Saturday, Oct 22, 2011
DEAD SEA, Jordan (Zawya Dow Jones)--Blom Bank, Lebanon's second-largest lender by assets, expects full-year net profit to be flat compared to 2010 as a result of the geopolitical upheaval taking place in the Middle East.
"Regionally there were problems. Even in Lebanon in the first half of this year we had a major political problem as we had no government," Blom's Chairman Saad Azhari told Zawya Dow Jones on the sidelines of a World Economic Forum meeting on the Dead Sea in Jordan.
Blom Bank in 2010 made around $330 million in net profit. "In terms of profits (for 2011), we expect to be closely to where we were last year," Azhari said. For 2012, the bank aims to post a modest growth in earnings.
The Lebanese bank is active in a dozen countries, including Jordan, Egypt and Syria, the latter through a minority stake.
"We expect next year to still feel the effects of the changes happening because of the pressure on banks. So we expect only moderate growth, not the double-digit growth of the past few years," Azhari said.
Blom also plans to expand in countries such as Saudi Arabia or Qatar by applying for broader licences or upgrading existing branches. The bank is not pursuing any mergers or acquisitions and prefers organic growth.
-By Nicolas Parasie, Dow Jones Newswires; +9714 446-1681; nicolas.parasie@dowjones.com
Copyright (c) 2011 Dow Jones & Co.
(END) Dow Jones Newswires
22-10-11 1123GMT
