BBK (B.S.C.) (33YT) - 3rd Quarter Results
RNS Number : 2074P
22 October 2012
BBK reports a net profit of BD 32.1 million, up 18.2%, for the nine months
ended 30^th September 2012
BBK Board of Directors yesterday reviewed and approved the financial results
of the bank for the nine months ended 30^th September 2012. Mr. Murad Ali
Murad, Chairman of the Board of Directors, announced that the bank's net
profit for the period further improved to reach BD 32.1 million, an increase
of 18.2% when compared to the corresponding period of the previous year.
Expressing his satisfaction on the achieved results, Mr. Murad Ali Murad said
"BBK's fundamental strengths, along with its clear strategic vision, robust
risk management practices and sustainable financial performance underpins the
bank's ability to generate solid performance and consistent growth despite the
challenging operating environment".
The main contributors to such improvement in the underlying profitability were
the robust growth in net interest income, coupled with healthy increase in
other income. Net interest income grew remarkably by 11.4% to amount to BD
48.4 million, compared to the same period ended September 2011, which included
BD 0.5 million of gain on partial redemption of term borrowings (as at 30
September 2012: nil). The improvement in net interest income was a result of
the increase in the bank's net loans and advances and non-trading investments
portfolios. Further, this was a reflection of the successful strategic
implementation of re-compositioning of the bank's loans and investments
portfolios. The bank's fees and commission income also registered a growth of
11.1% amounting to BD 21.7 million. FX & Investment income reported a steady
income of BD 9.5 million. The bank's continuous investments in latest
technologies, distribution networks, and its human resources resulted in
increasing the operating cost by 4.1% compared to the period ended September
2011. Nevertheless, the cost to income ratio was improved from 49.3% to 46.8%.
Net profit for the three months ended September 2012 stood at BD 8.8 million
compared to BD 4.0 million which was reported in the three months ended
September 2011. Net interest income for the quarter of BD 17.0 million
increased by 16.7%, while other income, including fees and commission and FX
and investment income have grown by 18.7% to reach BD 11.4 million. The bank
reported BD 7.3 million as provision requirements for the third quarter of
2012, compared to BD 7.7 million compared to the same period of last year.
Mr. A.Karim Bucheery, Chief Executive; said "The bank's core profitability is
on an upward positive trend along-with improved cost efficiency, and business
volumes are showing signs of improvement across the region".
The bank has recently received the Hawkama Award for Corporate Governance. On
this, Mr. Bucheery commented "BBK continues to commit itself to apply modern,
transparent and effective governance principles with its customers, employees,
shareholders and general public. We are very proud that BBK was able to
maintain high levels of commitment on that aspect and to receive the honorable
"Hawkamah Bank Corporate Governance Award" for the past 3 years
Comprehensive income has increased by BD 41.1 million to reach BD 52.2 million
in September 2012; this was mainly driven by the improvement in the market
value of the non-trading investments and as a result of the bank strategy to
continuously improve the quality of its investment portfolio.
BBK's balance sheet grew remarkably to amount to BD 2,981 million, an increase
of 9.1% when compared to 30^th September 2011. This has reflected a strong
underlying business growth driven by increases in customer assets and
deposits. Loans and advances stood at BD 1,464 million, registering an
increase of 5.4%, resulted mainly from the increase in retail and corporate
loans. Non trading investment assets have witnessed a rapid growth of 42.9% to
reach BD 723 million as of 30^th September 2012.
During the year BBK has managed to keep liquidity parameters at a very
comfortable level with loans to deposits ratio standing at 61%.
BBK has been the pioneer in Commercial Banking for 40 years in the Kingdom of
Bahrain. As a revolutionary market leader, BBK has built a name and reputation
which is respected locally as well as internationally. To maintain this
reputation, BBK has been at the forefront, incorporating the latest
technologies to provide the finest services. One example of which is the
e-banking solutions offered by BBK, which provide new generation services
through its user friendly award winning website www.bbkonline.com, along with
the telebanking, cash depository machines and automated teller machines
services. BBK is proud to be honored for its Corporate Governance by the
"Hawkamah Institute" for the 3rd consecutive year. This award has become a
prestigious, competitive and highly coveted bank award that highlights the
industry's strong commitment to good corporate governance.
For Media Enquiries, you may contact:
BBK - Corporate Communications Officer
P.O. Box 597
Kingdom of Bahrain
website : www.bbkonline.com
This information is provided by RNS
The company news service from the London Stock Exchange
QRTUUSRRUVARUAA -0- Oct/22/2012 13:17 GMT
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