2nd Quarter Financial Results 2015  - Press Release

2nd Quarter Financial Results 2015 - Press Release

Dr Essam Fakhro  Mr. Abdul Razak Abdulla Al Qassim

Key Highlights:

  • YTD June 2015 Net Profit BD 29.67 million, up by 3.2 % over the previous year.
  • Cost to Income Ratio of 29.53 %, compared to 31.77 % for the previous year.
  • Loans & Advances BD 923.27 million, up by 8.3 % over June 2014.
  • Total Customer Deposits BD 2,227.68 million, up by 2.3 % over June 2014.

The Bank recorded a Net Profit of BD 29.67 million (US$ 78.91 million) for the six months ended 30 June 2015 compared to BD 28.74 million (US$ 76.44 million) for the corresponding period of the previous year, an increase of 3.2 %.  For the second quarter of 2015, the Bank recorded a Net Profit of BD 12.65 million (US$ 33.64 million) compared to BD 12.12 million (US$ 32.23 million) for the corresponding period of the previous year, an increase of 4.4 %.

The financial results were approved at the Board meeting held on 13th July 2015 chaired by the Bank’s Deputy Chairman Dr. Essam Abdulla Fakhro. Expressing his satisfaction on the results, Dr. Fakhro reiterated the Board’s commitment to continue to meet the expectations of all stakeholders. 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 results for  the first half of 2015 is encouraging and we have seen a positive trend in all business areas, in particular loan growth.  We hope the growth momentum in the overall market will continue and our strong capital and liquidity position places us in an advantageous position to further enhance our leadership position in the domestic market.”

The Net Interest Income for the six months period in 2015 was BD 29.10 million (US$ 77.39 million) compared to BD 30.51 million (US$ 81.14 million) for the corresponding period of the previous year.  The decrease is mainly due to lack of quality lending opportunities in the early part of the year and lower yield on surplus funds as a result of strong domestic liquidity. Other income for the six months period in 2015 increased by 40.1 % to reach BD 21.90 million (US$ 58.24 million) compared to 15.63 million (US$ 41.57 million) for the corresponding period of the previous year, the growth driven by increase in core banking activities, higher investment income and increased dividend on the Bank’s equity investments. Operating expenses continue to be proactively managed with the Cost to Income Ratio showing an improvement from 31.77 % in the previous year to 29.53% for the current year.  The Bank took a loan loss provision of BD 6.27 million (US$ 16.68 million) during the current year based on an assessment of the loan portfolio and to further strengthen the overall financial position.

The core business of the Bank continues to show steady growth with the Total Earning Assets (comprising of Treasury bills, Bank placements, Loans & Advances, Investment Securities and investment in associates) as at 30 June 2015 at BD 2,731.20 million (US$ 7,263.83 million) compared to BD 2,718.79 million (US$ 7,230.82 million) as at 30 June 2014.  Customer Deposits continue to show steady growth and stood at BD 2,227.68 million (US$ 5,924.68 million) as at 30 June 2015 compared to BD 2,177.56 million (US$ 5,791.38 million) as at 30 June 2014, an increase of 2.3 %. 

The Earnings per share for the six months of 2015 improved to 28.6 fils compared to 27.8 fils for the corresponding period of 2014.

Financial Summary (30 June) (in Millions)
  2015
BD
2015
US$
2014
BD
2014
US$
Loans and advances 923.27 2,455.51 852.49 2,267.26
Investment securities 969.18 2,577.61 1,011.98 2,691.44
Total Earning Assets (Treasury Bills, Bank Placements, Loans & Advances, Investment securities & Investment in Associates) 2,731.20 7,263.83 2,718.79 7,230.82
Total assets 2,884.66 7,671.97 2,857.69 7,600.24
Customers’ deposits 2,227.68 5,924.68 2,177.56 5,791.38
Total Equity 383.45 1,019.81 378.01 1,005.35
 
Net Profit 29.67 78.91 28.74 76.44
 
Earnings per share 28.6 fils 7.6 cents 27.8 fils 7.4 cents
Annualised return on average equity 15.6 % 15.6 % 15.5 % 15.5 %