BBK net profit increases 7.4pc

Manama : BBK yesterday announced financial results for the nine months ended 30th September 2016, reporting a net profit attributable to the owners of the bank of BD43.2 million. This is an increase of 7.4 per cent when compared to the BD40.3m profit reported during the corresponding period of 2015.

The increase in the bottom line was attributed to the solid growth in operating revenues by BD11.5m, a 12.8pc to reach BD100.9m, compared to BD89.4m during the same period of 2015. The main contributor was the growth in net interest income by 24.2pc, helped by active balance sheet management and restructuring of the assets base. 

The bank’s share of income from its associates rose to BD3.7m (September 2015: BD3.0m), representing a 24.5pc year-on-year growth. Other income (fees and commission, foreign exchange and investment income) amounted to BD31.8m, compared to BD33.8m for the nine months ending September 2015. 

Operating expenses increased by 5.3pc due to continuous investment in human capital, enhancement of operations and distribution networks, as well as the investment in the bank’s strategic initiatives for the current strategic cycle. 

Net provision for impairments including general reserves was increased by BD18.4m (2015: BD 14.3m). 

The bank’s total comprehensive income attributable to the bank’s owners improved from BD8.6m as of 30th September 2015 to BD38.0m as of  30th September 2016. 

For the three months ended on 30th September 2016, the bank achieved a net profit of BD11.9m, compared to BD10.9m reported during the same period of 2015, an increase of 9.9pc. The improvement was mainly due to the increase in net interest income by 25.7pc from BD17.7m to BD22.2m during the aforementioned period. Operating costs stood at BD12.7m and were slightly higher by 2.3pc compared to the same period of 2015. The net provisioning requirements amounted to BD9.2m compared to BD8.2m during the third quarter of last year.

Commenting on the results, Chief Executive, Reyadh Sater said, “During the year, the bank has achieved some of its strategic initiatives developed for the current strategic cycle, the major of which was the establishment of the bank’s representative office in Turkey. We expect other major milestones to be achieved in the coming period, which will be announced in due course.”

BBK’s balance sheet stood at BD3.656 billion as of end of September 2016 (December 2015: BD3.646bn). The loans portfolio stood at BD1.755bn (December 2015: BD1.765bn), as the bank continues its strategy to restructure its balance sheet towards higher yielding assets. 

Customer deposits stood at BD2.557bn compared to BD2.643bn as of end of December 2015, with very comfortable loans to customer deposits ratio of 68.6pc (December 2015: 66.8pc). Total banks’s equity as of end of September 2016 was standing at BD460.0m, 27.5pc higher year-to-date.