31/01/2011 00:00 AST
The BBK has achieved a record net profit of BD39.15 million ($103.84m) last year with a return on equity of 16.90 per cent compared to 16.38pc in 2009. Total assets at the end of the year grew by 7.38pc to reach BD2,447m compared to BD2,279m in 2009.
This was announced yesterday by the bank's chairman Murad Ali Murad after the board of directors' meeting, where they approved the bank's financial statements for the year which ended on December 31.
The board has also recommended a cash dividend of 25 fils per share".
The growth in net profit was attributed to the increase in fees and commission income by 14.6pc to reach BD25.27m.
Investment income also has grown from BD9.2m in December 2009, to BD27.85m, which included non-recurring gain on sale of non-trading investment in Kuwait during the first quarter of 2010.
Net interest income on the other hand, stood at BD55.96m, which included gain on partial redemption of medium-term loan of BD2.22m (BD7.69m in 2009).
"During 2010 we began implementing various initiatives that have been outlined in our Corporate Strategic Plan for 2010-2012. We have been able to get off to a strong start and the fact that BBK achieved a new record net profit gives us considerable satisfaction," BBK chief executive Abdulkarim Bucheery said.
"We have re-focused our efforts squarely on local and regional business. A number of initiatives which started in 2009 were completed during 2010 and the benefits of these are now being realised.
"There has been strong growth in our customer deposit base, particularly on the retail and local corporate sides of the business.
"On the corporate side we have been able to increase market share, helped by the launch of our new cash management platform."
The net profit for the fourth quarter of 2010 stood at BD7.9m compared to BD10m for the same period in 2009.
While other income increased to BD7.90m, compared to BD6.70m. Net interest income stood at BD13.1m compared to BD15.9m, which included a gain of BD1.8m from the buy back of the sub-debt.
BBK balance sheet grew by BD168m to reach BD2,447m as of end of December 2010. Customer deposits grew from BD1,517m to BD1,594m, reflecting customers' confidence in the bank.
This helped improve the liquidity of the bank as can be witnessed from the improved loan to deposit ratio of 71pc (72pc in 2009), and liquid assets (including cash, balances with central banks, treasury bills, and deposits with banks and financial institutions) to total assets of 27pc (25.7pc in 2009).
Non-trading investments grew by 19.1pc to reach BD425.4m, in line with bank's strategic plan, making a solid contribution to the bank income in 2010. Loans portfolio marginally grew from BD1,269m to BD1,276m with a more focus on quality lending opportunities available in the market.
Capital adequacy also stood comfortably well above the regulatory requirement at 18.57pc, compared to 17.51pc as of end of 2009.
For more on this
Click Here
Gulf Daily News
Please wait...
