BBK quarterly, H1 profits rise

TDT | Manama                                                       

The Daily Tribune – www.newsofbahrain.com

BBK posted profits that rose in its second quarter and half year 2022 yesterday, thanks to higher share of profit from associated companies and joint ventures, net interest income and net fees and commission income.

Q2 results

Net profit attributable to the owners rose 12.3% to BD 15.5 million from BD 13.8 m in the same quarter of last year. Earnings per share amounted to 9 fils compared to 8 fils in the year-ago quarter.

BBK attributed the increase in net profit mainly to higher net interest income. Net interest income increased 9.3% to BD 22.3 m, while net fees and commission income jumped 23.1% to BD 4.8 m from the year-ago quarter.

Total operating expenses increased by 6.3% to BD 15.2 m, while total comprehensive income attributable to the owners dropped from BD 22.4 m in the prior-year quarter to a loss of BD 10.9 m in Q2 2022, hurt by reduced market prices of investment securities.

H1 Results

Net profit attributable to the owners rose 8.9% to BD 30.6 m from BD 28.1 m in the year-ago period. Earnings per share amounted to 19 fils compared to 17 fils during the same period of last year.

Boosting the net profit was higher share of profit from associated companies and joint ventures, which amounted to BD 2.8 m, compared to a loss of BD 0.7 m during the corresponding period of last year.

Net fees and commission income grew 21.3% to BD 9.1 m from a year ago. Total comprehensive income attributable to the owners of the bank dropped 56.8% to BD 17.6 m from a year ago, hurt by a drop in the valuation of investment securities due to general market volatility.

Net interest income increased 3.1% to BD 42.6 m, benefiting from interest rate rise and balance sheet optimization initiatives, as investment and other income dropped 11.2% to BD 8.7 m. Total operating expenses rose 5.5% from BD 29.1 m to BD 30.7 m this year, mainly due to continued investment in human capital, 50th anniversary initiatives, and various strategic and business initiatives.

Net provisions and credit losses increased to BD 1.5 m from BD 0.4 m in the year-ago period, mainly due to precautionary provisions. Customer deposits registered a marginal growth of 0.7% to stand at BD 2,141.5 m (31 December 2021: BD 2,125.6 mn), while the loans to customer deposits ratio remained at 76.6% (31 December 2021: 75.6%).

The Board of Directors said, “Despite the challenging and uncertain operating environment, we remain optimistic and confident in BBK’s ability and the strength and flexibility of its business model to continue achieving a steady performance, enhancing our shareholders’ values and contributing to the betterment of the societies in which we operate”.

Looking ahead, Dr AbdulRahman Saif, BBK’s Group Chief Executive, said he is optimistic, despite facing "uncertainties and high risks posed by the rapid changes in market interest rates, financial markets volatility, inflationary pressures and the continued COVID-19 pandemic and supply chain strains."

“We have full trust in the sound economic management by our government, and we are confident that with our solid fundamentals and approach towards sustainable and balanced growth, we will continue to create attractive value for our shareholders and all other stake holders.”