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BBK's net profit surges 6.4pc

Manama, February 4, 2014

Bahrain-based lender BBK has reported a 6.4 per cent growth in its net profit for 2013 which hit BD45.1 million ($119.6 million)  compared to BD42.4 million the year before.

The bank's net interest income grew 4.7 per cent to BD68.9 million compared with BD65.8 million in 2012. Its earnings per share for the period were 49 fils, as against 46 fils per share in 2012, reported the Gulf Daily News, our sister publication.

The bank's foreign exchange and investment income increased by 24.7 per cent to BD17.4 million from BD13.9 million.

Fees and commission income was BD26.2 million, as against BD27.5 million earlier, it stated.

"We have developed our business across diverse revenue streams, further expanded our overseas endeavours and successfully implemented an organisation-wide restructuring programme while maintaining a high level of profitability and growth," remarked chairman Murad Ali Murad.

Comprehensive income for the year was BD52 million, while the operating costs grew by 10.7 per cent to BD54.4 million compared with BD49.1 million in the corresponding period of last year.

The increase in operating costs was mainly driven by one-off costs incurred as part of the organisational restructuring and early retirement plans which was implemented during the year.

Provision requirements were reduced from BD15 million in 2012 to BD12.1 million last year, despite the fact that the general provisions reserve was increased during the year in line with a conservative approach.

The board of directors have recommended a profit distribution of 20 per cent, comprising 10 per cent cash dividend per share, and 10 per cent stock dividend per share, with earnings per share of 49 fils.

For the three months ended December 31 last year, BBK's net profit was BD10.6 million, as against BD10.3 million for the same period of 2012. Net interest income for the quarter was BD17.4 million, unchanged from the corresponding previous quarter.

Other income including fees and commission, foreign exchange and investment income was BD10.9 million, as against BD10.3 million earlier.

Operating costs stood at BD15.1 million, and the bank reported provision charges net of recoveries of BD2.5 million for the quarter, compared with BD5.3 million reported in similar period of the previous year.

"The numbers speak for themselves, but we are particularly pleased to have achieved these results in a year that saw us making important structural changes while fulfilling challenging commitments laid out in our strategic plan," chief executive A Karim Bucheery said.

"This year BBK will build on the success by continuing to increase and diversify business activities across Bahrain, in the GCC region and select international markets," he added.

The bank's balance sheet for the year increased by four per cent to BD3.2 billion compared to BD3.10 billion as of December 2012.

The net loans and advances grew eight per cent to BD1.61 billion in 2013 compared to BD1.49 billion the year before, while customer deposits grew 6.7 per cent to BD2.35 billion compared to BD2.2 billion in December 2012.

The non-trading investment portfolio increased to BD744 million compared to BD717 million in the corresponding previous period.

The loans to deposits ratio was 63.9 per cent compared to 60.9 per cent in 2012, and capital adequacy ratio remaining well above the regulatory requirement.-TradeArabia News Service




Tags: Bahrain | BBK |

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