BBK reports Q4, FY19 profit

TDT | Manama

BBK (BBKB.BH) reported a 6.4 per cent increase in its fourth-quarter net profit attributable to the owners of the bank to BD 19.9 million helped mainly by a decrease in net provision requirements. In the prior year quarter, net profit was BD 18.7m. BBK board recommended paying annual cash dividends of 40 fils per share (including 10 fils interim dividends that were declared and paid in July 2019) and stock dividends of 5pc per share equivalent to 5 share for every 100 shares for the shareholders registered with the bank on the date of the Ordinary General Assembly “AGM”. Earnings per share was 16 fils, compared to 14 fils in the year ago quarter.

Total comprehensive income attributable to owners of the bank stood at BD 44.2m compared to BD 2.7m last year. The increase in the comprehensive income resulted from the higher net profit achieved from a core operating performance, as well as the positive valuation of investment securities compared to last year due to the outstanding performance of various financial markets and increase in valuations of investment securities globally. Full year 2019 net profit attributable to the owners of the bank was BD 75.4m compared to BD 67.1m in the previous year, registering a growth of 12.4pc. Earnings per share was 59 fils, compared to 52 fils in the previous year. BBK attributed the increase in the 2019 net profit mainly to the decrease in net provisions requirements by 46.5pc to BD 18.9m (BD 35.3m during 2018) as a result of active management of distressed exposures and higher recovery efforts. Total comprehensive income attributable to owners of the bank amounted to BD 109.3m compared to BD 47.4m reported in the previous year, representing an increase of 130.6pc, mainly driven by the increase in profits from operating activities, as well as the significant increase in valuation of investment securities. Investment securities portfolio registered an increase of 9.3pc to stand at BD 875.0m compared to BD 800.3m as end of December 2018.

Net loans and advances stood at BD 1,670.9m compared to BD 1,772.5m, a decrease of 5.7pc. Customer deposits portfolio stood at BD 2,169.5m compared to BD 2,374.5m, registering a decrease of 8.6pc. Loans to customer deposits ratio stood at 77.0pc compared to 74.6pc reported at the yearend of 2018. Total operating income stood at BD 151.5m; lower by 3.5pc from BD 157.0m reported at end of 2018 due to lower interest and non-interest income, and higher operating expenses by 9.5pc mainly due to investments in improving delivery channels, implementation of new strategic and business initiatives and VAT implementation during the year. Reyadh Sater, BBK’s Group Chief Executive added “BBK is proud to announce another year of record results, thus maintaining our commitment towards increasing profitability and building shareholder value. Notable progress was made in implementing digital innovation in line with the Kingdom of Bahrain’s adoption of FinTech based technological advancements.”