BBK posts BD53.1 million profit

TDT | Manama

The Daily Tribune – www.newsofbahrain.com

BBK announced financial results for the year ended 31st December 2021, reporting profits for its fourth quarter and full-year 2021.

Recommends Dividend

Based on this, the Board of Directors recommended paying cash dividends of 20 fils per share and stock dividends of 10% per share equivalent to 1 share for every 10 shares for the shareholders registered with the Bank on the record date.

Q4 results

Net profit attributable to the owners of the Bank was BD 12.6 million, lower by 3.2% compared to the same period of last year at BD 13.0 m.

Earnings per share amounted to 8 fils compared to 9 fils reported last year. The decrease in net profit is attributed to higher net provisions, which stood at BD 0.8 m, compared to net recoveries of BD 1.2 m during the corresponding period of last year, lower fees and commission income by 19.4% to BD 5.0 m (BD 6.2 m last year), lower net interest income by 1.9% to BD 20.1 m (BD 20.5 m last year), lower investment and other income by 11.1% to BD 2.4 m (BD 2.7 m last year), and higher operating expenses by 2.0% to reach BD 15.4 m (BD 15.1 m last year) as a result of continuous investment in strategic initiatives. On the other hand, the Group’s share of profit from associated companies and joint ventures compensated the performance by BD 1.4 m (loss of BD 2.3 m last year).

Total comprehensive income attributable to the owners of the Bank amounted to BD 11.9 m, compared to BD 56.6 m during the same period of last year, representing a decrease of 79.0% hurt by a decrease in valuation of investment securities during the final quarter of 2021.

Full-year results

Net profit attributable to the owners of the Bank was BD 53.1 m compared to BD 52.0 m reported in the year 2020, an increase of 2.1%.

Earnings per share amounted to 36 fils compared to 35 fils during the previous year. The growth in net profit attributable to the owners of the Bank for the full year was supported by lower net provisioning by 48.2% to stand at BD 2.9 m (BD 5.6 m last year) due to higher remedial efforts and active management of distressed exposures

Moreover, the net interest income increased by 2.2% to stand at BD 82.6 m (BD 80.8 m last year) due to active balance sheet management. Profit from associated companies and joint ventures increased to BD 1.7 m compared to a loss of BD 0.1 m last year. This was partially offset by lower fees and commission income by 18.9% to stand at BD 15.9 m (BD 19.6 m last year), largely due to the impact of concessionary measures taken in response to COVID-19 to support the domestic business community and the impact of new regulatory caps on fees and charges. In addition, the investment and other income decreased by 6.6% to BD 17.1 m (BD 18.3 m in the previous year).

The operating cost was marginally higher by 0.2% at BD 60.8 m (BD 60.7 m last year) as the Bank continued to invest on the implementation of various strategic initiatives and enhancing its banking channels. Total comprehensive income attributable to the owners of the Bank amounted to BD 59.5 m compared to BD 28.9 m reported in 2020, a significant increase of 106%. Total customer deposits decreased by 1.9% to stand at BD 2,125.6 m (31 December 2020: BD 2,167.4 m).

Looking ahead, the Board of Directors said, “As we are celebrating our 50th year anniversary, the Board will look to secure sustainable growth by enhancing the Group’s resilience and efficiency, adapting to new challenges and protecting the Group’s capital position, while continuing to invest in our Environmental, Social and Governance (ESG) strategy to meet pressing community needs.” Dr AbdulRahman Saif, BBK’s Group Chief Executive, stated, “The strong results achieved by BBK reflects the Group’s resilience, solid business model, and exceptional ability to adapt to the dynamic environment and withstand the unprecedented challenges posed by the pandemic.

He added: “As we celebrate our 50th anniversary in the year 2022, we look forward to the future with optimism and we are confident in the Group’s ability to continue delivering attractive value to its shareholders, supporting its customers and employees, and contributing to the development and prosperity of the communities in which we conduct business”.