BBK net profit rises 7.8pc to $72.1m
Manama, July 22, 2014
Bank of Bahrain and Kuwait (BBK) has reported a growth of 7.8 per cent in net profit at BD27.2 million ($72.14 million) for the six months ended June 30, when compared with BD25.2 million for the corresponding period last year.
Earnings per share for the period are 27 fils as against 25 fils for the same period a year ago, said a report in the Gulf Daily News (GDN), our sister publication.
The financials have been approved by the bank's board.
"Our financial results are a testament to the strength of our business model, and the steady and sustained improvements in our, profitability and efficiency," chairman Murad Ali Murad said.
"We are hopeful that the rest of the year will see further consolidation on positive momentum built up last year," he added.
Business volumes grew in line with plans, resulting in improved revenues generated from core business activities.
Fees and commission income grew 9.8 per cent to BD13.7 million from BD12.4 million in the same period last year.
Net interest income was BD34.8 million as against BD34.6 million last year, whereas foreign exchange and investments income amounted to BD9.2 million as against BD9.6 million earlier.
The bank has increased its provisions reserve, chiefly general provisions to BD7 million compared with BD6.5 million for the six months ended June to account for any potential volatility that may occur as a result of market and economic turbulences.
Comprehensive income grew from BD15.6 million in June last year to BD41.6 million in June, mainly driven by improvement in the fair value of the bank's available for sale investment portfolio.
The bank reduced operating costs by 5.7 per cent to BD23.4 million, while it continued to invest in technology and talent.
Improved revenues, combined with lower operating cost resulted in an improved cost to income ratio of 43.8 per cent as of June last year to 40.5 per cent as of June this year.
For the three months ended June 30, net profit grew 8.6 per cent to BD13.2 million when compared with BD12.1 million for the same period last year.
Net interest income was BD17.7 million as against BD17.6 million earlier, while other income, including fees and commission, foreign exchange and investment income recorded growth of 13.4 per cent to BD11.3 million.
Provision requirements for the second quarter were BD4.1 million, as against BD3 million earlier, mainly on account of increasing the general provisions reserve.
"BBK continues to flourish and enhance shareholders' value by delivering steady and robust results, backed by adequate and conservative risk management practices," chief executive Abdulkarim Bucheery said.
The balance sheet saw a growth of 3.5 per cent to BD3,323 million as of end-June when compared with BD3,211 million reported in the corresponding period last year.
This was mainly driven by growth in net loans and advances portfolio by 12.3 per cent to BD1,740 million from BD1,550 million earlier and increase in non-trading investment securities portfolio by 5.3 per cent to BD762 million for the first half this year from BD724 million for the same period last year.
Customer deposits increased by 5.1 per cent to BD2,392 million when compared with BD2,276 million earlier.
Liquidity continued to remain at comfortable levels with liquid assets (cash and balances with central banks, treasury bills, financial assets at fair value through statement of income, and deposits and due from banks and other financial institutions) to total assets standing at 20.7 per cent, and loan to total deposit ratio at 67.1 per cent.
Capital adequacy ratio remains well above regulatory requirements. - TradeArabia News Service
