BBK's net profit rises 18pc to $83m
Manama, October 22, 2012
Bank of Bahrain and Kuwait (BBK) said its net profit for the first nine months rose 18.2 per cent from the same period last year to BD32.1 million ($83.4 million).
"BBK's fundamental strengths, along with its clear strategic vision, robust risk management practices and sustainable financial performance underpins the bank's ability to generate solid performance and consistent growth despite the challenging operating environment," said BBK chairman Murad Ali Murad.
"The main contributors to such improvement in the underlying profitability were the robust growth in net interest income, coupled with healthy increase in other incomes."
Net interest income grew by 11.4 per cent to amount to BD48.4 million, compared with the same period last year.
The improvement in net interest income was a result of the increase in the bank's net loans and advances and non-trading investment portfolios.
The bank's fees and commission income also registered a growth of 11.1 per cent amounting to BD21.7 million.
Foreign exchange and investment income reported a steady income of BD9.5 million. The cost to income ratio was improved from 49.3 per cent to 46.8 per cent.
Net profit for the third quarter stood at BD8.8 million, compared with BD4 million which was reported in the same period last year.
"The bank's core profitability is on an upward positive trend along with improved cost efficiency, and business volumes are showing signs of improvement across the region," said chief executive Abdulkarim Bucheery.
"BBK continues to commit itself to apply modern, transparent and effective governance principles with its customers, employees, shareholders and general public," Bucheery said.
"We are very proud that BBK was able to maintain high levels of commitment on that aspect and to receive the honourable "Hawkamah Bank Corporate Governance Award" for the past three years consecutively."
BBK's balance sheet grew to BD2.981 billion, an increase of 9.1 per cent from a year ago.
This has reflected a strong underlying business growth driven by increases in customer assets and deposits.
Loans and advances stood at BD1.464 billion, registering an increase of 5.4 per cent, mainly due to increase in retail and corporate loans.
Non-trading investment assets have witnessed a rapid growth of 42.9 per cent to reach BD723 million.
During the year BBK has managed to keep liquidity parameters at a very comfortable level with loans to deposits ratio standing at 61 per cent.-TradeArabia News Service
More Finance & Capital Market Stories
- ADS Securities inks deal with Tunes Group
- EMP expands Iraq card operations
- Dubai ICD planning to boost $2bn loan
- CEO-elect of fraud-hit Rakbank quits
- Saudi foreign assets hit record $668.2bn
- Major trade success for BBK Brokerage
- NBAD raises convertible bond issue to $465m
- Mashreq to enhance mobile banking app
- NBK Capital exits Turkey hospital chain
- Abu Dhabi holding firm Senaat plans share sale