and the increased cost on deposits.
Short-term foreign currency liquidity - in the form of short-term placements with above-investment-grade institutions - accounted for 16.23% of foreign currency deposits in the first quarter of 2019, surpassing both internal and international benchmarks. Furthermore, the Bank's Basel III Capital Adequacy Ratio remained at over 17%, once again well above the minimum regulatory requirement of 15%.
Byblos Bank will continue to focus on containing operating costs through productivity boosting initiatives and cost control measures. Operating expenses to average assets improved from 1.06% as at end-March 2018 to 0.94% as at end-March 2019. Moreover, the proactivity of the Bank's teams in devising workable solutions with some of its borrowers contributed in containing the level of non-performing loans. As a result, the Bank was able to achieve a comfortable coverage ratio of provisions of 88.97% against an acceptable non-performing loan ratio of 4.16%.
For the rest of 2019, the Bank will maintain its successful prudent policy given the persistent geopolitical challenges, and will consider taking further precautions to protect the interests of its customers and shareholders. Meanwhile, its teams will pursue the implementation of its technology and teamwork initiatives in order to improve services for a better customer experience, and boost productivity for a more competent working environment.
To view the text of the results, paste the following link into the address bar of your web browser:
https://www.byblosbank.com/Library/Assets//Gallery/FinancialResult/FinancialReports/Quarterly%20Consolidated%20Financial%20Statements/Quarterly%20Consolidated%20Financial%20Statements/Byblos%20Bank%20Unaudited%20Consolidated%20FS%20Q1%202019%20English.pdf
For further information, please contact:
Ziad El Zoghbi
Head of Finance and Administration
Phone: +961 1335 280
Email: zelzoghbi@byblosbank.com.lb
BYB.L (BYB)