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BBK's net profit surges 6.4pc to $119.6 million

February 5, 2014

MANAMA : BBK yesterday reported a growth of 6.4 per cent in net profit at BD45.1 million ( $119.6m ) for last year, compared with BD42.4m for 2012. The bank's earnings per share for the period were 49 fils, as against 46 fils per share in 2012. "We have developed our business across diverse revenue streams, further expanded our overseas endeavours and successfully implemented an organisation-wide restructuring programme while maintaining a high level of profitability and growth," chairman Murad Ali Murad said. Net interest income grew 4.7pc to BD68.9m compared with BD65.8m in 2012. The bank's foreign exchange and investment income increased by 24.7pc to BD17.4m from BD13.9m. Fees and commission income was BD26.2m, as against BD27.5m earlier. Comprehensive income for the year was BD52m. Operating costs grew by 10.7pc to BD54.4m compared with BD49.1m in the corresponding period of last year. The increase in operating costs was mainly driven by one-off costs incurred as part of the organisational restructuring and early retirement plans which was implemented during the year. Provision requirements were reduced from BD15m in 2012 to BD12.1m last year, despite the fact that the general provisions reserve was increased during the year in line with a conservative approach. The board of directors have recommended a profit distribution of 20pc, comprising 10pc cash dividend per share, and 10pc stock dividend per share, with earnings per share of 49 fils. For the three months ended December 31 last year, BBK's net profit was BD10.6m, as against BD10.3m for the same period of 2012. Net interest income for the quarter was BD17.4m, unchanged from the corresponding previous quarter. Other income including fees and commission, foreign exchange and investment income was BD10.9m, as against BD10.3m earlier. Operating costs stood at BD15.1m, and the bank reported provision charges net of recoveries of BD2.5m for the quarter, compared with BD5.3m reported in similar period of the previous year. "The numbers speak for themselves, but we are particularly pleased to have achieved these results in a year that saw us making important structural changes while fulfilling challenging commitments laid out in our strategic plan," chief executive A Karim Bucheery said. "This year BBK will build on the success by continuing to increase and diversify business activities across Bahrain , in the GCC region and select international markets," he added. The bank's balance sheet for the year increased by 4pc to BD3,231m, compared with BD3,108m as of December 2012 . Net loans and advances grew 8pc to BD1,619m (2012: BD1,499m), while customer deposits grew 6.7pc to BD2,353m, compared with BD2,205m in December 2012 . Non-trading investment portfolio increased to BD744m compared with BD717m in the corresponding previous period. Loans to deposits ratio was 63.9pc compared to 60.9pc in 2012, and capital adequacy ratio remaining well above the regulatory requirement.

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Source: Gulf Daily News (Bahrain)

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