BBK posts net profit of BD 13.5 million for half-year

However, the previous year's income included capital gain of BD 2.5 million from sale of a strategic investment. If excluded, the core net profit for the current year was higher by BD .088 million or 7% compared to last year.

The net interest income for the first half of 2005 increased by 12.8% to BD 16.5 million from BD 14.6 million for the same period in the previous year, supported by robust growth in underlying loans and customer deposits. Despite very competitive environment, the bank was able to improve its net margins in the first half of the current year. The fees income was higher by 13.5% compared to the last year, despite lower consumer lending related income on account of regulatory restrictions.

Operating costs increased marginally by BD .067 million (6%) in the first six months of 2005 compared to the same period in 2004, reflecting a strong focus on containing cost. The net provisions for the first half of the year reduced considerably to BD 1.1 million, compared to BD 2.7 million in the previous year on account of proactive remedial management and strong focus on credit risk management.

The main balance sheet indicators showed a healthy increase in loans and advances to customers from BD 710 million as at 30th June 2004 to BD 799 million by 30th June 2005, an impressive increase of 12.5%. Customer deposits increased by BD 77 million (9%) to BD 926 million during the same period. The investment securities portfolio grew aggressively to BD 404 million from BD 298 million a year ago.