BBK yesterday announced its financial results for the period ended September 30, 2023, including the third quarter of 2023

For the third quarter of 2023 the bank achieved a net profit of BD19.5 million compared to BD14m in the same period last year, an increase of 39.3 per cent.

The basic and diluted earnings per share amounted to 11 fils compared to 8 fils achieved during the corresponding period last year.

The total comprehensive income grew to BD23.7m during the period compared to BD12.3m during the third quarter of last year, representing an increase of 92.7pc.

The increase is due to the positive movement in the valuation of investment securities and higher profits.

The increase in net profit was mainly attributable to higher net interest income which increased by 27.1pc from BD26.2m during the third quarter of 2022 to BD33.3m during the third quarter of the current year due to effective balance sheet management and the interest rate exposure position.

In addition, net fees and commission income increased by 2.3pc from BD4.4m to BD4.5m, investment and other income increased by around 12.1pc from BD3.3m to BD3.7m, while net provisions in the quarter reduced by 55.9pc from BD3.4m to BD1.5m compared to the same period of last year.

On the other hand, the bank’s share from associated companies and joint ventures during the quarter amounted to a loss of BD2.7m compared to BD0.4m profit in the corresponding period of last year.

Total operating expenses increased by 6.7pc from BD16.4m to BD17.5m attributed to strategic initiatives, enhancement of current distribution channels and services, and investing in human capital.

For the nine months ended September 30, 2023 the bank achieved a net profit of BD56.5m compared to BD44.5m in the same period last year, representing an increase of 27pc.

The basic and diluted earnings per share amounted to 33 fils for the current period compared to 26 fils during the same period of last year.

The total comprehensive income for the nine months period ended September 30, 2023 amounted to BD60.4m compared to BD29.8m during the corresponding period last year, representing growth of 102.7pc which mainly reflects the positive shift in investment securities market valuations and the higher profits for the period.

The higher net profit reflects the increase in net interest income by 45.1pc from BD68.8m to BD99.8m, as a result of balance sheet optimisation initiatives and the interest rate exposure position.

Net fees and commission income registered a decline of 25.2pc decreasing from BD13.5m to BD10.1m, and investment and other income decreased by 8.3pc from BD12.1m to BD11.1m.

Moreover, net provision increased from BD5m to BD7.5m during the nine months period representing an increase of 50pc.

Conversely, the bank’s share of associated companies and joint ventures decreased to a share of loss of BD5.8m, compared to a gain of BD3.2m during the corresponding period last year. While total operating expenses increased by 7pc from BD47.2m in 2022 to BD50.5m in 2023.

The total shareholders’ equity stood at BD587.3m as of end-September 2023, 1.5pc lower compared to BD596.3m as of year-end 2022.

The drop was mainly related to the declaration of cash dividends to the shareholders during the year 2023.

Total assets as of end-September 2023 stood at BD3,974.3m (end-2022: BD3,753.9m), registering an increase of 5.9pc.

Cash and balances with central banks registered an increase of 37.5pc, increasing to BD573.3m (end-2022: BD416.9m).

Treasury bills increased by 25.8pc to BD349.5m (end-2022: BD277.9m).

Meanwhile, net loans and advances decreased slightly by 1.7pc to BD1,587.2m (end-2022: BD1,614m); and investment securities dropped by 2.1pc to

BD894.6m (end-2022: BD914.2m).

Moreover, deposits and amounts due from banks and other financial institutions increased by 10.8pc to BD306.6m (end-2022: BD276.6m).

Customer deposits registered an increase of 5.3pc to BD2,229.1m (end-2022: BD2,116.6m).

Deposits and amounts due to banks and other financial institutions increased by 31.8pc to BD381.3m (end-2022: BD289.4m).

The board of directors commented: “BBK’s remarkable performance this year is a testament to our strategic clarity, dynamic business model, and adaptive strategies. These factors have not only driven digital advancements but have also elevated the overall banking experience for our customers. In the rapidly evolving digital era, BBK remains steadfast in pioneering services that contribute to Bahrain’s economic and social growth.

The dedication of our professional team – coupled with our customers’ and stakeholders’ trust – positions BBK as a frontrunner in the digital banking frontier. We extend our gratitude to shareholders for their unwavering support, to loyal customers for their patronage, and to our dedicated management team and employees who make this digital journey a remarkable success.”

BBK Group chief executive Dr AbdulRahman Saif said: “I am pleased to share BBK’s impressive financial performance, marked by robust profits and sustained net profit growth. Beyond financial milestones, our commitment to societal impact stands out through strategic collaborations, such as the empowering partnership with ‘Nasmaakum’ for individuals with hearing and speech impairments.

Meanwhile, initiatives such as ‘Women on Board’ and ‘Grow’ for Bahraini graduates showcase our commitment to community development and talent cultivation. The introduction of the innovative ‘BBK Business’ platform and its solutions towards serving Corporate and Small & Medium Enterprises (SMEs) in Bahrain underscores our forward-looking approach and commitment to a variety of customers.”

He added: “Furthermore, we launched an investment solution on the digital platforms which underscores our solid digitisation strategy and unwavering commitment to furnishing innovative and adaptable solutions to our customers.

In addition, we have enhanced and upgraded our existing channels, and expanded our products and services to provide our customers with a brighter banking experience. Furthermore, our new cutting-edge digital Sitra branch with a 24/7 digital zone exemplifies our dedication to delivering exceptional banking experience. Despite market uncertainties, our optimism prevails, anchored in government policies and our unwavering commitment to balanced growth, ensuring sustained value creation for all stakeholders.”

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