Byblos Bank reports 9.7% Net Income decline while 2.5% Revenue growth
03 Feb 2016 • About Byblos Bank (
$BYB) • By InTwits
Byblos Bank reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Byblos Bank has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's a lot of higher than industry average of 3.1%.
- CAPEX is quite volatile: 45,972 in 2015, 23,834 in 2014, 18,674 in 2013, 29,919 in 2012, 57,381 in 2011
- The company has potentially unprofitable business model: ROIC is at 6.2%
- It operates with high leverage: Net Debt/EBITDA is 7.4x while industry average is
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Byblos Bank ($BYB) key annual financial indicators
| mln. LBP | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 1,566,078 | 1,607,580 | 1,636,485 | 1,759,220 | 1,803,302 | 2.5% |
| Net Income | 259,894 | 246,450 | 224,683 | 252,792 | 228,185 | -9.7% |
Balance Sheet
|
|---|
| Cash | 4,282,468 | 5,507,572 | 5,809,930 | 7,048,785 | 7,236,237 | 2.7% |
| Short Term Debt | 1,651,150 | 1,344,965 | 1,444,064 | 982,319 | 861,966 | -12.3% |
| Long Term Debt | 969,553 | 919,607 | 506,489 | 859,967 | 862,599 | 0.3% |
Cash flow
|
|---|
| Capex | 57,381 | 29,919 | 18,674 | 23,834 | 45,972 | 92.9% |
Ratios
|
|---|
| Revenue growth | 4.7% | 2.7% | 1.8% | 7.5% | 2.5% | |
| Net Income Margin | 16.6% | 15.3% | 13.7% | 14.4% | 12.7% | -1.7% |
| CAPEX, % of revenue | 3.7% | 1.9% | 1.1% | 1.4% | 2.5% | 1.2% |
| ROIC | 6.8% | 5.7% | 5.7% | 6.9% | 6.2% | -0.7% |
| ROE | 15.1% | 14.0% | 9.8% | 11.1% | 9.5% | -1.6% |
Revenue and profitability
Byblos Bank's Revenue increased on 2.5% in 2015.
Net Income marign decreased slightly on 1.7 pp from 14.4% to 12.7% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 2.5% in 2015. CAPEX/Revenue increased slightly on 0.69 pp from 1.9% in 2012 to 2.5% in 2015. For the last three years the average CAPEX/Revenue was 1.7%.
Return on investment
The company operates at low ROIC (6.19%) and ROE (9.48%). ROIC decreased slightly on 0.70 pp from 6.9% to 6.2% in 2015. ROE decreased slightly on 1.6 pp from 11.1% to 9.5% in 2015.
Leverage (Debt)
Debt decreased on 6.4% in 2015 while cash increased on 2.7% in 2015.
Appendix 1: Peers in Banks
Below you can find Byblos Bank benchmarking vs. other companies in Banks industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Banque Intl Arabe De Tunisie ($BIND) | 9.5% | -20.2% | 17.3% | 50.2% | |
| European Islamic Investment Bank ($EIIB) | -41.8% | 121.2% | 12.6% | 42.3% | |
| Tsb Banking Grp ($TSB) | | -3.2% | -33.8% | 39.2% | -1.4% |
| VTB Bank JSC ($VTBR) | 23.8% | 48.1% | 16.5% | 29.8% | |
| Bank Audi S.A.L. ($BQAD) | | 9.1% | 11.7% | 23.9% | 7.1% |
| |
|---|
| Median (43 companies) | 9.8% | 10.2% | 4.8% | 12.1% | 3.7% |
|---|
| Byblos Bank ($BYB) | | 2.7% | 1.8% | 7.5% | 2.5% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Lloyds Banking Group ($LLPC) | | 8.0% | 8.9% | 13.1% | 13.6% |
| Banco Santander Sa ($BNC) | 2.2% | 2.7% | 2.6% | 8.9% | 10.2% |
| Finansbank ($FBKD) | 2.0% | 1.9% | 2.8% | 8.5% | |
| Tsb Banking Grp ($TSB) | 1.3% | 1.8% | 4.4% | 7.2% | 3.4% |
| Guaranty Trust Bank ($GRTB) | 10.0% | 6.7% | 6.1% | 6.8% | |
| |
|---|
| Median (40 companies) | 2.3% | 2.4% | 2.8% | 2.2% | 2.5% |
|---|
| Byblos Bank ($BYB) | 3.7% | 1.9% | 1.1% | 1.4% | 2.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Commercial Intl Bank(Egypt)S.A.E ($CBKD) | 16.3% | 21.7% | 26.9% | 30.1% | |
| Guaranty Trust Bank ($GRTB) | 14.2% | 19.8% | 18.9% | 17.8% | |
| Mcb Bank Ltd ($MCBS) | 18.7% | 15.0% | 14.4% | 15.8% | |
| Zenith Bank ($ZENB) | 13.8% | 19.0% | 17.6% | 15.0% | |
| United Bank Ltd ($UBLS) | 12.6% | 11.7% | 11.8% | 13.8% | |
| |
|---|
| Median (43 companies) | 7.1% | 6.4% | 5.3% | 4.4% | 3.1% |
|---|
| Byblos Bank ($BYB) | 6.8% | 5.7% | 5.7% | 6.9% | 6.2% |
