16.07.2015, 12:18
BBK: Financial Results for the period ended 30th June 2015
OREANDA-NEWS. BBK Board of directors were pleased to announce yesterday that the bank reported a net
profit of BD 29.4 million for the first half of 2015, a growth of 8.2% compared to BD 27.2
million reported for the corresponding period of last year; increasing earnings per share from
25 fils to 28 fils.
Commenting on the Bank’s performance, Mr. Murad Ali Murad, Chairman of the Board of Directors said, “I am pleased with our performance for the first half of 2015 as BBK sustained its positive momentum and maintained its position as a pioneer in retail and commercial banking. The Bank has been increasing its profitability, assets and customer deposits incessantly, reflecting a strong sign of a well-crafted and successfully implemented strategic plan, prudent risk management practices, diversified product mix and widely spread networks, all geared to ensure delivering the best quality of customer service to all our customers.
BBK continued to deliver robust results across its revenue lines, generating solid growth in the bank’s consolidated net profit. The increase in net profits was mainly attributable to the remarkable increase in fees and commission income by 12.1% to reach BD 15.3 million compared to BD 13.7 million reported in June 2014, supported by a 3.9% increase in FX and investment income to reach BD 9.6 million (June 2014: BD 9.2 million). Net interest income also increased slightly to BD 35.0 million for the first half of 2015, as the funding cost of the bank impacted by the overlap cost of the senior medium term borrowing raised early during the year to replace the notes which will be maturing during the fourth quarter of 2015.
Improved assets quality and strong risk management processes resulted in lower provisions requirements booked during 2015. Loan loss provisions amounted to BD 6.2 million for the first half of 2015, 15% lower when compared to the same period of last year. This included BD 4 million general provisions following the bank’s general provisions policy to increase its general reserves relative to the total risk weighted assets of the bank.
The Bank’s prudent cost control policy and strong revenue generating capability allowed it to maintain its cost to income ratio at 40.2% (June 2014: 40.5%).
The bank comprehensive income stood at BD 33.2 million, compared to BD 41.5 million reported for the same period of last year. The decline was mainly driven by the fluctuation in the market prices for bonds and equities.
For the three months ended 30th June 2015, the bank reported a growth in net profits of 10.5% to reach BD 14.6 million compared to BD 13.2 million reported for the same period of last year. This was mainly driven by the positive growth in other income (fees and commission, and FX and investment income) by 17.6% to reach BD 13.3 million when compared to the same period of last year, while net interest income stood at BD 17.1 million compared to BD 17.7 million for the three months period ended June 2014. Provision requirements for the second quarter of 2015 amounted to BD 3.2 million, compared to BD 4.1 million reported for the three months period ended June 2014.
Commenting on the bank’s performance, Mr. A.Karim Bucheery, Chief Executive, said “Our good results and steady improvements in performance for the second quarter of 2015 is a result of our sustained culture of superior performance, operational excellence, and excellent customer services; which will enable us to sustain the momentum we built over the years. As we approach towards the final year of our current three-years strategic plan, and while positioning ourselves to move towards the next strategic cycle 2016-2018, I’m confident that we will continue building that steady performance and enhancing our shareholders value”.
While the Bank has achieved a good growth in its profit records, it has also maintained a solid balance sheet position. BBK delivered a balance sheet growth of 14.2% at the end of June 2015 with total assets standing at BD 3,796 million, compared to BD 3,323 million reported in June 2014. Balance sheet growth over June 2014 was driven mainly by an increase in Net Loans & Advances and increase in non-trading investments. Hand in hand with the Bank’s strategy to offer innovative and competitive products and top-of-the-line services to its clients, BBK launched its Mortgage, Car, Consumer Loans campaigns during the first half of the year which has fuelled the increase in net loans and advances to stand at BD 1,812 million representing a 4.1% increase in comparison to BD 1,740 million as reported in June 2014. Non-trading investments increased by 2.1% to stand at BD 779 million. Customer deposits maintained a positive upward trend to reach BD 2,643 million, a 10.5% growth over the same period of last year.
The bank’s liquidity and funding positions were kept at a very comfortable level with liquid assets (Cash and balances with central banks, treasury bills, and Deposits and due from banks and other financial institutions) to total assets standing at 28.8% (June 2014: 20.7%), loan to total deposit ratio at 62.81% (June 2014: 67.08%), and capital adequacy ratio remained above the regulatory requirement.
Commenting on the Bank’s performance, Mr. Murad Ali Murad, Chairman of the Board of Directors said, “I am pleased with our performance for the first half of 2015 as BBK sustained its positive momentum and maintained its position as a pioneer in retail and commercial banking. The Bank has been increasing its profitability, assets and customer deposits incessantly, reflecting a strong sign of a well-crafted and successfully implemented strategic plan, prudent risk management practices, diversified product mix and widely spread networks, all geared to ensure delivering the best quality of customer service to all our customers.
BBK continued to deliver robust results across its revenue lines, generating solid growth in the bank’s consolidated net profit. The increase in net profits was mainly attributable to the remarkable increase in fees and commission income by 12.1% to reach BD 15.3 million compared to BD 13.7 million reported in June 2014, supported by a 3.9% increase in FX and investment income to reach BD 9.6 million (June 2014: BD 9.2 million). Net interest income also increased slightly to BD 35.0 million for the first half of 2015, as the funding cost of the bank impacted by the overlap cost of the senior medium term borrowing raised early during the year to replace the notes which will be maturing during the fourth quarter of 2015.
Improved assets quality and strong risk management processes resulted in lower provisions requirements booked during 2015. Loan loss provisions amounted to BD 6.2 million for the first half of 2015, 15% lower when compared to the same period of last year. This included BD 4 million general provisions following the bank’s general provisions policy to increase its general reserves relative to the total risk weighted assets of the bank.
The Bank’s prudent cost control policy and strong revenue generating capability allowed it to maintain its cost to income ratio at 40.2% (June 2014: 40.5%).
The bank comprehensive income stood at BD 33.2 million, compared to BD 41.5 million reported for the same period of last year. The decline was mainly driven by the fluctuation in the market prices for bonds and equities.
For the three months ended 30th June 2015, the bank reported a growth in net profits of 10.5% to reach BD 14.6 million compared to BD 13.2 million reported for the same period of last year. This was mainly driven by the positive growth in other income (fees and commission, and FX and investment income) by 17.6% to reach BD 13.3 million when compared to the same period of last year, while net interest income stood at BD 17.1 million compared to BD 17.7 million for the three months period ended June 2014. Provision requirements for the second quarter of 2015 amounted to BD 3.2 million, compared to BD 4.1 million reported for the three months period ended June 2014.
Commenting on the bank’s performance, Mr. A.Karim Bucheery, Chief Executive, said “Our good results and steady improvements in performance for the second quarter of 2015 is a result of our sustained culture of superior performance, operational excellence, and excellent customer services; which will enable us to sustain the momentum we built over the years. As we approach towards the final year of our current three-years strategic plan, and while positioning ourselves to move towards the next strategic cycle 2016-2018, I’m confident that we will continue building that steady performance and enhancing our shareholders value”.
While the Bank has achieved a good growth in its profit records, it has also maintained a solid balance sheet position. BBK delivered a balance sheet growth of 14.2% at the end of June 2015 with total assets standing at BD 3,796 million, compared to BD 3,323 million reported in June 2014. Balance sheet growth over June 2014 was driven mainly by an increase in Net Loans & Advances and increase in non-trading investments. Hand in hand with the Bank’s strategy to offer innovative and competitive products and top-of-the-line services to its clients, BBK launched its Mortgage, Car, Consumer Loans campaigns during the first half of the year which has fuelled the increase in net loans and advances to stand at BD 1,812 million representing a 4.1% increase in comparison to BD 1,740 million as reported in June 2014. Non-trading investments increased by 2.1% to stand at BD 779 million. Customer deposits maintained a positive upward trend to reach BD 2,643 million, a 10.5% growth over the same period of last year.
The bank’s liquidity and funding positions were kept at a very comfortable level with liquid assets (Cash and balances with central banks, treasury bills, and Deposits and due from banks and other financial institutions) to total assets standing at 28.8% (June 2014: 20.7%), loan to total deposit ratio at 62.81% (June 2014: 67.08%), and capital adequacy ratio remained above the regulatory requirement.
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