*** BBK 2022 profits increase on higher net interest income | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

BBK 2022 profits increase on higher net interest income

TDT | Manama                      

The Daily Tribune – www.newsofbahrain.com   

BBK yesterday posted their fourth quarter and full year 2022 results which surged from a year ago, helped by a robust growth in net interest income, which was partially offset by higher net provision.

Based on which, the Board of Directors recommended paying cash dividend of 25 fils per share and stock dividend of 5% per share equivalent to 5 shares for every 100 shares held for the year 2022.

The board also recommended an additional exceptional one-time cash dividend of 5 fils per share on the occasion of the celebration of BBK’s 50th anniversary for the shareholders.

Q4 results

Fourth quarter net profit attributable to the owners of the Bank was BD 19.9 million, 57.9% higher compared to the net profit of BD 12.6 m in the yearago quarter.

Earnings per share amounted to 12 fils compared to 8 fils during the previous year.

The bank attributed the increase in net profit to a robust growth in net interest income by 67.7% from BD 20.1 m reported during Q4 last year to BD 33.7 m during the same period of year 2022.

This was partially offset by higher net provision requirements (BD 3.0 m for the fourth quarter of current year, compared to BD 0.8 m during the same period of last year representing 275.0% increase).

Total comprehensive income attributable to the owners of the Bank amounted to BD 54.7 m, compared to BD 11.9 m during the same period of last year, representing a significant increase of 359.7%.

This was led by the positive movement in fair value reserve of investment securities by BD 32.8 m, compared to a drop in valuation of BD 2.4 m during the same period of last year, as well as higher reported net profit.

Full year results

Full year net profit attributable to the owners of the Bank was BD 64.4 m compared to BD 53.1 m achieved during the previous year, an increase of 21.3%.

Earnings per share amounted to 39 fils compared to 32 fils for the prior year.

The total comprehensive income attributable to the owners of the Bank amounted to BD 84.5 m, compared to BD 59.5 m reported during last year, an increase of 42.0%.

The increase is mainly related to positive market valuations, and higher net profit from core activities.

The increase in net profit was mainly attributable to increase in net interest income from BD 82.6 m achieved during last year to BD 102.5 m during the current year, an increase of 24.1%.

The increase in net interest income was mainly due to the interest rates hikes during the year as well as the active balance sheet management followed by the bank.

On the other hand, the net provision charges increased by 175.9% from BD 2.9 m to BD 8.0 m due to the Bank’s prudent risk management approach, and to strengthen the Bank’s financial resilience given the challenging economic environment.

In addition, operating expenses increased by 6.1% in 2022 to BD 64.5 m (last year: BD 60.8 m) due to BBK’s continuous investment in its human capital, and implementation of various strategic and business initiatives aimed at providing our customers with the best banking experience.

The Board of Directors expressed its satisfaction with the financial results stating “BBK’s strong performance during the year once again demonstrated the Group’s ability to withstand challenging economic cycles as well as its commitment to achieve the targets outlined in the new 2022-2024 strategy.

Dr AbdulRahman Saif, BBK’s Group Chief Executive stated “BBK’s impressive results in 2022 highlight the efficacy of our forward-looking strategy, conservative approach to risk management, and diversified portfolio.

The celebration of BBK’s 50th anniversary was a highlight of the year.

“We look forward to building on the momentum in 2023 as we continue our digital transformation journey, while working towards achieving all our 2022- 2024 strategy objectives”.

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