Sharp increase in BBK 3Q net profits

The net profit for first nine months of the year was BD 20.3 million, an increase of 6.8% when compared to BD 19 million for the same period in the previous year. However, the previous year's income included an extraordinary income of BD 2.9 million from sale of a strategic investment. If excluded for the purpose of comparison, the core year to date net profit for the current year was higher by BD 4.2 million or 26% compared to last year.

Supported by robust growth in the core business, the net interest income for the first nine months of 2005 increased by impressive 18.5%, to BD 25.7 million from BD 21.7 million for the same period in the previous year. The bank continued with prudent policies on taking credit and liquidity risk and yet was able to improve both its net interest margins as well as net interest income. The fee and sundry income was higher by 5% mainly due to higher credit card related income and corporate fees, but offset by material decrease in consumer lending related income on account of regulatory restrictions.

Due to strong emphasis on containing cost, the operating costs for the reporting period were higher only marginally by BD .513 million (3%), as compared to last year. With strong focus on proactive remedial management and credit risk management, the bank was able to reduce its net provisions considerably to BD 2.5 million compared to BD 4.5 million in the previous year.

The balance sheet of the bank grew from BD 1,461 million to BD 1,616 million over the year, an increase of 11%. The main balance sheet indicators grew even more impressively. The customer deposits increased by BD 114.2 million (14%) to BD 922.6 million, compared to BD 808.4 million a year ago. Loans and advances increased from BD 723.2 million to BD 788.1 million, a growth of 9%. The investment securities portfolio grew aggressively to BD 451.4 million from BD 345.5 million a year ago, a growth of 31%.