BBK reports Q3, nine-month profits

TDT | Manama    

The Daily Tribune – www.newsofbahrain.com

BBK announced financial results for the period ended 30th September 2023, reporting an increase in third quarter and nine-month profits from a year ago.

Q3 results

Net profit attributable to the owners of the Bank was BD 19.5 million compared to BD 14.0 m in the same period last year, an increase of 39.3%.

Earnings per share amounted to 11 fils compared to 8 fils achieved during the corresponding period last year.

The total comprehensive income attributable to the owners of the Bank grew to BD 23.7m from BD 12.3m in the third quarter a year ago, representing an increase of 92.7%.

The increase is due to the positive movement in the valuation of investment securities and higher profits.

The increase in net profit was mainly attributable to higher net interest income which increased by 27.1% from BD 26.2m during the third quarter of 2022 to BD 33.3m during the third quarter of the current year due to effective balance sheet management and the interest rate exposure position.

In addition, net fees and commission income increased by 2.3% from BD 4.4m to BD 4.5m, investment and other income increased by around 12.1% from BD 3.3m to BD 3.7m, while net provisions in the quarter reduced by 55.9% from BD 3.4m to BD 1.5m compared to the same period of last year.

On the other hand, the Bank’s share from associated companies and joint ventures during the quarter amounted to a loss of BD 2.7m compared to BD 0.4m profit in the corresponding period of last year.

Total operating expenses increased by 6.7% from BD 16.4m to BD 17.5m attributed to strategic initiatives, enhancement of current distribution channels and services, and investing in human capital.

Nine-month results

The Bank achieved a net profit attributable to the owners of the Bank of BD 56.5m compared to BD 44.5m in the same period last year, representing an increase of 27.0%.

Earnings per share amounted to 33 fils for the current period compared to 26 fils during the same period of last year.

The higher net profit reflects the increase in net interest income by 45.1% from BD 68.8m to BD 99.8m, as a result of balance sheet optimization initiatives and the interest rate exposure position.

Net fees and commission income registered a decline of 25.2% decreasing from BD 13.5m to BD 10.1m, and investment and other income decreased by 8.3% from BD 12.1m to BD 11.1m.

Moreover, net provision increased from BD 5.0m to BD 7.5m during the nine months period ended 30th September 2023 representing an increase of 50.0%.

Conversely, the Bank’s share of associated companies and joint ventures decreased to a share of loss of BD 5.8m, compared to a gain of BD 3.2m during the corresponding period last year.

While total operating expenses increased by 7.0% from BD 47.2m in 2022 to BD 50.5m in 2023.

BBK’s Group Chief Executive, Dr. AbdulRahman Saif, said, “Despite market uncertainties, our optimism prevails, anchored in government policies and our unwavering commitment to balanced growth, ensuring sustained value creation for all stakeholders”.