MANAMA: BBK on Monday said the bank recorded net profit of BD 14.9 million in the first quarter of 2015, 6% higher than the profit of BD 14 million reported for the same period of last year; increasing the earnings per share from 13 fils to 14 fils.
Murad Ali Murad, Chairman of the board of directors, announced the Board’s approval for the Bank’s financial results for the three months ended 31st March 2015.
“Once again I am much honored to announce such good results achieved by the bank, with most business indicators showing an encouraging trend. The growth reported during the first quarter of 2015 was a result of carefully crafted and successfully implemented strategy, which had paid the bank record profit for the last few years. The year 2015 represents a special year for BBK as it marks the end of its current strategic cycle, and sets the path for the 2016-2018 cycle,” Murad Ali Murad, Chairman of the Board of Directors, said.
“The bank has started in shaping the theme for the next strategic plan; where we will ensure building on the success we have achieved so far while at the same time develop new and innovative ways that would ensure a greater success to the bank in the future.”
The increase in the bank’s net profit was mainly attributable to the robust growth in fees & commission income and the healthy increase in net interest income. Fees & commission income grew by 8.4% to amount to BD 7.3 million compared to BD 6.7 million reported in the same period of last year. The net interest income stood at BD 17.9 million, 4.7% higher than the amount reported in the first quarter of 2014. The improvement in net interest income was mainly driven by a 9.2% growth in the bank’s loans and advances portfolio, and a 9.5% growth in the non-trading investments portfolio, when compared to the same period of last year. Fx and investment income reported at BD 4.3 million, compared to BD 4.8 million for the first quarter of 2014.
Enhanced overall credit quality was reflected in relatively lower loss provisions in 2015 of BD 2.9 million, of which BD 1.0 million was on the account of general provisions, which is aimed at creating a selective coverage for all the bank’s risk weighted exposures.
The bank reported a comprehensive income of BD 9.4 million compared to BD 20.2 million reported for the period ended 31 March 2014. The drop was mainly driven by the fluctuation in the market prices for bonds and equities.
The bank’s continuous investments in enhancing customer service through various delivery channels won it “The best Customer Experience Overall Website” award in the Customer Experience Benchmarking Index 2014 (CEBI 2014) administered by Ethos Integrated Solutions. Despite of the bank’s continuous investment strategy in its human capital, technology platform and branches network, the operating cost of the bank is well managed within industry best practice where the cost to income ratio stands at 39.7% as of 31 March 2015.
BBK’s balance sheet as of 31st March 2015 grew by 10.9% over a similar period last year and reached BD 3,683 million. Net loans & advances grew by 9.2% compared to 31 March 2014, to stand at BD 1,887 million, and Non-trading investment portfolio grew by 9.5% and stood at BD 797 million. The growth in the balance sheet was fuelled by a remarkable growth in customer deposits of 13.7% amounting to BD 2,588 million, in addition to the USD 400 million capital market funding raised through the bank’s EMTN program during the month of March 2015.
Liquidity position continued to remain at 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 23.7% (March 2014: 22.1%), and loan to total deposit ratio at 67.0% (March 2014: 66.1%).
