2nd Quarter Financial Results 2017 - Press Release
Net Profit of BD 31.74 million (US$ 84.41 million) for the 1st Half of 2017
The Bank recorded a Net Profit of BD 31.74 million (US$ 84.41 million) for the six months ended 30 June 2017 compared to BD 31.72 million (US$ 84.36 million) for the corresponding period of 2016. During the 1st half of 2017, the Bank achieved an Operating Profit of BD 38.01 million (US$ 101.09 million), an increase of 6.6 percent over BD 35.66 million (US$ 94.84 million) achieved during the corresponding period of 2016. For the second quarter of 2017, the Bank recorded a Net Profit of BD 17.00 million (US$ 45.21 million), a strong increase of 21.8 per cent compared to BD 13.96 million (US$ 37.13 million) for the corresponding period of the previous year.
The financial results were approved at the Board meeting held on 19th July 2017 chaired by the Bank’s Chairman Mr. Farouk Yousuf Khalil Almoayyed. On behalf of the Board, Mr. Almoayyed expressed his satisfaction on the results recorded 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, Mr. Jean Christophe Durand, Chief Executive Officer said, “The Bank’s focus on new business initiatives and increasing the customer footprint resulted in a strong improvement in the Operating Profit for 2017. As a result, the Bank recorded a marginal increase in Net Profit despite the need to take impairment on certain credit exposures due to financial difficulties faced by some borrowers”.
The Net Interest Income for the six months period in 2017 was BD 34.95 million (US$ 92.95 million) compared to BD 31.82 million (US$ 84.63 million) for the corresponding period of the previous year, an increase of 9.8 %. The increase in Net Interest Income is attributed to growth in earning assets and better asset liability management leading to an improvement in net interest margin. Other income for the six months period in 2017 was BD 18.67 million (US$ 49.65 million) compared to BD 19.70 million (US$ 52.39 million) for 2016. The decrease in Other Income was due to certain income from sale of investments in the previous year while such opportunities were not available during the current year. However, core banking activities continue to show steady increase with Commission from such activities recording a strong growth of 17.1 per cent. Operating expenses continue to be closely managed which decreased from BD 15.86 million (US$ 42.18 million) for the six months period in 2016 to BD 15.61 million (US$ 41.52 million) for the six months period in 2017. As a result, the Cost to Income Ratio improved from 30.8 per cent in 2016 to 29.1 per cent in 2017. The Bank took impairment provision of BD 6.27 million (US$ 16.68 million) during the current year due to financial difficulties faced by some borrowers and the resultant inability to meet their obligations.
Total Earning Assets (comprising of Treasury bills, Bank placements, Loans & Advances, Investment Securities and Investment in associates) remained steady at BD 2,824.61 million (US$ 7,512.26 million) as at 30 June 2017 compared to BD 2,817.38 million (US$ 7,493.03 million) as at 30 June 2016. Customer Deposits stood at BD 2,143.04 million (US$ 5,699.57 million) as at 30 June 2017 compared to BD 2,195.90 million (US$ 5,840.16 million) as at 30 June 2016.
The Earnings per share for the six months of 2017 was 25.2 fils, similar to 2016.
|Financial Summary (Millions)||30 June 2017||30 June 2016|
|Loans and advances||1,054.35||2,804.12||1,028.85||2,736.30|
|Total Earning Assets (Treasury Bills, Bank Placements, Loans & Advances, Investment Securities and Investment in associates)||2,824.61||7,512.26||2,817.38||7,493.03|
|Earnings per share||25.2 fils||6.7 cents||25.2 fils||6.7 cents|
|Annualised return on average equity||15.3 %||15.3%||17.9 %||17.9 %|