BBK net profit rises on interest income growth

BBK yesterday announced its financial results for the nine months ended 30 September 2018, reporting a 7.9 per cent increase in net profit attributable to the owners of the bank helped mainly by high net interest income driven by an increase in loans and investment portfolio Net profit attributable to the owners of the bank was BD48.4 million, compared to BD44.9m reported in the same period a year ago. Basic Earnings per share were 42 fils compared to 38 fils in last year.

Attributing the growth to increase in net interest income, the bank said its net interest income grew by 18.5pc to stand at BD80.1m. Improvements in margins resulting from an increase in global interest rates as well as dynamic and effective assets and liabilities management also contributed. Operating profit (excluding net provisions and tax) increased 11.2pc to BD75.6 million, while Operating revenue rose 10.6pc to BD119.0m when compared to the same period last year.

Net loans and advances rose 6.2pc in 2018 to reach BD1,848.1m as Customer deposit portfolio stood at BD 2,398.5m compared to BD2,623.6m from a year ago. Loans to customer deposits (excluding banks’ deposits) ratio stood at 77.1pc compared to 66.3pc reported at the year-end of 2017. The Investment securities portfolio increased by 3.2pc to stand at BD773.3m from the year-ago period.

Total comprehensive income attributable to owners of the bank for the nine months ended 30th September 2018 amounted to BD44.6m compared to BD51.6m during the corresponding period last year. Other comprehensive income was negatively impacted by negative revaluation on investment securities that resulted from the volatility of local, regional and global financial markets.

For the third quarter, net profit attributable to the owners of the bank was BD13.6m, compared to BD12.7m during the third quarter of the previous year, with an increase of 7.3pc. Basic Earnings per share during the third quarter were 13 fils compared to 12 fils in the third quarter of last year. The increase was attributed to the robust increase in net interest income by 25.2pc to stand at BD28.9m; driven by the improvements in margins resulting from an increase in the global interest rates. On the other hand, operating costs were higher by 16.3pc.

Total comprehensive income attributable to the owners of the bank during the third quarter of the current year stood at BD28.1m compared to BD11.2m last year, an increase of 151.1pc. This was fueled mainly by unrealized valuation gains on investment securities resulting from general financial markets movements. Reyadh Sater, BBK’s CE also commented on the results saying “BBK continues to achieve strong results, increasing profits and improving shareholders’ value as part of its ongoing dedication to success.”