Monday, October 14, 2019

BBK reports increase in net profit for the first quarter of 2018

BBK, Bahrain’s pioneer in retail and commercial banking, reported a net profit attributable to owners of BD 16.7 million for the first quarter of 2018 compared to BD 15.8 million for the similar period of the previous year, representing a 5.9% growth. The financial results were reviewed and approved by the Bank’s Board of Directors during the meeting held on Monday 30/4/2018.

The Board of Directors expressed their satisfaction on the results achieved by the Bank, commenting “We are pleased to announce the results for the first quarter, and gratified that BBK continues to show steady growth and improvement for the future despite the challenging market conditions. BBK’s robust start to the year speaks loudly about the Bank’s solid management team and employees which play a strong part in its success, with expressing thanks to our shareholders and customers for their confidence and loyalty”.

Mr. Reyadh Yousif Sater, BBK’s Chief Executive commented on the Bank’s performance, “The Bank’s continuing efforts to gain market share leads to another quarter of good financial results through the delivery of pioneering ideas and services in the country. As part of BBK’s ongoing endeavors to contribute towards strengthening Bahrain’s position as a leading financial and economic center in the region and a hub for innovation, we signed a partnership agreement with Bahrain FinTech Bay Co. (“BFB”), the largest dedicated FinTech hub in the Middle East and Africa. Furthermore, BBK was the first in the Kingdom to introduce and launch Electronic Funds Transfer System (EFTS) services via ATMs which aims to further ease customer experience. The first BBK Lite branch was launched in Ras Zuwayed during March 2018. As a first of its kind, the BBK Lite experience targets Bahrain corporates that employ a large number of expatriates and offers them easier and enhanced banking experience through specifically allocated branches and banking professionals. ”

The operating revenues for the three months ending March 2018 increased by 10.1% to reach BD 39.2 million compared to BD 35.6 million during the same period of 2017, primarily driven by increase in net interest income due to the growth in the loan portfolio. Other income grew by 10.9% compared to last year, which was mainly due to higher realized gain on the sale of investments securities. BBK’s share of profit of associated companies and joint ventures was higher by BD 0.4 million to stand at BD 1.6 million.

BBK’s operating costs increased by 7.4% reaching BD 14.1 million compared to BD 13.2 million reported during the same period last year. Despite the increase in the cost, the cost to income ratio showed an improvement from 37.0% to 36.1% reflecting the Bank’s ability to achieve healthy growth in its revenue streams, while continuing its strategy to invest in human resources, networks, and technology.

As part of the IFRS 9, the expected credit losses provisioning requirements and the Bank’s policies to remain prudent, BBK increased its net provision reserves by BD 8.1 million during the first quarter of 2018 (2017: BD 6.3 million).

Total comprehensive income attributable to owners for the first quarter of 2018 stood at BD 11.6 million compared to BD 29.1 million recorded for the same period of 2017, on account of reflecting the revaluation adverse movement in the market prices of some investments securities.

BBK’s balance sheet stood at BD 3,592.3 million as of end of March 2018, compared to BD 3,763.1 as of end of December 2017. Net loans and advances continued to grow, achieving an increase of 3.4% to BD 1,799.1 million (December 2017: BD 1,740.7 million). The Bank’s liquidity cautions continue to be very comfortable with the liquid assets portfolio, consisting of cash and balances with central banks, deposits with banks and other financial institutions, and treasury bills standing at 24.9% of total assets, while loans to customer deposits ratio stood at 75.2%. Total equity attributable to owners amounted to BD 470.4 million with a solid capital adequacy ratio that is well above minimum regulatory requirements.

During the same meeting, the Board discussed other important issues on its agenda such as the plans and objectives of the bank’s joint venture “Aegila Capital Management” which operates in the European market and takes London as its base, the quarterly liquidity report, the Bank investment strategy, Compliance Charter bank risk management strategy and policies. The Board of Directors has also discussed implementation of the recommendations related to the Board and Board Committees evaluation with the objective of enhancing the Board and its Committees.

The discussion of these items is in accordance with the Board of Directors’ vision in directing the Bank and its executive management towards greater growth and sustainability.

MOST READ

Google Maps now aids visually impaired people

Google Maps can now help visually impaired people get to their walking destinations more easily — by continually reminding them that they’re on the...

UAE Exchange Opens New Branch in Ras Zuwayed

Customers can now simply walk-in and choose from a bouquet of financial services such as instant money transfer, real-time account credit facility, and foreign...

VIVA Bahrain wins “Best Real Estate Solution” and “Best Smart City Solutions” awards

The Kingdom’s leading telecom operator, VIVA Bahrain was recently recognised at the Bahrain Smart Cities Summit 2019 with two awards – Best Smart City...

AGU Launches 3rd Season of ‘Teddy Bear Hospital’

The third season of the ‘Teddy Bear Hospital’ initiative was recently launched by the students of the College of Medicine and Medical Science in...

Carrefour and The Conserving Bounties Society Sign Agreement to Help Reduce Food Waste

Carrefour, which is operated in Bahrain by Majid Al Futtaim, signed an agreement with The Conserving Bounties Society, the first specialized foodbank in the...

Speed Cameras location service, New addition to the eTraffic app

Tired of getting caught on camera for speeding, unsure if you actually exceeded the road speed limit? Check out the new Speed Cameras location...

Bahrain and Kerala sign MoU for cooperation in FinTech, ICT and IoT Start-ups

The Bahrain Economic Development Board (EDB), the investment promotion agency for the Kingdom of Bahrain, has signed a memorandum of understanding (MoU) with the...

Reef Clubhouse: An Escape in the Heart of Manama

Amidst the bustling metro of daily life within Bahrain, lies an escape right in the center. Reef Clubhouse sits at the heart of Manama...

Tender Board opens 36 bids for five tenders for four purchasing authorities

The Tender Board, the independent regulator of Bahrain Government procurement activities, today opened 36 bids related to five tenders for four purchasing authorities. Among these,...

Microsoft has dedicated Office and emoji keys on its new keyboards

Microsoft’s latest keyboards now include dedicated Office and emoji keys. The software giant was previously experimenting with an Office key on keyboards earlier this...

INJAZ Bahrain hosts the annual Schools and Universities Appreciation Day

Under the patronage of His Excellence Dr. Majid Bin Ali Al Nuaimi, Minister of Education, INJAZ Bahrain hosted the annual Schools and Universities Appreciation...

Ali’s Comeback to open in New York City

The final leg of the four city African Diaspora Film Festival will begin at Teacher's College at Columbia University on November 29, 2019. To...

iGA Chief Executive Meets Huawei Bahrain CEO

Information & eGovernment Authority (iGA) Chief Executive Mohammed Ali AlQaed received Huawei Bahrain CEO, Jon Lu Yuedong at his office at iGA’s headquarters in...

Cataract: In hindsight, all we need is a clear foresight

This World Sight Day on October 10th is an excellent occasion to look into  a few of the most prevalent reasons for vision impairment...

Combat Climate Change with AI

As we’ve seen in the past few days world-wide that the climate change is the biggest challenge facing the planet. It will need every...