FFA: BLOM shares stable
Audi and Byblos to decline

Growth in net profit, assets, deposits,

and loans of each of the banks in 2015

FFA Private Bank revised down the target price on the shares of Bank Audi and Byblos Bank due to tough operating conditions and foreign exchange devaluation in key global markets. FFA kept the target price on Blom Bank’s stock unchanged.

The fair value estimate for Bank Audi was lowered to USD 7 from USD 7.50, while it was slashed on Byblos Bank’s stock to USD 1.60 from USD 1.65. Blom Bank’s shares remained unchanged at USD 11.

“We note that Blom Bank is the sole overweight in our coverage universe given its higher quality core income, above average margins, efficiencies and return on equity,” FFA said in a report. Blom also enjoys stable earnings growth, solid capitalization, and ample liquidity, while its approach to growth is conservative, according to the report.

FFA expects the three banks to remain resilient, despite domestic sluggishness driven by economic and political uncertainty and “subdued inflow of remittances from expatriates, mainly from Gulf countries, a likely consequence of lower oil prices.”

FFA said it anticipates a growth in net profit, assets, deposits, and loans of each of the banks in 2015 despite the regional turmoil and the unfavorable sociopolitical conditions at home.