BLOM Bank: A Comprehensive Overview of Lebanon's Banking Giant
Established in 1951, BLOM Bank (Banque du Liban et D’Outre Mer) has grown into one of the most prominent financial institutions in Lebanon. Headquartered in Beirut, the bank serves as a cornerstone of the Lebanese financial sector, offering a diverse array of services ranging from retail banking to complex asset management. Its strategic growth has seen it expand beyond national borders, catering to the Lebanese diaspora and establishing a global footprint.
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Key Facts
- Founded: 1951 in Beirut, Lebanon.
- Market Status: Publicly traded on the Beirut Stock Exchange and the Luxembourg Stock Exchange.
- Global Reach: Operations present in 11 countries.
- Market Position: Ranked as Lebanon's second largest bank by total assets as of 2018.
- Workforce: Over 2,363 employees within Lebanon.
History and Evolution
BLOM Bank began its operations during a period of significant growth for the Lebanese banking industry. One of its primary founders was Hussein Al Oweini, a notable businessman and politician. The bank's ambition for growth was evident early on, with the opening of its first international branch in Jeddah, Saudi Arabia, in 1953.
The Lebanese Civil War served as a catalyst for the bank to expand its international operations, allowing it to better serve the needs of Lebanese citizens living abroad. A pivotal era of leadership began in 1962 when Naaman Azhari became general manager, later ascending to chairman of the board in 1971. By 2007, Dr. Naaman Azhari was appointed chairman of the BLOM BANK Group, eventually becoming honorary chairman in 2020. Leadership then transitioned to his son, Saad Azhari, who currently serves as chairman of the board and general manager.
In terms of branding and acquisition, the institution officially adopted the name BLOM BANK in 2000 and expanded its domestic reach in 2017 by acquiring the Lebanese subsidiary of HSBC Bank Middle East.
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Products and Financial Services
BLOM Bank provides a comprehensive suite of financial products designed for individual, corporate, and institutional clients. These services include:
- Consumer and Retail Banking: Savings accounts, credit cards, and mortgage loans.
- Corporate and Investment Banking: Corporate finance, private equity, and capital market services.
- Wealth Management: Private banking, asset management, and securities.
- Specialized Services: Islamic banking and insurance products.
Corporate Governance and Sustainability
The bank has integrated global standards into its operational framework. In December 2014, BLOM Bank joined the UN Global Compact, committing to ten core principles and the submission of annual Communication on Progress Reports to support United Nations goals.
Furthermore, BLOM Bank distinguished itself as the first bank in the Arab World to sign the Investors for Governance and Integrity (IGI) Declaration. This commitment ensures the implementation of rigorous Governance and Integrity Rating guidelines.
Ownership and Network
The bank operates through a network of financial units and subsidiaries. A significant structural change occurred in January 2021, when the group sold its Egyptian subsidiary to Bank ABC of Bahrain for $427 million.
As of September 2023, the ownership structure of BLOM Bank is distributed among several entities and families:
| Shareholder | Ownership Percentage |
|---|---|
| The Bank of New York | 34.37% |
| Banorabe S.A., SPF | 18.73% |
| Azhari Family | 7.53% |
| Chaker Family | 4.83% |
| Saade Family | 2.55% |
| Jaroudi Family | 2.17% |
| Khoury Family | 1.80% |
Legal Developments
In 2024, BLOM Bank became the petitioner in a case reviewed by the Supreme Court of the United States: BLOM Bank SAL v. Honickman. This legal matter stems from a 2019 lawsuit filed under the Justice Against Sponsors of Terrorism Act (JASTA), in which victims of Hamas alleged that the bank provided financial services to the organization. The Supreme Court's review focuses on a dispute regarding the Federal Rules of Civil Procedure, specifically Rule 60(b) concerning judgment finality. Oral arguments were held on March 3, 2025, with a final opinion expected by July.
Frequently Asked Questions
When was BLOM Bank founded and where is it based?
BLOM Bank was founded in 1951 and is headquartered in Beirut, Lebanon.
What is the bank's current market position in Lebanon?
Based on 2018 data, BLOM Bank is the second largest bank in Lebanon in terms of total assets, following Bank Audi.
Which international stock exchanges list BLOM Bank shares?
The bank's shares are listed on both the Beirut Stock Exchange and the Luxembourg Stock Exchange.
What is the significance of the BLOM Bank SAL v. Honickman case?
It is a legal dispute before the U.S. Supreme Court regarding whether the bank aided and abetted terrorism by providing services to Hamas, specifically focusing on the legal finality of judgments under Rule 60(b).
How does BLOM Bank approach sustainability?
The bank is a member of the UN Global Compact and was the first Arab bank to sign the Investors for Governance and Integrity (IGI) Declaration.