13% increase in net income for BankMed for the first half of 2011

Beirut – BankMed, a leading bank in Lebanon, announced that net profit for the first half of 2011 increased by 13% to reach US$59.4 million compared to US$52.6 million for the corresponding period of last year. The bank’s profitability has witnessed strong steady growth since 2006.

All income items recorded significant growth, with net interest income, fees and commissions and other operating income up by 23%, 36% and 16% respectively to US$106 million, US$26 million and US$72 million respectively. Net financial revenues increase by 28% to US$205 million, and total operating expenses increased by 8% to reach US$103 million.

In line with its prudent and conservative credit policies, BankMed has allocated an additional US$28 million of general provisions thereby increasing the nonperforming loans coverage ratio to 219%. It is worth mentioning that the Bank’s income, investment and lending portfolios were not affected by the events taking place in some Arab countries or the financial crisis witnessed in some foreign countries.

BankMed’s loans and customer deposits grew by 19% and 7% during the year to US$3,935 million and US$9,069 million by June 2011 respectively. With the early adoption of the International Financial Reporting Standards (IFRS-9) effective 1/1/2011, total assets reached US$11,420 million. Off-balance exposure relating to trade finance activities grew by 5% in six months to US$1,128 million.

The article above has been written by BankMed Lebanon. It can be accessed via Internet at the following web address: http://www.bankmed.com.lb.