Record profits for BBK

Moreover, if the extraordinary income of BD 2.9 million from sale of a strategic investment in the previous year was excluded for the purpose of comparison, the core net profit for the current year increased sharply by BD 6.5 million or 29% compared to last year. The net profit for 4th Quarter of 2005 increased considerably to BD 9.1 million, an increase of 36% over the same period last year.

"Despite the competitiveness of the domestic and regional markets, BBK has achieved excellent operating results for the year 2005," stated Dr. Farid Al Mulla, General Manager CEO.

"Improvements across almost all our core business activities enabled BBK to post record net profits, grow our asset base, and enhance return to our shareholders. At the same time, we improved our service to customers by introducing new and innovative products, expanding the range of delivery channels, and strengthening the Bank's operating structure,"

said Dr Al Mulla. He also added that the Bank responded to increasing market competition by continuing to diversify its operations through new strategic alliances and new business opportunities.

The banks net interest income for the year grew sharply by BD 6.2 million, an increase of 21% over the last year, reflecting a strong underlying core business growth. The net interest margin continued to improve, despite Bank's prudent policies on credit and liquidity risk. The average customer loans and advances increased by over 10% compared to last year. At the same time, the Bank also saw its average customer deposits grow by 14.5% during the year.

The operating costs for the year increased marginally by BD 0.55 million or 2.3%, reflecting Bank's success in containing cost. It continued to focus strongly on proactive remedial management and credit risk management, which resulted in reduced net provision change of BD 2.4 million, compared to BD 4.3 million last year.

The basic earnings per share for the year increased sharply from 45 fils to 52 fils, reflecting improvement in returns for the shareholders.

Based on the above results, the Board of Directors has decided to recommend a cash dividend of 35 fils per share, along with 1 bonus share for every 8shares held.