Leading Bahrain bank BBK has declared a new annual profit record of BD42.4 million ($112 million) for last year compared with BD31.8 million in 2011.

The bank has posted a robust growth in net interest income of 11.6 per cent to reach BD65.8 million compared with BD58.9 million reported in 2011, reported the Gulf daily News, our sister publication.

For the three months ended December 31, BBK reported a net profit of BD10.3 million compared with BD4.7 million for the same period of last year, the report stated.

"We are very proud of the bank's outstanding performance, both in financial terms as well as in achieving the main corporate goals that were set out in our 2010 - 2012 strategic plan," said chairman Murad Ali Murad.

"The fact that the bank has been able to produce consistent, rather than volatile, profit growth against a backdrop of challenging market conditions both internationally and domestically, speaks of BBK's strong position in being Bahrain's pioneer in retail and commercial banking and reflects its commitment to serve all its stakeholders with diligence.

"Through our new 2013-2015 strategic plan, we will seek to build upon what has been achieved over the last three years," he said.

"Challenging new objectives will be set for all our business units, both locally and in the other markets in which the bank operates, as we pursue growth opportunities and build on our strengths.

"The bank will also closely monitor and control its internal operating cost structure along with its overall level of efficiency," he said.

"Hence going forward, a key objective is to improve economy of scale for the bank," he added.

Foreign exchange (FX) and investment income stood at BD13.9 million compared with BD20.6 million reported in the same period of last year.

Nevertheless, 2011 FX and investment income included non-recurring income of BD9.2 million that arose from the exchange of BBK subordinated debt notes to senior debt notes, and a gain on sale of sub-debt of BD600,000.

Excluding such non-recurring income, FX and investment income would have grown by 21.9 per cent.

The board is recommending a profit distribution of 20 per cent, comprising 10 per cent cash dividend per share, and 10 per cent stock dividend per share.

"Last year was the final year of BBK's 2010-2012 strategic plan," said chief executive Karim Bucheery.

"A number of strategic initiatives were implemented throughout 2012 which contributed in strengthening BBK's relationship with its customers and enabled it to achieve these astonishing results.

"Those new initiatives included the launch of the new premium banking service, Al Wajaha, which offers a bouquet of financial privileges and unrivalled package of features and benefits specially tailored to meet the banking, travel, and lifestyle needs of BBK's most discerning customers.

"The bank has successfully implemented almost all of the key growth initiatives outlined in its corporate strategic plan," he added.

"We have also been heavily involved in investing in other strategic initiatives of the bank such as the appointment of the highly respected consulting firm, Booz & Company, to undertake a "Performance Optimisation Review" of all our businesses, aiming to boost the performance and enhance the efficiency across the BBK group," he added.-TradeArabia News Service