KHCB reports H1 net profit of BD4.22m

Manama : Khaleeji Commercial Bank (KHCB) yesterday announced net profit attributable to the owners of the bank amounting to BD4.22 million for the first half of 2016 as compared to BD4.12m in the same period last year, representing a growth of 2.4 per cent.

The bank’s profit attributable to the owners for the 3 months ended June 2016 was BD1.37m, compared to the profit of BD2.45m for the 3 months ended June 2015 resulting in a decrease of 44.1pc.

Total assets increased by 1.4pc reaching to BD663m boosted by the core banking and financing assets which rose by 13.8pc to BD441m. 

Total net income in the first half of 2016, amounted to BD12m compared to BD10.5m reported in the same period of the preceding year, signifying an increase of 14.2pc. 

Total net income reported for the 3 months ended June 2016 & June 2015 were BD5.98m & BD6.18m respectively representing a decrease of 3.2pc.  

The bank also said it was able to maintain a strong capital adequacy ratio of 19.3pc  even with the economic challenges encountered in the region. 

Commenting on the results, Dr. Ahmad Al Mutawa, Chairman of KHCB said, “Despite the bank’s high-quality assets, the Board and the Executive management has conducted a comprehensive review of the bank’s assets during this period to ensure that the assets reflect the actual fair value, in order to face the future uncertain changes in the market. Based on this evaluation, it has been agreed to record an additional impairment allowance of BD1.6m for the 6 months as a prudent measure against the drop in value of the assets.”

Khalil Al Meer, KHCB’s Chief Executive Officer commented on the results of the second quarter and said, “The first half of 2016 witnessed many strategic initiatives which embodied our determination to attain our goals, one of which was the expansion of our branch network with the launch of KHCB’s 11th branch in the Kingdom.”

Outstanding Performance

KHCB announced it  achieved excellent financial results during the first quarter of 2016 where the bank achieved net profit attributable to the owners of the bank of BD2.85m, with a growth of 70.7%, compared to the net profit of BD1.67m for the same period in 2015. 

In line with the outstanding results, the bank was awarded the “fastest-growing banks in the Kingdom of Bahrain” award granted by ‘CPI Financial, Banker Middle East’, one of the leading foundations specialised in financial news and money analysis in the region.