BBK yielded strong results with net profit rising to BD39.15 million in 2010, an increase of 11.80% growth over the last year.
The bank’s board of directors which met on Sunday reviewed and approved the financials for the year ended 31 December 2010. The net profit for the fourth quarter of 2010 stood at BD7.9 million compared to BD 10 million for the same period last year.
“I am very pleased to report that BBK achieved a record net profit of BD 39.15 million in 2010 with return on equity of 16.90 per cent compared to 16.38 per cent in 2009,” said Murad Ali Murad, the Chairman of the board of directors.
Total assets at the end of the year grew by 7.38% to reach BD 2.447 billion compared to BD 2.279 billion in 2009. The board has recommended a cash dividend of 25 fils per share.
The income from fees and commission rose by 14.6 per cent reaching BD25.27 million. Investment income also has grown from BD9.2 million in December 2009, to BD 27.85 million, which also included non-recurring gain on sale of non-trading investment in Kuwait during the first quarter of 2010. Net interest income on the other hand, stood at BD55.96 million, which included gain on partial redemption of medium term loan of BD 2.22 million (2009: BD 7.69 million).
“During 2010 we began implementing the various initiatives as been outlined in our Corporate Strategic Plan for 2010-2012. We have been able to get off to a strong start and the fact that BBK achieved a new record net profit gives us considerable satisfaction” said Abdulkarim Bucheery, Chief Executive of BBK.
“We have re-focused our efforts squarely on local and regional business. A number of initiatives which started in 2009 were completed during 2010 and the benefits of these are now being realized. There has been strong growth in our customer deposit base, particularly on the retail and local corporate sides of the business. On the corporate side we have been able to increase market share, helped by the launch of our new cash management platform,” he added.
BBK balance sheet grew by BD168 million to reach BD2.447 billion as of end of December 2010. Customer deposits grew from BD1.517 billion to BD1.594 billion, reflecting customers’ confidence in the bank. This helped improving the liquidity of the bank as can be witnessed from the improved loan to deposit ratio of 71 per cent (2009: 72 per cent), and liquid assets (including cash, balances with central banks, treasury bills, and deposits with banks and financial institutions) to total assets of 27 per cent (2009: 25.7 per cent). Non-trading investments has grown by 19.1 per cent to reach BD425.4 million, in line with bank’s strategic plan, making a solid contribution to the bank income in 2010. Loans portfolio marginally grew from BD1.269 billion to BD1.276 billion with a more focus on quality lending opportunities available in the market. Capital adequacy also stood comfortably well above the regulatory requirement at 18.57%, compared to 17.51% as of end of 2009.
“As 2010 proved, BBK is following the right path for success amid all the difficulties and challenges in the market. With the success achieved in 2010, we will be looking for even more ambitious targets in 2011, and I am sure that the well balanced strategy developed by BBK, will help us achieve that objective,” the Chairman added.