2013 Third Quarter Results - Press Release

2013 Third Quarter Results - Press Release

Key Highlights:

  • YTD Sept 2013 Net Profit BD 40.09 million, up by 8.3 % over the previous year.
  • Total Customer Deposits BD 2,118.47 million, up by 4.4 % over Sept 2012.
  • Total Earning Assets BD 2,514.28 million, up by 2.0 % over Sept 2012.

The Bank recorded a Net Profit of BD 40.09 million (US$ 106.62 million) for the nine months ended 30 September 2013 compared to BD 37.03 million (US$ 98.48 million) for the corresponding period of the previous year, an increase of 8.3%.  For the third quarter of 2013, the Bank recorded a Net Profit of BD 13.32 million (US$ 35.43 million) compared to BD 11.93 million (US$ 31.73 million) for the corresponding period of the previous year, an increase of 11.7 %.

    

The financial results were approved at the Board meeting held on 9th October 2013 chaired by the Bank’s Chairman Mr. Farouk Yousuf Khalil Almoayyed.  Mr. Almoayyed commented that the Board is pleased with the progress achieved by the Bank while thanking the executive management team and employees for their dedicated service and the Bank’s clients for their valued business relationship and the confidence reposed by them in the institution. 

Commenting on the Bank’s performance and future outlook, Mr. Abdul Razak Abdulla Hassan Al Qassim, Chief Executive Officer & Director said, “The Bank continues to focus on long term sustainable growth and the steady increase in profitability is a result of its ability to quickly adapt to the changing business environment. Bahrain’s economy is expected to show strong growth during 2013 which will provide additional growth opportunities and we are well positioned to contribute further to the development of the Kingdom of Bahrain.”

The Net Interest Income for the nine months period in 2013 was BD 43.61 million (US$ 115.98 million) compared to BD 46.95 million (US$ 124.87 million) for the corresponding period of the previous year, the decrease largely on account of lack of growth in commercial lending opportunities and reduced returns on surplus liquidity due to low short term interest rates. Other income for the nine months period in 2013 was slightly lower at BD 19.71 million (US$ 52.42 million) compared to BD 20.54 million (US$ 54.63 million) for the corresponding period of the previous year mainly due to lower dividend income on the Bank’s equity investments. Operating expenses continue to be closely managed which decreased from BD 20.62 million (US$ 54.84 million) for the nine months period in 2012 to BD 20.45 million (US$ 54.39 million) for the nine months period in 2013. As a matter of prudence, the Bank took a voluntary general loan loss provision of BD 2.27 million (US$ 6.04 million) during the current year to further strengthen the overall financial position.

The Bank continues to make steady progress with the Total Earning Assets (comprising of Treasury bills, Bank placements, Loans & Advances and Investment securities) as at 30 September 2013 at BD 2,514.28 million (US$ 6,686.91 million) compared to BD 2,465.18 million (US$ 6,556.33 million) as at 30 September 2012.  Customer Deposits as at 30 September 2013 stood at BD 2,118.47 million (US$ 5,634.23 million) compared to BD 2,029.69 million (US$ 5,398.11 million) as at 30 September 2012, an increase of 4.4 %. 

The Earnings per share for the nine months of 2013 was 42.6 fils compared to 39.4 fils for the corresponding period of 2012.

Financial Summary (30 September) (in Millions)

 
2013 BD
2013
USD
2012
BD
2012
USD
Loans and advances

874.80

2,326.60

928.67

2,469.87

Investment securities 1,008.32 2,681.70 631.65 1,679.92
Total Earning Assets
(Treasury Bills, Bank Placements,
Trading securities, Loans & Advances and
Investment securities)
2,514.28 6,686.91 2,465.18 6,556.33
Customers’ deposits 2,118.47 5,634.23 2,029.69 5,398.11
         
Total assets 2,650.36 7,048.83 2,594.89 6,901.30
         
Net Profit 40.09 106.62 37.03 98.48
Earnings per share 42.6 fils 11.3 cents 39.4 fils 10.5 cents
Annualised return on average equity 16.3 % 16.3 % 17.0 % 17.0 %