BBK net profit up 8.1pc in Q1
Manama : BBK yesterday reported an 8.1 per cent increase in net profit attributable to owners to BD15.8 million for the first quarter of 2017 from BD14.6m recorded in the same period a year ago. This is after reflecting the restatement impact of BD688 thousand on last year’s comparable period financial results due to IFRS9 applications.
The increase, according to BBK, was fueled by 12.5pc growth in operating revenues to reach BD35.6m compared to BD31.6m during the first quarter of 2016, driven primarily by 10.8pc increase in net interest income.
Other income (fees and commissions, foreign exchange and investment income) also witnessed a strong increase of 17.1pc to stand at BD11.7m compared to BD10.0m reported in similar period last year, thanks to income diversification strategies and better trading results as well as BBK’s share of profit from associated companies and joint ventures, which was higher by 3.3pc at
BD1.2m.
According to BBK, continuous investments in human capital, operations and infrastructure resulted in a marginal increase of 1.3pc in operating costs to BD13.2m. The cost to income ratio improved to 37.0pc, from 41.1pc reported in the first quarter of 2016, reflecting BBK’s prudent cost control policies and strong revenue generating capabilities.
Total comprehensive income stood at BD29.1m compared to negative BD2.4m recorded for the same period of 2016.
BBK said it has increased its provisioning charges by BD6.3m for the first quarter of 2017 compared to BD3.8m reported in similar period last year, in line with the bank’s policy and the higher provisioning requirements mandated by the shift from the incurred loss model under IAS 39 to the expected loss model under IFRS 9, Commenting on the bank’s performance, Riyadh Sater, Chief Executive said, “As year 2017 progresses, we will capitalize on the strength of our financial and human resources, expertise and our track record to reward our stakeholders with more value-addition and contribute further to the development and prosperity of the societies in which we operate”.
BBK’s balance sheet stood at BD3,562.3m as of end of March 2017, 3.8pc lower year-to-date.
Customer deposits portfolio as of end of March 2017 stood at BD2,254.9m with a comfortable loans to customer deposits ratio of
78.5pc.
Equity attributable to owners amounted to BD468.0m with a solid capital adequacy ratio that is well above minimum regulatory requirements.
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