Bank of Bahrain and Kuwait (BBK) has reported six per cent rise in net profit at BD14.9 million ($39.52 million) for the first quarter of this year, compared with BD14 million in the same period last year.

Earnings per share for the period have increased from 13 fils to 14 fils, said a report in the Gulf Daily News (GDN), our sister publication.

Chairman Murad Ali Murad said the increase in net profit was mainly attributable to robust growth in fees and commission income and healthy increase in net interest income.

Most business indicators are showing an encouraging trend and the current year marks the end of a strategic cycle and sets the path for the 2016-2018 cycle, he added.

Fees and commission income grew 8.4 per cent to BD7.3 million, compared with BD6.7 million reported in the same period last year.

At BD17.9 million, net interest income is 4.7 per cent higher than the amount reported in the first quarter last year.

The improvement was mainly driven by 9.2 per cent growth in loans and advances portfolio and 9.5 per cent growth in non-trading investments portfolio, on a similarly comparative basis.

Forex and investment income was BD4.3 million as against BD4.8 million earlier.

Enhanced overall credit quality was reflected in relatively lower loss provisions of BD2.9 million, of which BD1 million was on the account of general provisions, which is aimed at creating a selective coverage for all risk-weighted exposures.

Comprehensive income was BD9.4 million as against BD20.2 million earlier.

The drop was mainly driven by the fluctuation in the market prices for bonds and equities.

The cost-to-income ratio stands at 39.7 per cent as of March 31.

The balance sheet grew by 10.9 per cent to BD3,683 million as of March 31.

Net loans and advances grew 9.2 per cent to BD1,887 million and non-trading investment rose by 9.5 per cent to BD797 million.

The growth in the balance sheet was fuelled by 13.7 per cent growth in customer deposits to BD2,588 million, in addition to the $400 million capital market funding raised last month.

The ratio of liquid assets (cash and balances with central banks, treasury bills, financial assets at fair value through statement of income and deposits and dues from banks and other financial institutions) to total assets was at 23.7 per cent as against 22.1 per cent earlier, and loan-to-total deposit ratio was 67 per cent, as against 66.1 per cent earlier.

Chief executive A Karim Bucheery said the results continue the bank's track record of increased profitability on a year-on-year basis. - TradeArabia News Service