Blom Bank deploys its money very carefully but also very effectively. The Lebanese bank decided several years ago not to compete with foreign banks in the corporate loan space and instead invest in securities, in search of higher returns. The strategy worked: for the five years ending in 2008, the bank had a loan-to-asset ratio of 20 per cent versus the sector average of 23 per cent, and a loan-to-deposit ratio of 22 per cent versus the sector average of 28 per cent.
But Blom also has the highest return on equity and assets, and highest net interest margin among the biggest listed banks in Lebanon. Janany Vamadeva, a senior analyst at HC Brokerage in Dubai, said the bank also held a healthy portfolio of retail loans, adding to its margins. Ms Vamadeva has a "buy" rating, with a price target of US$115. The shares closed yesterday at US$86.7. The Lebanese lender generated an average return of 20 per cent on equity over the five years to 2008 versus the sector average of 15 per cent.
Blom owes much of its profitability to cost-control initiatives, which brought the cost-to-income ratio down to 43 per cent last year. Ms Vamadeva expects it drop to 39 per cent by 2014. The bank's main competitors, Bank Audi and Byblos Bank, are at 45 per cent and 43 per cent, respectively. Blom is the second-largest bank in Lebanon, with market capitalisation of US$1.9 billion. It is listed on the Beirut and London stock exchanges and its major shareholders include the Bank of New York Mellon, which holds a 34.4 per cent stake.
Blom is the only bank in its sector enjoying strong loan recoveries, which has enabled it to avoid provisioning for non-performing loans. halsayegh@thenational.ae
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On Women's Day
Dr Nawal Al-Hosany: Why more women should be on the frontlines of climate action
Shelina Janmohamed: Why shouldn't a spouse be compensated fairly for housework?
Justin Thomas: Challenge the notion that 'men are from Mars, women are from Venus'
The National Editorial: Is there much to celebrate on International Women's Day 2021?
England World Cup squad
Eoin Morgan (capt), Moeen Ali, Jofra Archer, Jonny Bairstow, Jos Buttler (wkt), Tom Curran, Liam Dawson, Liam Plunkett, Adil Rashid, Joe Root, Jason Roy, Ben Stokes, James Vince, Chris Woakes, Mark Wood
Joker: Folie a Deux
Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson
Director: Todd Phillips
Rating: 2/5
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
The specs
Engine: 2-litre or 3-litre 4Motion all-wheel-drive Power: 250Nm (2-litre); 340 (3-litre) Torque: 450Nm Transmission: 8-speed automatic Starting price: From Dh212,000 On sale: Now
UAE currency: the story behind the money in your pockets
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The Outsider
Stephen King, Penguin
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Sweet%20Tooth
Mohamed bin Zayed Majlis
The%20specs%3A%20Taycan%20Turbo%20GT
The specs: 2018 Chevrolet Trailblazer
Price, base / as tested Dh99,000 / Dh132,000
Engine 3.6L V6
Transmission: Six-speed automatic
Power 275hp @ 6,000rpm
Torque 350Nm @ 3,700rpm
Fuel economy combined 12.2L / 100km
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The%20specs
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
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The specs
Engine: 2.9-litre twin-turbo V6
Power: 540hp at 6,500rpm
Torque: 600Nm at 2,500rpm
Transmission: Eight-speed auto
Kerb weight: 1580kg
Price: From Dh750k
On sale: via special order
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Email sent to Uber team from chief executive Dara Khosrowshahi
From: Dara
To: Team@
Date: March 25, 2019 at 11:45pm PT
Subj: Accelerating in the Middle East
Five years ago, Uber launched in the Middle East. It was the start of an incredible journey, with millions of riders and drivers finding new ways to move and work in a dynamic region that’s become so important to Uber. Now Pakistan is one of our fastest-growing markets in the world, women are driving with Uber across Saudi Arabia, and we chose Cairo to launch our first Uber Bus product late last year.
Today we are taking the next step in this journey—well, it’s more like a leap, and a big one: in a few minutes, we’ll announce that we’ve agreed to acquire Careem. Importantly, we intend to operate Careem independently, under the leadership of co-founder and current CEO Mudassir Sheikha. I’ve gotten to know both co-founders, Mudassir and Magnus Olsson, and what they have built is truly extraordinary. They are first-class entrepreneurs who share our platform vision and, like us, have launched a wide range of products—from digital payments to food delivery—to serve consumers.
I expect many of you will ask how we arrived at this structure, meaning allowing Careem to maintain an independent brand and operate separately. After careful consideration, we decided that this framework has the advantage of letting us build new products and try new ideas across not one, but two, strong brands, with strong operators within each. Over time, by integrating parts of our networks, we can operate more efficiently, achieve even lower wait times, expand new products like high-capacity vehicles and payments, and quicken the already remarkable pace of innovation in the region.
This acquisition is subject to regulatory approval in various countries, which we don’t expect before Q1 2020. Until then, nothing changes. And since both companies will continue to largely operate separately after the acquisition, very little will change in either teams’ day-to-day operations post-close. Today’s news is a testament to the incredible business our team has worked so hard to build.
It’s a great day for the Middle East, for the region’s thriving tech sector, for Careem, and for Uber.
Uber on,
Dara
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The specs
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While you're here
Mina Al-Oraibi: Why Hope is an apt name for UAE's Mars probe
Martin Rees: Space exploration is also about responsibility
Alasdair Soussi: The Arab world's role in the space race
'My Son'
Director: Christian Carion
Starring: James McAvoy, Claire Foy, Tom Cullen, Gary Lewis
Rating: 2/5