BBK H1 net profit rises to BD32.2m
Manama : BBK yesterday announced a net profit attributable to owners of BD32.2 million for the first half of 2017 compared to BD29.8m for the corresponding period of last year, an increase of 8.1 per cent after reflecting the restatement negative impact of BD1.5m on last year’s comparable period financial results due to IFRS9 applications. The basic earnings per share for the first half of 2017 reached 27fils compared to 28fils during the same period of 2016.
“The strong financial results posted by BBK and the steady improvement across all performance measures are very satisfactory and in line with the bank’s corporate plans for 2017. Despite the challenging and subdued operating environment, we remain optimistic and confident in BBK’s ability to continue building that steady performance, enhancing shareholders’ values”, the bank said in a statement.
Healthy growth across all income streams led to 7.5pc increase in operating revenues to reach BD 70.3m during the first half of 2017, compared to BD65.4m during the same period of 2016. Net interest income increased by 3.3pc due to BBK’s dynamic balance sheet management approach and adequate control over funding costs, supported by increase in global interest rates. Similarly, Other income (consisting of fees and commissions, foreign exchange and investment income) improved by 16.5pc, benefiting from the bank’s income diversification initiatives and strong investments portfolio management. The bank’s investments in associated companies and joint ventures continued to perform strongly, increasing the bank’s share in their profits by 9.4pc compared to the same period of last year.
Operating costs increased moderately to 3.6pc for the first six months of 2017 to stand at BD26.7m (First half 2016: BD25.7m). Nevertheless, the cost to income ratio improved from 39.3pc reported for the first half of 2016 to 37.9pc for the current reporting period.
Net provision reserves rose by BD10.8m during the first half of 2017 (First half of 2016: BD 9.4m). Total comprehensive income for the first half of 2017 attributable to owners increased from BD13.7m as of 30th June 2016 to BD40.4m, mainly due to improvement in the fair value reserve of investment securities and higher net profit during the current year.
For the three months ended on 30th June 2017, the bank achieved a net profit of BD16.4m compared to BD15.2m reported during the same period of 2016, an increase of 8.2pc. This was attributable to a robust increase in operating revenues by 2.9pc to BD34.8m on the back of 16.0pc growth in other income to BD11.4m. Operating costs for the second quarter of 2017 amounted to BD13.5m compared to BD12.7m during the corresponding period of 2016, and net provisioning requirements stood at BD4.6m compared to BD5.7m during the same period of 2016.
Commenting on the bank’s performance, Reyadh Sater, Chief Executive said: “During the first half of 2017, we received the final regulatory approvals for our joint-venture investment firm in London “AEGILA Capital Management Ltd”, appointed the management team and the firm will very soon start its activities in the global financial center of London. We expect that this joint venture to enhance the products offering to our customers, and provide them with first class investment opportunities in the British Market.”
Core lending and investing activities remained robust with net loans and advances standing at BD1,695.5m (December 2016: BD1,767.1m) and Investment securities standing at BD765.5m (December 2016: BD 768.1m).
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