LSE:BLBD

Stock Analysis Report

Executive Summary

BLOM Bank SAL, together with its subsidiaries, provides various retail, commercial, investment, and private banking services in Lebanon, Europe, the Middle East, and North Africa.

Rewards

Trading at 71.4% below its fair value

Revenue grew by 0.3% over the past year

Pays a reliable dividend of 32.13%

Risk Analysis

Earnings are forecast to decline by an average of -12.9% per year for the next 3 years

High level of non-cash earnings

Dividend of 32.13% is not well covered by earnings

Highly volatile share price over past 3 months

+ 1 more risk


Snowflake Analysis

Undervalued with adequate balance sheet and pays a dividend.


Similar Companies

Share Price & News

How has BLOM Bank SAL's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BLBD's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

8.8%

BLBD

-1.4%

GB Banks

6.2%

GB Market


1 Year Return

-81.1%

BLBD

-33.5%

GB Banks

-22.7%

GB Market

Return vs Industry: BLBD underperformed the UK Banks industry which returned -33.5% over the past year.

Return vs Market: BLBD underperformed the UK Market which returned -22.7% over the past year.


Shareholder returns

BLBDIndustryMarket
7 Day8.8%-1.4%6.2%
30 Day8.8%-22.0%-17.8%
90 Day-15.1%-34.6%-27.7%
1 Year-78.7%-81.1%-28.8%-33.5%-18.6%-22.7%
3 Year-80.4%-85.3%-32.0%-41.3%-13.4%-24.6%
5 Year-72.3%-81.8%-29.7%-43.8%1.3%-22.0%

Price Volatility Vs. Market

How volatile is BLOM Bank SAL's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BLOM Bank SAL undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BLBD ($1.85) is trading below our estimate of fair value ($6.47)

Significantly Below Fair Value: BLBD is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BLBD is good value based on its PE Ratio (1.5x) compared to the Banks industry average (4.6x).

PE vs Market: BLBD is good value based on its PE Ratio (1.5x) compared to the UK market (12.5x).


Price to Earnings Growth Ratio

PEG Ratio: BLBD's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BLBD is good value based on its PB Ratio (0.2x) compared to the GB Banks industry average (0.5x).


Next Steps

Future Growth

How is BLOM Bank SAL forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-12.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BLBD's earnings are forecast to decline over the next 3 years (-12.9% per year).

Earnings vs Market: BLBD's earnings are forecast to decline over the next 3 years (-12.9% per year).

High Growth Earnings: BLBD's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BLBD's revenue is expected to decline over the next 3 years (-7.8% per year).

High Growth Revenue: BLBD's revenue is forecast to decline over the next 3 years (-7.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BLBD's Return on Equity is forecast to be low in 3 years time (3.7%).


Next Steps

Past Performance

How has BLOM Bank SAL performed over the past 5 years?

5.4%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: BLBD has a high level of non-cash earnings.

Growing Profit Margin: BLBD's current net profit margins (50%) are higher than last year (47.6%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if BLBD's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare BLBD's past year earnings growth to its 5-year average.

Earnings vs Industry: BLBD earnings growth over the past year (5.4%) underperformed the Banks industry 29.6%.


Return on Equity

High ROE: BLBD's Return on Equity (15.7%) is considered low.


Next Steps

Financial Health

How is BLOM Bank SAL's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BLBD has a low level of unsold assets or inventory.

Debt Coverage by Assets: BLBD's debt is covered by short term assets (assets are 4.1x debt).


Financial Institutions Analysis

Asset Level: BLBD's level of assets compared to its equity is moderate.

Allowance for Bad Loans: BLBD has a low allowance for bad loans.

Low Risk Liabilities: BLBD's liabilities are made up of primarily low risk sources of funding.

Loan Level: BLBD has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BLBD's loans are broadly funded by customer deposits.

Level of Bad Loans: BLBD has a high level of bad loans (4.46%)


Next Steps

Dividend

What is BLOM Bank SAL's current dividend yield, its reliability and sustainability?

32.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: BLBD's dividend (32.13%) is higher than the bottom 25% of dividend payers in the UK market (2.7%).

High Dividend: BLBD's dividend (32.13%) is in the top 25% of dividend payers in the UK market (7.3%)


Stability and Growth of Payments

Stable Dividend: BLBD's dividends per share have been stable in the past 10 years.

Growing Dividend: BLBD's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BLBD's dividends in 3 years are not forecast to be well covered by earnings (255% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

7.9yrs

Average management tenure


CEO

Saad Azhari (58yo)

13.17s

Tenure

Mr. Saad Nomaan Azhari has been the Chairman and General Manager of Blom Bank Sal and its subsidiary Blominvest Bank S.A.L. since 2007. Mr. Azhari serves as Chairman & General Manager of Blom Bank Lebanon. ...


Leadership Team

NamePositionTenureCompensationOwnership
Saad Azhari
Chairman & GM13.17yrsno data1.91% LBP13.8m
Amr Azhari
GM & Executive Director4.92yrsno datano data
Amine Awad
General Manager2.92yrsno datano data
Talal Baba
Deputy GM2.92yrsno datano data
Rima Yassine
Head of Operationsno datano datano data
Maya Abou Alwan Kadi
Deputy GM & Head of Investment Bankingno datano datano data
Antoine Lawandos
Chief Information Officer14.17yrsno datano data
Mohamad Khaled
Head of Administration3.58yrsno datano data
Alexandre Mouradian
Head of Investor Relationsno datano datano data
Malek Costa
Head of Group Complianceno datano datano data

7.9yrs

Average Tenure

56yo

Average Age

Experienced Management: BLBD's management team is seasoned and experienced (7.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Saad Azhari
Chairman & GM13.17yrsno data1.91% LBP13.8m
Amr Azhari
GM & Executive Director4.92yrsno datano data
Fadi Osseiran
Executive Director12.17yrsno datano data
Naaman Azhari
Chairman & GM of Blom Bank Group13.17yrsno data7.85% LBP56.7m
Nicolas Saade
Independent Director30.17yrsno data2.66% LBP19.2m
Marwan Jaroudi
Lead Director4.17yrsno data2.26% LBP16.3m
Antoine Merheb
Independent Director5.92yrsno datano data
Ahmad Shaker
Independent Director2.92yrsno datano data
Mohamad Yassine Rabah
Independent Director2.92yrsno datano data
Emile Kharrat
Independent Director2.92yrsno datano data

5.4yrs

Average Tenure

59yo

Average Age

Experienced Board: BLBD's board of directors are considered experienced (5.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

BLOM Bank SAL's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BLOM Bank SAL
  • Ticker: BLBD
  • Exchange: LSE
  • Founded: 1951
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: US$721.513m
  • Shares outstanding: 206.15m
  • Website: https://www.blom.com.lb/english/home

Number of Employees


Location

  • BLOM Bank SAL
  • BLOM BANK Building
  • Verdun
  • Beirut
  • Lebanon

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BMBZ.FOTCPK (Pink Sheets LLC)YesGDS-REP 1 LBP1200 REGSUSUSDJul 1998
BLOBKBDL (Bourse de Luxembourg)YesGDS-REP 1 LBP1200 REGSLUUSDJul 1998
BLBDBDB (Bourse de Beyrouth)YesGDS-REP 1 LBP1200 REGSLBUSDJul 1998
BLBDLSE (London Stock Exchange)YesGDS-REP 1 LBP1200 REGSGBUSDJul 1998
BLBDLBATS-CHIXE (BATS 'Chi-X Europe')YesGDS-REP 1 LBP1200 REGSGBUSDJul 1998
BLOMBDB (Bourse de Beyrouth)Common SharesLBUSDSep 2006

Biography

BLOM Bank SAL, together with its subsidiaries, provides various retail, commercial, investment, and private banking services in Lebanon, Europe, the Middle East, and North Africa. The company’s Retail Banking segment offers deposits, housing loans, consumer loans, credit cards, funds transfer and foreign exchange services, and other branch related services to meet the personal banking and consumer finance needs of individuals. Its Corporate Banking segment provides loans and other credit facilities, trade finance and foreign exchange services, and deposit and current accounts for corporate and institutional customers. The company’s Treasury, Money and Capital Markets segment offers various treasury and investment products and services to investors and other institutional customers. Its Asset Management and Private Banking segment primarily provides investment products and services to institutional investors and intermediaries. The company also offers various insurance products and services, such as life insurance, including term life, education plans, retirement plans, and investment products; medical insurance comprising hospitalization plans and out-hospital plans; and motor insurance consisting of all risk, third party liability, and orange card. In addition, its insurance products include marine insurance, such as cargo and hull; property insurance comprising fire and burglary; and miscellaneous credit insurance consisting of travel, personal accident, engineering, workmen's compensation, general third party liability, professional liability, and money insurance. Further, BLOM Bank SAL provides brokerage services and Islamic banking products and services. The company was formerly known as Banque du Liban et d'Outre-Mer and changed its name to BLOM Bank SAL in December 2000. BLOM Bank SAL was founded in 1951 and is headquartered in Beirut, Lebanon. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 21:13
End of Day Share Price2020/03/30 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.