BBK net profit tops 8pc to hit $66m in H1
Manama, July 23, 2013
BBK registered an 8.2 per cent increase in net profit to BD25.2 million ($66.84m) for the first half of the year, compared with BD23.3 million for the same period last year, a report said.
Earnings per share were up to 27 fils from 25 fils earlier, added the report in the Gulf daily News, our sister publication.
The bank's board has approved the financial results.
Profit growth was driven by increased net interest income and consistent growth in forex and investment income.
Net interest income increased 10 per cent to BD34.6 million at the end of June, compared with the corresponding period last year. Forex and investment income rose 73.3 per cent to BD9.6 million from BD5.5 million.
For the second quarter, the bank's net profit grew by 7.4 per cent to BD12.1 million, compared with BD11.3 million for the same period last year.
The bank's net interest income increased by 7.9 per cent to BD17.6 million.
Other income, including fees and commission, forex and investment income stood at BD10 million, as against BD9.9 million earlier.
Provision requirements for the quarter amounted to BD3 million against BD1.9 million in the corresponding previous period.
The total loan provision reserves including voluntary general provision have continued improving to account for any potential settlement volatility that may occur as a result of market and economic turbulence.
"The bank made substantial progress in the second quarter," chairman Murad Ali Murad said. "Strategic cost management was a critical factor in delivering our commitments to our stakeholders.”
"Loan originations and deposit growth have remained strong and we will continue to offer competitive banking products and services to meet customer needs," chief executive A Karim Bucheery said.
"We still perceive opportunities to build a stronger and more resilient BBK and are focused on implementing our 2013-2015 strategy. BBK continues to invest in human capital and in offering competitive products and services raising market standards," he added.
At BD24.8 million, operating costs remained almost unchanged year-on-year, due to the cost management strategy.
Meanwhile, the cost-to-income ratio improved from 48.5 per cent as of June last year to 43.8 per cent this year, mainly on account of 10.6 per cent growth in total operating revenues.
The bank's balance sheet saw growth of 10.6 per cent to BD3,211 million at the end of June from BD2,903 million for the same period last year.
This was mainly driven by 6.2 per cent growth in net loans and advances portfolio at BD1,550 million, compared with BD1,460 million earlier and a 4.1 per cent growth in non-trading investment securities portfolio to BD724 million, backed by adequate and conservative risk management practice.
Customer deposits grew by 10.2 per cent to BD2,276 million as of end-June.
Liquidity position continued to remain comfortable with liquid assets (cash and balances with central banks, treasury bills, financial assets at fair value through statement of income, and deposits and due from banks and other financial institutions) to total assets standing at 25.4 per cent, compared with 21.9 per cent last June and loan to total deposit ratio at 60.6 per cent, compared with 62.1 per cent last June. – TradeArabia News Service