Net profit up by 7.4 % to BD 28.74m ($76.44m)
The Bank recorded a Net Profit of BD 28.74 million (US$ 76.44 million) for the six months ended 30 June 2014 compared to BD 26.77 million (US$ 71.20 million) for the corresponding period of the previous year, an increase of 7.4 %. For the second quarter of 2014, the Bank recorded a Net Profit of BD 12.12 million (US$ 32.23 million) compared to BD 11.94 million (US$ 31.76 million) for the corresponding period of the previous year.
The financial results were approved at the Board meeting held on 21st July 2014 chaired by the Bank’s Deputy Chairman Dr. Essam Abdulla Fakhro. On behalf of the Board, Dr. Fakhro expressed his satisfaction on the results and the consistent progress achieved over the years. 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 are a confirmation of the Bank’s ability to deliver strong results backed by a sound financial position. The operating results are encouraging with both interest and non interest income streams showing steady growth. With a positive outlook for the domestic economy, we are well placed to further improve our position given the strong domestic franchise and capital base.”
The Net Interest Income for the six months period in 2014 was BD 30.51 million (US$ 81.14 million) compared to BD 28.36 million (US$ 75.43 million) for the corresponding period of the previous year, an increase of 7.6 %. The improvement in Net Interest Income is attributable to the growth in earning assets and better liability management resulting in reduction of funding costs. Other income for the six months period in 2014 increased by 10.0 % to reach BD 15.63 million (US$ 41.57 million) compared to BD 14.21 million (US$ 37.79 million) for the corresponding period of the previous year, the growth driven by increase in core banking activities, higher dividend on the Bank’s investments besides increased contribution from Investment in Associates. Operating expenses continue to be proactively managed with the Cost to Income Ratio showing a marginal improvement from 31.85 % in the previous year to 31.77% for the current year. The Bank took impairment provision on loans of BD 2.17 million (US$ 5.77 million) during the current year 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, Securities and investment in associates) as at 30 June 2014 at BD 2,718.79 million (US$ 7,230.82 million) compared to BD 2,491.03 million (US$ 6,625.08 million) as at 30 June 2013, a growth of 9.1%. Customer Deposits as at 30 June 2014 stood at BD 2,177.56 million (US$ 5,791.38 million) compared to BD 2,083.73 million (US$ 5,541.84 million) as at 30 June 2013, an increase of 4.5 %.
The Earnings per share for the six months of 2014 improved to 30.5 fils compared to 28.5 fils for the corresponding period of 2013.