BBK posts BD34.8 million profit in first half

Manama : Bank of Bahrain and Kuwait (BBK) reported a net profit attributable to the owners of BD34.8 million for the half year ended June 30, 2018, compared to BD32.2m in the previous year, an increase of 8.1 per cent. Earnings per share were 29 fils compared to 27 fils last year. The increase was attributed by the bank to a 14.9pc increase in net interest income driven by increase in loans and investment portfolio, as well as improvements in margins.

Other income rose 13.7pc helped by higher investment income resulting from dividend income from equity investments. This was partially offset by the increase in net provisioning requirements of BD15.2m at the end of June 2018 (BD10.8m in last year) mandated by IFRS 9, as well as the increase in operating costs by 6.3pc to BD28.3m compared to BD26.7m at the end of June last year. 

Operating profit (excluding net provisions and tax) during the year was BD50.6m, compared to BD43.7m of last year, an increase of 15.8pc. Operating revenue increased 12.2pc to BD79.0m from BD70.3m a year ago. Net loans and advances grew 4.8pc year-to-date to reach BD1,824.5m, while Investment securities portfolio increased by 2.0pc to stand at BD 764.1m from that at the end of December 2017.  Customer deposit stood at BD2,559.7m compared to BD2,623.6m, while the loan to customer deposits ratio stood at a 71.3pc compared to 66.3pc reported at the year-end of 2017.

 Total comprehensive income attributable to owners amounted to BD16.5m for the first half of 2018; compared to BD40.4m reported in the corresponding period of last year, representing a drop of 59.1pc.