This was announced by Murad Ali Murad, the Chairman of the board of directors announced on Monday following the board has approved the financial results for Q1 of 2013.
“As we progress into 2013, we will continue our renewed commitment to deliver the best services to our customers through maintaining the positive momentum achieved across all our business units as reflected in both our net profit for the first quarter 2013, as well as in our core growth in market position as a key player amongst local retail and commercial banks in the country,” Murad Ali Murad, Chairman of BBK board said.
The increase in net profit was mainly fuelled by the growth in net interest income and FX and investment income. The Bank reported net interest income of BD 17 million, a growth of 12.2% when compared to first quarter of 2012. Well-crafted investment strategies resulted in boosting FX & Investment income by 92.6% to reach BD 6 million in March 2013 (2012: BD 3.1 million). Fees & Commission income stood at BD 6 million compared to BD 6.7 million which was reported for the same period last year.
As BBK continues following a prudent provisioning policy, the total loan provision reserve which includes an integral part classified as voluntarily general provision has increased to BD 3.2 million to cater for the unexpected business events that may occur due to market turbulence, compared to BD 0.5 million reported as at end of March 2012.
While the total comprehensive income continued to show positive fair value of the investment portfolio, slow movement in the market prices for bonds and equity investments, resulted in recording a comprehensive income for the quarter of BD 17.0 million compared to BD 24.3 million which was reported in similar period last year.
Despite the bank’s continuous investment in human capital, infrastructure, and customers’ service, the group’s operating costs were well controlled and raised within a reasonable range of 2.7% to amount to BD 12.4 million (2012: BD 12 million). Nevertheless, the cost to income ratio has improved significantly from 48.2% as of March 2012 to 42.6% as of March 2013 mainly on account of the 16.4% growth registered in the total operating revenues. It is worth mentioning that BBK has one of the biggest branches and ATM networks in the Kingdom with seven financial malls, eight branches, and 53 ATMs, the latest of which was added during the first quarter of 2013 at King’s Hamad University Hospital in Busaiteen.
BBK’s balance sheet has registered a robust growth of 14.3% from BD 2.8 billion as of 31st March 2012, to reach BD 3.2 billion as of 31st March 2013. This was mainly driven by the improvements in net loans and advances portfolio by 8.8% to amount to BD 1.54 billion, and a remarkable growth in non-trading investment securities portfolio by 10.3% to reach BD 718 million, that was supported by implementing sophisticated successful investments strategies. Taking advantage of the diversified basket of products offered by the bank, customer deposits grew by 12.7% to reach BD 2.216 billion in March 2013.
Liquidity position continued to remain at very comfortable levels with liquid assets (Cash and balances with central banks, treasury bills, Financial assets at fair value through statement of income, and Deposits and due from banks and other financial institutions) to total assets standing at 25.5% (March 2012: 22.4%), and loan to total deposit ratio at 60.7% (March 2012: 62.5%).