KHCB net profit surges 109.8pc

Khaleeji Commercial Bank (KHCB) yesterday announced its financial results for the year ended 31 December 2015 recording net profit of BD8 million compared to BD3.8m reported in 2014. The board also recommended a distribution of 5 per cent bonus shares (subject to AGM and regulatory prior approvals).

Besides, the bank has allocated sufficient provisions this year as a precautionary measure against any possible effects on the bank’s operations due to current economic instability in the markets and to maintain a strong capital position.  

KHCB recorded a net profit of BD1.9m in the fourth quarter of 2015 compared to a net profit of BD1m in the earlier quarter. Total assets also grew to BD654m, increased by 9.6pc compared to 2014. Return on average assets reached 1.3pc.

The bank said it sustained its profitability and strengthened financial position with a liquid assets ratio in excess of 22.5pc and capital adequacy ratio of 18.8pc.

Commenting on the results, Dr. Ahmad Al Mutawa, Chairman of the Khaleeji Commercial  Bank said: “We are very pleased with the strong results achieved in 2015, despite the significant economic variations and geopolitical developments coupled with the sharp drop in the oil prices, which have affected the economic growth potential.

Khalil Ismaeel Al Meer, KHCB’s Chief Executive Officer said: “The key performance figures show a growth of 9.6pc in total assets from BD597m in 2014 to BD654m in 2015. The total net income increased by 38.6pc reaching BD21.3m compared with BD15.4m achieved in year 2014. The net income increased by 109.8pc to reach BD8m compared with BD3.8m recorded in 2014.

Total financing assets have grown-up by 14.2pc reaching BD388m, compared to BD340m reported in 2014. Total customer deposits have also increased by 12.8pc from BD430m in 2014 to BD485m in 2015; this is in spite of the fact that we have reduced the weighted average profit sharing rate distributed to the depositors.

Looking ahead, KHCB said it would remain focused on the local market by offering innovative products and services to customers, enhance processes to speed up the turn-around-time and will further ease reach to the bank by deploying new electronic channels.