BBK reports BD 34.5 million net profit for the three quarters of 2013

29 Oct 2013

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Mr. Murad Ali Murad, the Chairman of BBK’s Board of Directors yesterday announced the Board’s approval of the bank’s consolidated financial results for the nine months period ended 30th September2013; where the Bank registered a net profit of BD 34.5 million, a growth of 7.7% compared to BD 32.1 million reported for the same period of last year; with an earnings per share of 37 fils (2012: 35 fils per share).

Expressing his pleasure of the achieved results, Mr. Murad Ali Murad chairman of the board of directors commented: “BBK managed to deliver another strong record for the quarter notwithstanding the economic and market ongoing challenges. The diversification of our income sources continues to differentiate BBK and helped us in maintaining our competitive position in the market.”
He added, “The bank has delivered many of its strategic objectives, and have exceeded the targets despite of the uncertainty in some international markets. The bank’s core businesses contribution remains resilient and shall continue to maintain and enhance its competitive advantages in the market.”
The growth in the bank’s net profits was driven by higher net interest income and a continued growth in FX and investment income. Net interest income has recorded a growth of 6.3% compared to similar period of last year and stood at BD 51.5 million as of end of September 2013. FX and investments income grew remarkably by 42.4% to reach BD 13.5 million for the third quarter of 2013 (2012: BD 9.5 million). BBK’s operating expense has increased to BD 39.3 million compared to BD 37.3 million for the same period of last year, with cost to income ratio at 46.8% as of September 2013.

Total provision reserves requirements amounted to BD 9.6 million for the nine months ended 30th September 2013 as a result of the bank’s prudent risk management policy, of which BD 6.8 million was assigned  to  general provision reserves, to account for potential unexpected events and economic turbulences.
Commenting on the bank’s performance, Mr. A.Karim Bucheery, Chief Executive, said “The substantial progress achieved in managing business risk and implementations of our corporate strategic initiatives were reflected in the bank’s solid performance. The bank was able to balance between volume growth and maintenance of healthy business margins while all core businesses continue to deliver durable and steady returns”.
Mr. Bucheery added” The committed execution of the long-term strategic directions combined with efficiency enhancement and continuous innovations have well positioned the bank in the market. The bank has the momentum in all of its businesses which is reflected in its commitment in delivering value added services to our customers. It still pursues its expansion plans in India and we are thrilled that the Reserve Bank of India has granted the Bank the fourth license to operate a branch in New Delhi.”

For the three months ended 30 September 2013, BBK registered a growth in net profits of 6.4% to reach BD 9.3 million compared to BD 8.8 million for the corresponding period of last year. Net interest income for the 3rd quarter of 2013 reported at BD 16.9 million, while other income including fees and commission, FX and investment income reached BD 10.6 million. The bank recorded a total provision reserve requirement for the 3rdquarter of 2013 of BD 3.4 million, of which BD 2.7 million was for general provision reserves, compared to BD 7.3 million reported for the same period of last year.

Adding on BBK success and leadership in corporate governance, Mr. Bucheery said “the bank has received its Corporate Governance recognition award for the fourth consecutive year, which was competed among banks from 9 countries in the MENA region. Hawkahmah’s Bank Corporate Governance Award recognizes banks for exhibiting high levels of commitment to good corporate governance practices and ongoing enhancements in the area. In addition, BBK has achieved ISO 27001 & ISO 22301 certifications for its Information Security Management System (ISMS) and Business Continuity Management System (BCMS) during the year. Moreover, the Bank was recently selected by the World Confederation of Businesses (WORLDCOB) to receive the “THE BIZZ 2013” for the Inspirational Category, as the Bank has demonstrated its pioneering position in the market”

BBK’s balance sheet witnessed a growth of 11% and reached BD 3,296 million in September 2013. This was mainly driven by the growth in net loans & advances portfolio by 10% to stand at BD 1,609 million, and higher non-trading investments by 3% to stand at BD 744 million for the third quarter of 2013, supported by adequate and prudent investment strategy.  Customer deposits have also recorded a growth of 6%to reach BD 2,301 million as of 30th September 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 24.9% (September 2012: 22.7%), and loan to total deposit ratio at 61.4% September 2012: 61.0%).

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