3rd Quarter Financial Results 2016  - Press Release

3rd Quarter Financial Results 2016 - Press Release

Mr. Farouk Almoayyed Mr. Abdul Razak Abdulla Al Qassim

 

The Bank recorded a Net Profit of BD 46.21 million (US$ 122.90 million) for the nine months ended 30 September 2016 compared to BD 43.36 million (US$ 115.32 million) for the corresponding period of the previous year, an increase of 6.6%. For the third quarter of 2016, the Bank recorded a Net Profit of BD 14.49 million (US$ 38.54 million) compared to BD 13.69 million (US$ 36.41 million) for the third quarter of 2015, an increase of 5.8%.

The financial results were approved at the Board meeting held on 19th October 2016 chaired by the Bank’s Chairman Mr. Farouk Yousuf Khalil Almoayyed. On behalf of the Board, Mr. Almoayyed expressed his satisfaction on the continued progress achieved by the Bank. He thanked the Bank’s clients for their valued business relationship and the confidence reposed by them in the institution and the executive management team and employees for their dedicated service.

Commenting on the Bank’s performance, Mr. Abdul Razak Abdulla Hassan Al Qassim, Chief Executive Officer & Director said, “While business growth continues to be a challenge given the tough external environment, we were able to increase our revenue streams and profitability due to efficient balance sheet management and continued focus on maintaining asset quality.”

The Net Interest Income for the nine months period in 2016 was BD 48.67 million (US$ 129.44 million) compared to BD 43.89 million (US$ 116.73 million) for the corresponding period of the previous year. The increase of 10.9 % in Net Interest Income is attributable to growth in Loans & Advances and better asset liability management resulting in improvement in the net interest margin. Other income for the nine months period in 2016 was BD 25.05 million (US$ 66.62 million) compared to BD 29.07 million (US$ 77.31 million). The decrease in Other Income was due to capital gains on sale of certain fixed rate investments in the previous year which was not available in 2016 due to prevalent market conditions. However, the Bank realized a profit of BD 3.89 million (US$ 10.35 MM) from sale of equity investments during 2016. Operating expenses continue to be closely managed which increased from BD 22.34 million (US$ 59.41 million) for the nine months period in 2015 to BD 23.59 million (US$ 62.74 million) for the nine months period in 2016 mainly to cater to increased business requirements. The Bank’s focus on asset quality resulted in a lower impairment charge on Loans & Advances of BD 1.47 million (US$ 3.91 million) during the current year. Continued decline in stock market valuations resulted in an impairment charge on equity investments of BD 2.45 million (6.52 million) during 2016.

Total Earning Assets (comprising of Treasury bills, Bank placements, Loans & Advances, Securities and Investment in Associates) stood at BD 2,716.47 million (US$ 7,224.65 million) as at 30 September 2016 compared to BD 2,797.66 million (US$ 7,440.59 million) as at 30 September 2015. Customer Deposits as at 30 September 2016 stood at BD 2,111.72 million (US$ 5,616.28 million) compared to BD 2,276.89 million (US$ 6,055.56 million) as at 30 September 2015.

The Earnings per share for the nine months of 2016 was 40.4 fils, compared to 38.0 fils for the corresponding period of 2015, with a healthy Average Return on Equity of 16.6 %.

Financial Summary (Millions) 30 September 2016 30 September 2015
 
BD

US$

BD

US$
Loans and advances 1,023.96 2,723.30 990.93 2,635.45
Investment securities 1,052.57 2,799.39 1,103.25 2,934.18
Total Earning Assets (Treasury Bills, Placements,
Loans & Advances, Investment
Securities and Investment in associates)
2,716.47 7,224.65 2,797.66 7,440.59
Customers’ deposits 2,111.72 5,616.28 2,276.89 6,055.56
Total assets 2,849.86 7,579.41 2,963.00 7,880.32
 
Net Profit 46.21 122.90 43.36 115.32
 
Earnings per share 40.4 fils 10.7 cents 38.0 fils 10.1cents
Annualised return on average equity 16.6 % 16.6 % 15.5 % 15.5 %