2014 First Quarter Results - Press Release

2014 First Quarter Results - Press Release

Key Highlights:

  • YTD March 2014 Net Profit BD 16.62 million, up by 12.1 % over the previous year.
  • Total Earning Assets BD 2,606.59 million, up by 4.9 % over March 2013.
  • Cost to Income Ratio of 29.07% improved from 30.11% for the previous year.

   

The Bank recorded a Net Profit of BD 16.62 million (US$ 44.20 million) for the first quarter of 2014 compared to BD 14.83 million (US$ 39.44 million) for the corresponding period of the previous year, an increase of 12.1 %.

The financial results were approved at the Board meeting held on 15th April 2014 chaired by the Bank’s Chairman Mr. Farouk Yousuf Khalil Almoayyed. Expressing his satisfaction on the steady progress achieved by the Bank, Mr. Almoayyed thanked the Bank’s customers for their continued support and confidence in Bank. He also appreciated the efforts of the Bank’s executive management team and the employees for their dedication.

Commenting on the Bank’s performance and future outlook, Mr. Abdul Razak Abdulla Hassan Al Qassim, Chief Executive Officer & Director said, “The Bank achieved a strong set of financial results on account of steady growth across all business and revenue streams.

The Net Interest Income for the three months period in 2014 was BD 15.57 million (US$ 41.41 million) compared to BD 14.21 million (US$ 37.79 million) for the corresponding period of the previous year, an increase of 9.6 % as a result of increase in earning assets and effective asset liability management. Other income for the three months period in 2014 was BD 9.51 million (US$ 25.29 million) compared to BD 9.04 million (US$ 24.04 million) for the corresponding period of the previous year contributed by increase in normal business activities and higher income from the Bank’s equity investments. Operating expenses continue to be closely managed which increased from BD 7.00 million (US$ 18.62 million) for the three months period in 2013 to BD 7.29 million (US$ 19.39 million) for the three months period in 2014. The Bank’s continues to focus on efficiency management resulting in the Cost to Income Ratio improving from 30.11 % for the three months period in 2013 to 29.07 % for the three months period in 2014. As a matter of prudence, the Bank took a voluntary general loan loss provision of BD 0.63 million (US$ 1.68 million) during the current year to further strengthen the overall financial position.

Steady progress has been achieved in the underlying business activities of the Bank with the Total Earning Assets (comprising of Treasury bills, Bank placements, Loans & Advances, Investment securities and Investment in Associates) increasing from BD 2,484.67 million (US$ 6,608.16 million) as at 31 Mar 2013 to BD 2,606.59 million (US$ 6,932.42 million) as at 31 Mar 2014. Customer Deposits as at 31 Mar 2014 stood at BD 2,099.01 million (US$ 5,582.47 million) compared to BD 2,074.69 million (US$ 5,517.79 million) as at 31 Mar 2013.

The Earnings per share for the three months of 2014 was 17.7 fils compared to 15.8 fils for the corresponding period of 2013.

Financial Summary (31 March)

  2014
BD
2014
USD
2013
BD
2013
USD
Loans and advances 855.65 2,275.66 879.85 2,340.03
Investment securities 985.72 2,621.60 705.17 1,875.45
Total Earning Assets (Treasury Bills, Bank Placements, Loans & Advances, Investment securities & Investment in Associates) 2,606.59 6,932.42 2,484.67 6,608.16
Customers’ deposits 2,099.01 5,582.47 2,074.69 5,517.79
Total assets 2,745.91 7,302.95 2,618.76 6,964.79
         
Net Profit 16.62 44.20 14.83 39.44
         
Earnings per share 17.7 fils 4.7 cents 15.8 fils 4.2 cents
Annualised return on average equity 18.3 % 18.3 % 18.7 % 18.7 %