First Quarter Financial Results 2016 - Press Release
- YTD March 2016 Net Profit BD 17.76 million, up by 4.3 % over the previous year.
- Total Earning Assets BD 2,784.19 million, up by 4.4 % over March 2015.
- Customer Deposits BD 2,216.81 million, down by 1.0 % over March 2015.
The Bank recorded a Net Profit of BD 17.76 million (US$ 47.23 million) for the first quarter of 2016 compared to BD 17.02 million (US$ 45.27 million)) for the corresponding period of the previous year, an increase of 4.3 %.
The financial results were approved at the Board meeting held on 18th April 2016 chaired by the Bank’s Chairman Mr. Farouk Yousuf Khalil Almoayyed. Expressing his satisfaction on the results, Mr. Almoayyed thanked the Bank’s customers for their continued support and confidence in the Bank while appreciating 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 has achieved healthy growth in profitability in the first quarter of 2016 backed by a steady increase in the underlying business. While the external environment remains very challenging, we will continue to focus on adding value to our customers by capitalizing on the Bank’s strong capital and liquidity position.”
The Net Interest Income for the three months period in 2016 was BD 15.78 million (US$ 41.97 million) compared to BD 14.17 million (US$ 37.69 million) for the corresponding period of the previous year. The increase of 11.4 percent is on account of growth in business and better yield on surplus funds. Other income for the three months period in 2016 was BD 10.47 million (US$ 27.85 million) compared to BD 12.09 million (US$ 32.15 million). The decrease in Other Income was due to certain income from investments in the previous year which was not available in 2016 due to prevalent market conditions. However, income from other core activities continue to show steady increase. Operating expenses continue to be closely managed which increased marginally from BD 7.62 million (US$ 20.27 million) for the three months period in 2015 to BD 7.89 million (US$ 20.98 million) for the three months period in 2016. The Bank took impairment provision on investments of BD 0.60 million (US$ 1.60 million) during the current year due to decline in stock market valuations.
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 2,666.74 million (US$ 7,092.39 million) as at 31 Mar 2015 to BD 2,784.19 million (US$ 7,407.76 million) as at 31 Mar 2016. Of particular importance is the growth in Loans & Advances by 36.1 percent to reach BD 1,097.46 million (BD 2,918.78 million) during the same period. Customer Deposits as at 31 Mar 2016 stood at BD 2,216.81 million (US$ 5,895.77 million) compared to BD 2,238.22 million (US$ 5,952.71 million) as at 31 Mar 2015.
The Earnings per share for the three months of 2016 was 15.5 fils compared to 14.9 fils for the corresponding period of 2015.
Financial Summary (31 March)