BBK 9-month net profit surges 7.7pc
Manama, October 29, 2013
Leading Bahrain bank BBK has registered a BD34.5 million ($91.5 million) net profit for the first nine months, up 7.7 per cent compared to BD32.1 million for the same period last year.
The growth in net profit was driven by higher net interest income and a continued growth in foreign exchange and investment income, reported the Gulf Daily News, our sister publication, citing top bank officials.
The earnings per share for the period were 37 fils, as against 35 fils for the year ago period.
"Diversification of income sources continues to differentiate BBK and helped us in maintaining our competitive position in the market," stated BBK chairman Murad Ali Murad.
He added that the bank exceeded targets despite uncertainty in some international markets. "Core business contribution remains resilient and BBK will continue to maintain and enhance its competitive edge in the market," he noted.
The net interest income grew 6.3 per cent to BD51.5 million as of end-September when compared with the corresponding period last year.
Foreign exchange and investment income grew 42.4 per cent to BD13.5 million for the third quarter, when compared with BD9.5 million last year.
Operating expense increased to BD39.3 million from BD37.3 million last year, with cost to income ratio at 46.8 per cent as of September this year.
Total provision reserve requirements amounted to BD9.6 million for the nine months, of which BD6.8 million was assigned to general provision reserves, to account for potential unexpected events and economic turbulences.
"Progress in managing business risk and implementation of strategic initiatives were reflected in the solid performance," chief executive A Karim Bucheery said.
"The bank was able to balance volume growth and healthy business margins while core businesses continued to deliver steady returns."
He added that the execution of long-term strategic directions combined with efficiency enhancement and innovations have ensured the bank is well positioned in the market.
"We are still pursuing our expansion plans in India and we are thrilled that the Reserve Bank of India has granted us a licence to operate a branch in New Delhi, which will be the fourth in the country," stated Bucheery.
For the third quarter, BBK's net profit increased 6.4 per cent to BD9.3 million compared with BD8.8 million for the corresponding period last year.
Net interest income for the quarter was BD16.9 million, while other income including fees and commission income, foreign exchange and investment income reached BD10.6 million.
The bank set aside total provision reserve for the quarter of BD3.4 million, of which BD2.7 million was for general provision reserves, as against BD7.3m for the same period last year.
BBK's balance sheet witnessed a growth of 11 per cent and reached BD3.29 billion as of end-September.-TradeArabia News Service