2014 Third Quarter Results - Press Release

2014 Third Quarter Results - Press Release

Key Highlights:

  • YTD Sept 2014 Net Profit BD 42.16 million, up by 5.2 % over the previous year.
  • Total Earning Assets BD 2,759.26 million, up by 9.7 % over Sept 2013.
  • Total Customer Deposits BD 2,184.14 million, up by 3.1 % over Sept 2013.

   

The Bank recorded a Net Profit of BD 42.16 million (US$ 112.13 million) for the nine months ended 30 September 2014 compared to BD 40.09 million (US$ 106.62 million) for the corresponding period of the previous year, an increase of 5.2%. For the third quarter of 2014, the Bank recorded a Net Profit of BD 13.42 million (US$ 35.69 million) compared to BD 13.32 million (US$ 35.43 million) for the corresponding period of the previous year.

The financial results were approved at the Board meeting held on 30th October 2014 chaired by the Bank’s Chairman Mr. Farouk Yousuf Khalil Almoayyed. Mr. Almoayyed commented that the Board is encouraged by the steady progress achieved by the Bank. He thanked 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 increasing its market presence the results of which are reflected in growth in Earning assets, particularly loans, and the underlying revenue streams. While mixed signals are emerging in terms of growth prospects for the global and regional economies, we will focus on increasing our business to further consolidate our position”.

The Net Interest Income for the nine months period in 2014 was BD 45.31 million (US$ 120.51 million) compared to BD 43.61 million (US$ 115.98 million) for the corresponding period of the previous year, the increase resulting from the growth in Earning assets and better liability management. Other income for the nine months period in 2014 showed a growth of 14.4 % to BD 22.55 million (US$ 59.97million) compared to 19.71 million (US$ 52.42 million) for the corresponding period of the previous year. The growth is achieved as a result of increase in core banking activities, higher dividend income and increased contribution from the Bank’s associates. Operating expenses increased from BD 20.45 million (US$ 54.39 million) in the nine months of 2013 to BD 22.04 million (US$ 58.62 million) in 2014 mainly on account of contribution to the Deposit Protection Scheme besides normal increases to meet ongoing business requirements. The Bank took an impairment provision of BD 3.06 million (US$ 8.14 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, Securities and Investment in Associates) as at 30 September 2014 at BD 2,759.26 million (US$ 7,338.46 million) compared to BD 2,514.28 million (US$ 6,686.91 million) as at 30 September 2013. Customer Deposits as at 30 September 2014 stood at BD 2,184.14 million (US$ 5,808.88 million) compared to BD 2,118.47 million (US$ 5,634.23 million) as at 30 September 2013.

The Earnings per share for the nine months of 2014 was 44.8 fils compared to 42.6 fils for the corresponding period of 2013.

Financial Summary (30 September)

  2014
BD
2014
USD
2013
BD
2013
USD
Loans and advances 913.72 2,430.11 874.80 2,326.60
Investment securities 1,010.62 2,687.82 1,008.32 2,681.70
Total Earning Assets (Treasury Bills, Bank Placements, Loans & Advances, Securities and Investment securities) 2,759.26 7,338.46 2,514.28 6,686.91
Customers’ deposits 2,184.14 5,808.88 2,118.47 5,634.23
Total assets 2,894.10 7,697.07 2,650.36 7,048.83
Net Profit 42.16 112.13 40.09 106.62
Earnings per share 44.8 fils 11.9 cents 42.6 fils 11.3 cents
Annualised return on average equity 14.9 % 14.9 % 16.3 % 16.3 %