*** BBK Q1 profit rises 5.9 pc to BD 16.7m | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

BBK Q1 profit rises 5.9 pc to BD 16.7m

Manama : BBK yesterday reported a net profit attributable to owners of BD16.7 million for the first quarter of 2018 compared to BD15.8m for the similar period of the previous year, representing a 5.9 per cent growth. 

Reyadh Yousif Sater, BBK’s Chief Executive commented on the Bank’s performance, “The Bank’s continuing efforts to gain market share leads to another quarter of good financial results through the delivery of pioneering ideas and services in the country.”  

Operating revenues for the three months ending March 2018 increased by 10.1pc to reach BD39.2m compared to BD35.6m during the same period of 2017, primarily driven by increase in net interest income due to the growth in the loan portfolio. 

Other income grew by 10.9pc compared to last year, which was mainly due to higher realized gain on the sale of investments securities. BBK’s share of profit of associated companies and joint ventures was higher by BD 0.4m to stand at BD1.6m.  BBK’s operating costs increased by 7.4pc reaching BD14.1mcompared to BD13.2m reported during the same period last year. Despite the increase in the cost, the cost to income ratio showed an improvement from 37.0pc to 36.1pc reflecting the Bank’s ability to achieve healthy growth in its revenue streams, while continuing its strategy to invest in human resources, networks, and technology.  

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As part of the IFRS 9, the expected credit losses provisioning requirements and the Bank’s policies to remain prudent, BBK increased its net provision reserves by BD8.1m during the first quarter of 2018 (2017: BD 6.3m). 

Total comprehensive income attributable to owners for the first quarter of 2018 stood at BD11.6m compared to BD29.1m recorded for the same period of 2017, on account of reflecting the  revaluation adverse movement in the market prices of some investments securities.

Net loans and advances continued to grow, achieving an increase of 3.4pc to BD1,799.1m (December 2017: BD 1,740.7m).