Overwhelming majority of 
The shareholders also gave a nod to the board to amend the article of association with regard to the capital base of the bank as put forward during the extra ordinary general assembly.
BBK had earlier announced a record profit of BD42.4 million for 2012, a 33.3 per cent up compared to BD31.8 million in 2011.
The shareholders also accorded an approval on the recommendation of board of directors for profit distribution of 20%, comprising of 10% cash dividend per share, and 10% stock dividend per share.
A.Karim Bucheery, Chief Executive, in his presentation during the AGM said that the bank had yielded a record profit in 2012, thanks to the board’s vision and executive management’s prudent approach during the year 2012.
For the year ended 31st December 2012, the bank reported a robust growth in net interest income of 11.6% to reach BD 65.8 million compared to BD 58.9 million reported in 2011. FX and investment income stood at BD 13.9 million compared to BD 20.6 million reported in the same period of last year. Nevertheless, 2011 FX and investment income included non-recurring income of BD 9.2 million that arose from the exchange of BBK subordinated debt notes to senior debt notes , and a gain on sale of sub-debt of BD 0.6 million. Excluding such non-recurring income, FX and investment income would have grown by 21.9%. Net Fees and Commission income grew by 10.3% to reach BD 29.0 million compared to BD 26.3 million reported in December 2011.
For the three months ended 31st December 2012, BBK reported a net profit of BD 10.3 million compared to BD 4.7 million for the same period of last year, with net interest income of BD 17.4 million an increase of 12.1% (2011: BD 15.5 million). Other income including fees and commission, FX and investment income stood at BD 11.7 million in December 2012. The bank reported provision charges net of recoveries of BD 5.3 million for the fourth quarter of 2012, compared to BD 15.8 million reported for the same period of last year.
BBK’s operating costs grew by 5.5% to reach BD50.6 million. Loans and investment provisions requirements has decreased from BD25.5 million to reach BD15 million in December 2012, reflecting management conservative approach and better quality control over assets.
“The 2012 was the final year of BBK’s 2010-2012 Strategic Plan. A number of strategic initiatives were implemented throughout 2012 which contributed in strengthening BBK’s relationship with its customers and enabled it to achieve these astonishing results. Those new initiatives included launch of the new premium banking service, Al Wajaha, which offers a bouquet of financial privileges and unrivalled package of features and benefits specially tailored to meet the banking, travel, and lifestyle needs of BBK’s most discerning customers; and the launch of the revamped SECURA brand, offering a new range of insurance and saving products, designed to meet all the insurance needs of our customers. It also included a number of initiatives aimed at enhancing the service delivery to our customers such as the launch of special services to cater the needs of special needs customers where certified sign language speaking employees made available to serve hearing-impaired customers and dedicated parking and wheel chair access assigned at all of its financial malls. It also included the launch of SMS banking, eStatements on mobile phones and the upgrading of Telebanking. Those initiatives reflect BBK’s commitment to create ideal banking experience and ensure the wellbeing for all the citizens of the Kingdom,” Chief Executive said.
“Notwithstanding the fact that the bank had successfully implemented almost all of the key growth initiatives outlined in its corporate strategic plan, we have also been heavily involved in investing in other strategic initiatives of the Bank such as the appointment of the highly respected consulting firm, Booz & Company, to undertake a Performance Optimization Review of all our businesses, aiming to boost the performance and enhance the efficiency across the BBK group”.
Comprehensive income has witnessed a robust growth from BD 20.6 million to reach BD 72.5 million in December 2012; this was mainly driven by the improvement in the market value of the non-trading investments as a result of the bank strategy to continuously improve the quality of its investment portfolio.
Fuelled by strong growth in net loans and advances as well as the boost in non-trading investment portfolio; BBK’s balance sheet as of 31st December 2012 registered a growth of 12.4% to reach BD3.108 billion, compared to 2011. Net loans and advances grew by 6.5% to reach BD1.499 billion, Non-trading investment portfolio stood at BD717 million compared to BD 564 reported in December 2011. Customer deposits continued with its upward positive trend and grew during the year by 6.2% to reach BD2.205 billion. BBK managed to keep its liquidity and funding positions at very comfortable levels with loans to deposits ratio standing at 60.9%.