BBK Q1 net profit hits $31.8m; up 3pc
Manama, April 16, 2012
BBK reported a net profit of BD12 million ($31.8 million) in the first quarter of 2012, with a growth of three per cent compared to BD11.7 million for the same period last year.
'We are pleased with the achieved results for the first quarter of 2012, which marks the last year of the bank's current strategic plan 2010-2012,' said chairman Murad Ali Murad.
'It also gives an indication of good performance despite challenging market conditions,' he added.
The bank reported a growth in net interest income of 7.9 per cent during the period to reach BD15.1 million, mainly driven by the growth in net loans and advances, the growth of fixed income investments portfolio and by tight management of funding cost.
Fees and commissions recorded a solid growth of 15.8 per cent compared to March 2011 to reach BD6.7 million. Foreign exchange and investment income stood at BD3.1 million compared to BD4.6 million last time.
Operating costs increased by 4.4 per cent, mainly due to the bank's continuous plans to invest in various strategic initiatives, improving its customer service and expanding its customers outreach.
BBK's new modernised branch in Hidd is expected to be opened during the year.
BBK's balance sheet as of March 31 has shown a growth of 15.9 per cent over the same period of last year, and stood at BD2.8 billion.
The growth in the balance sheet was driven by growth in net loans and advances of 9.4 per cent to stand at BD1.415 billion, and the rise in the non-trading investment portfolio by 56.9 per cent to reach BD646 million.
Customer deposits, on the other hand, grew by 14.22 per cent to reach BD1.966 billion.
This was mainly due to quality and continuous customers' trust and confidence in the bank.
Liquidity continued to remain at a very comfortable level with liquid assets to total assets standing at 22.4 per cent with loan to customer deposit ratio at 72 per cent.
'Despite the challenging operating environment, we are pleased to report a positive growth results at the start of the year,' said chief executive Abdul Karim Bucheery.
'We are able to maintain the competitive edge in growing our assets base and customers' deposits,' he added.
'We attribute our good results to our flexible and diversified strategic plan which conforms to the changing operating environment, and to the confidence our valued customers have in the bank. The bank has launched an enhancement to the SMS mobile banking service, and added ATM machines at two new locations, during the first three months of the year,' he said. – TradeArabia News Service