MANAMA: BBK shareholders with an overwhelming majority of 76% have approved the financial statement for the year 2013 during an annual general assembly held at the Gulf Hotel on Wednesday.
BBK achieved a net profit of BD 45.1 million in 2013 compared to BD 42.4 million in 2012, with a return on average equity of 14.5 percent and total assets at year end of BD 3.23 billion as compared to BD 3.108 billion in 2012.
“For Bahrain, 2013 has brought an improved financial outlook. Indicators such as control on unemployment, a healthy growth rate of around 4.8 percent, and robust governmental spending for 2013/2014 all suggest a good degree of recovery for the country. Our economy has grown and performed well thanks to the generous support of the Government, as well as from the non-oil sector where a number of significant undertakings were started or are about to be launched. These anticipated key infrastructure projects, funded both locally and through the GCC Development Fund, should in turn have positive implications for a number of other sectors and businesses while increasing consumer confidence and optimising future growth trajectory,” he added.
“Nonetheless, Bahrain continues to face some internal challenges, namely an increased budget deficit plus an inflation rate that reached a high of 3.8 percent during late 2013 which was primarily driven by a rise in housing and utility costs and also affected from an increase in food prices. All set against a backdrop of depleting oil reserves and a recovering socio-political arena. But in a move to prevent the budget deficit widening further and avert the possible risk of a future fiscal crunch, the Government is looking to introduce new ways to redirect subsidies to those most in need and create a more long term sustainable public spending model. Despite these challenges, it is important to bear in mind that Bahrain’s current fiscal position is stable; the ratio of Government debt to GDP is below 40 percent as a result of a long history of prudent management and fiscal sustainability, which is a recognised Government priority,” he added.
“In line with our strategic objectives and key restructuring initiatives, we extended on our ability to do more with less wherever possible. Driven by our commitment to increase efficiency and control operating costs, ambitious targets were set – and met – for consolidating and re-engineering some of the Bank’s operations and processes.”
“Prudent risk management, a strong balance sheet and focused implementation of our strategy enabled BBK to capture opportunities across the region and overseas.”
“BBK showed sustainable growth of 6.4 percent in 2013 with well-diversified revenue streams contributing to the positive overall results. Retail Banking, Corporate Banking and Overseas banking all returned robust figures. The Bank continued to strengthen its international presence through the opening of a third branch in Aluva, in the state of Kerala in the Republic of India, as well as being granted an additional license for a fourth branch in New Delhi, which we plan to open in Q3 2014, further extending our reach in a market with good growth potential. Regional branches in Kuwait and Dubai also continue to gain, showing positive future outlooks.”
“With regards to our subsidiaries, a recommitment to CrediMax has helped the Bank maintain its market share in the card business while Invita is looking to expand regionally through opening a new branch in Kuwait soon.
“Thanks to the skill and commitment of the Bank’s Governing Board and Executive Management team, the implementation of internal restructuring initiatives were seamless and I feel confident as we journey into 2014 that BBK will be an even more effective and competitive organisation by streamlining activities, optimising human capital, fostering synergies between divisions and automating many processes.
“Good corporate governance remains as ever a central commitment for BBK and we’re very proud to maintain our leading position in this area by meeting and surpassing requirements at local, regional and international levels.
“As a leading Bahraini financial institution, giving something back to our community is a priority for BBK. I am proud to say in 2013 we allocated a total of BD 1.25 million in support of a number of initiatives including the Crown Prince’s International Scholarship Programme (CPISP) and Bahrain philanthropic societies. Our extensive Corporate Social Responsibility (CSR) programme remains an integral part of our business with its activities supported at the very highest levels of the organisation.
“As part of an organisation with a history of leadership of over 42 years, all of us at BBK share a commitment to the operating principles and core values that drive our business decisions and practices. In 2013 we continued to demonstrate our allegiance to developing the wider Bahraini economy through our engagement with small and medium-sized enterprises (SMEs), a business sector that has been adversely affected by local conditions in recent years. BBK is dedicated to finding ways to do more for this important sector, supporting and guiding small business owners and entrepreneurs as they grow their enterprises. We feel this is in line with the Government’s vision for 2030, as well as a way to contribute to the future prosperity and diversity of the country’s economy.
“As we look to the future we will continue to serve all our stakeholders with diligence, seeking to bring new and innovative banking services to our customers and striving to achieve excellence in all aspects of our service delivery,” he said.