Bahrain's BBK Group reports 5.6% jump in net profit of $40mln

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Bahrain - BBK Group achieved a net profit of BD15.1 million for the quarter ended March 31, 2022 compared to BD14.3 million achieved during the same period of last year, representing an increase of 5.6 per cent.

The basic and diluted earnings per share amounted to 9 fils, on par with last year.

Total comprehensive income for the three months ended March 31, 2022 amounted to BD28.7m, an increase of 55.1pc compared to the BD18.5m achieved during the same period of last year.

Total revenues (including share of income from associated companies and joint ventures) for the quarter has increased by 11.7pc from BD28.2m achieved during last year to BD31.5m achieved this year.

This increase was driven by an increase in the bank’s share of profit from associated companies and joint ventures to BD2.3m, compared to a share of loss of BD1.4m during last year, and increase in fees and commission income by 19.4pc from BD3.6m achieved during the first quarter of 2021 to BD4.3m during the current year.

On the other hand, investment and other income was lower by 9.8pc to BD4.6m (BD5.1m during the same period of last year), and net interest income was slightly lower by 2.9pc at BD20.3m (BD20.9m during the same period of last year).

Furthermore, the bank’s continuous investment in its strategic initiatives and human capital led to an increase in total operating costs to BD15.4m compared to BD14m during the same period of last year, an increase of 10pc.

In addition, net provision charges for the first quarter of the current year amounted to BD0.8m, compared to a write-back of BD0.3m during the same period of last year.

The growth in total comprehensive income was led by the significant increase in the valuation of investment securities, in addition to higher net profit.

The total shareholders’ as of end-March 2022 stood at BD539.7m lower than December 31, 2021 of BD542.8m, mainly due to the cash dividend payment declared to shareholders during the first quarter of 2022, partially offset by interim profit and increase in investment securities’ fair value reserve.

Deposits

The total assets by end-March 2022 reached BD3,708.1m (December 31, 2021: BD3,672.7m), registering a slight increase of 1pc.

Cash and balances with central banks increased by 38.4pc to BD394.1m (December 31, 2021: BD284.8m), treasury bills increased by 6.7pc to BD298m (December 31, 2021: BD279.2m), and net loans and advances to customers increased by 1.4pc to BD1,629.5m (December 31, 2021: BD1,607.2m).

On the other hand, deposits and amounts due from banks and other financial institutions decreased by 34.3pc to BD221.8m (December 31, 2021: BD337.5m) and investment securities dropped by 2pc to BD966.3m (December 31, 2021: BD985.8m).

Customer deposits stood at BD2,130.2m (December 31, 2021: BD2,125.6m) continued to be the bank’s core source of stable funding, with a comfortable net loans to customer deposits ratio of 76.5pc (December 31, 2021: 75.6pc).

Commenting on the results, the board of directors said: “We are delighted with the good financial performance, and the bank’s ability to continue to provide attractive returns to its shareholders. This robust performance was achieved despite the massive challenges and instability in the operating environment worldwide, reflecting BBK’s resilience and the success of its business model.”

Also commenting on the results, BBK Group chief executive Dr AbdulRahman Saif said: “The first quarter of 2022 was another bright chapter in BBK’s long history of success and innovation.

The robust financial performance is a living testament of the success of the bank’s strategic plan 2019-2021 which was achieved at extremely exceptional circumstances. This success will be our stepping stone for pursuing more ambitious objectives as the year 2022 marks the start of the new strategic cycle.

Digital transformation will continue to be the main theme of our new strategic cycle, while at the same time we will aim to target organic and inorganic growths.”