Manama: Mahmood Rafique, Editor: Khaleeji Commercial Bank (KHCB) reported a net profit, attributable to the shareholders, a net profit of BD 14.01 million attributable to the bank’s shareholders for the fiscal year ended 31st December 2022, compared to a net profit of BD 10.85 million for the same period of the previous year, an increase of 29.06%.
of BD 3.12 million during Q4 2022, compared to BD 2.01 million in the same period in 2021, an increase of 55.22%.
The increase in net profit is mainly attributable to an increase in the total income before return to investment account holders, reaching BD 18.57 million in the last quarter of 2022, compared to BD 11.34 million in the same period of 2021, with an increase of 63.82%. Income from financing and ijarah assets amounted to BD 9.925 million during the fourth quarter of 2022, compared to BD 7.725 million for the same period of the year 2021, with an increase of 28.48%. This has reflected on the reported earnings per share, reaching 3.902 Fils for Q4 2022, compared to -1.222 Fils for the same period of 2021.
The financial results also showed that the bank achieved a net profit of BD 14.01 million attributable to the Bank’s shareholders for the fiscal year ended 31st December 2022, compared to a net profit of BD 10.85 million for the same period of the previous year, an increase of 29.06%. The increase in net profit is mainly attributed to the increase in the total income before return to investment account holders, reaching BD 62.20 million, compared to BD 52.49 million in 2021 an increase of 18.51%. The bank reported an increase in income from financing and ijarah assets reaching BD 35.725 million during 2022, compared to BD 29.908 million for the same period in 2021, with an increase of 19.45%. Earnings per share reached 9.987 Fils in 2022, compared to 6.039 Fils in 2021.
Total shareholders’ equity has increased by 0.92% to reach BD 147.6 million in 2022, compared with BD 146.3 million reported by the end of 2021. Meanwhile, the total growth in the Bank’s assets was recorded at 22.25%, reaching BD 1,425.7 million, compared to BD 1,166.2 million in 2021. This resulted in an increase in the Investment in Sukuk to reach BD 523.33 million in 2022 compared to BD 323.85 million at the end of 2021, a growth of 61.60%. At the same time, the financial results showed an increase in total deposits by 21.94% to reach BD 1,111.53 million, compared to BD 911.55 million at the end of last year.
“It gives us great pleasure to announce these to announce these positive financial results in terms of general performance with increased profits and revenues, thanks to our firm commitment to present our valued shareholders with the best returns through reliance on operational plans that keep pace with modern trends and global changes at various levels, especially in light of economic transformations that necessitate a steady pace forward and a proactive approach in various aspects of our banking operations,” Hisham Ahmed Alrayes, Chairman of KHCB’s Board of Directors, said.
“These financial results follow the bank’s adherence to its innovative strategy of developing banking activities and accelerating digital transformation, which has enhanced client satisfaction with our new and innovative products and services. Furthermore, we proudly continue to embrace our role as a national banking institution that is keen on supporting government endeavours, especially considering the economic recovery plan’s positive results. I would like to commend the dedicated efforts made by the bank’s team in order to maintain its leading position as an Islamic bank that offers a comprehensive range of high-quality banking services to individuals and companies. I would also like to take this opportunity, on behalf of all members of the Board of Directors, to extend sincere gratitude and appreciation to our esteemed shareholders for their support and our valued clients for their confidence in the bank. We anticipate further successes and positive results in 2023,” Al Rayes added.
“We are pleased with the financial and operational results achieved in 2022 which coincide with the bank’s ambitious strategy to actualise the aspirations of shareholders through sustained profitability and revenue growth, as well as the increase of income generated from financing and leasing assets,” Sattam Sulaiman Algosaibi, Chief Executive Officer of KHCB, said.
“These financial results reflect the efforts made by the bank to consolidate its leading position in the local market by continuing to develop retail banking services, particularly relative to digital transformation by offering a package of innovative products and services to enhance our valued clients’ banking experience. This includes development of the “Khaleeji Mobile App” which was awarded Best Digital Product in the Kingdom of Bahrain 2022 by the International Business Magazine, the launch of self-service kiosks at branches that adopt eGovernment registered fingerprint authentication without the need for ID, and the provision of smart tablets for client service employees to digitally complete transactions quickly and easily. The bank has also worked on a range of retail banking services that offer exceptional privileges such as home finance, deposit offers, the “Al Waffer” investment account, and many other well-received services.”
“During the past year, the bank continued to implement the objectives of its strategic plan through expanding its network by opening a new branch in Wadi Al Sail Mall, and revamping its Hidd branch utilising a contemporary design that provides a convenient personal banking experience for individual and corporate clients alike. The bank has also continued to enter fruitful partnerships with a number of public and private institutions, which included signing a strategic partnership agreement with the Labour Fund “Tamkeen” to provide financing solutions to private institutions and help them meet their development goals and increase their contributions to the national economy. In addition, KHCB has signed an agreement with Edamah, the real estate arm of Bahrain “Mumtalakat” Holding Company, to finance the Sitra Logistics Park project with the goal of developing the Kingdom’s logistics sector. There was further cooperation with other authorities and institutions such as the Ministry of Housing and Urban Planning and Eskan Bank in providing support to many initiatives that facilitate citizen home financing, as well as cooperation with Ryalize to launch the “Ratbi” platform which allows corporate clients to grant their employees access to part of their earned salary upon request before payday. All this, among other partnerships, has enhanced the bank’s leading position in the Kingdom of Bahrain’s Islamic banking sector, and we will work to maintain this approach in 2023 as we prioritise such partnerships in our business model.”
