TIDM93GQ
RNS Number : 6024C
Bank of Bahrain & Kuwait (B.S.C.)
23 February 2022
BBK discloses its financial results for the year ended 31(st)
December 2021
BBK (trading code BBKB.BH) announces its financial results for
the year ended 31(st) December 2021 with a net profit attributable
to the owners of the Bank for the year of BD 53.1 million
representing an increase of 2.1%. The fourth quarter of 2021 net
profit attributable to the owners of the Bank stood at BD 12.6
million representing a decrease of 3.2%.
For the fourth quarter of 2021:
The Bank achieved a net profit attributable to the owners of the
Bank of BD 12.6 million, lower by 3.2% compared to the same period
of last year at BD 13.0 million. The basic and diluted earnings per
share for the fourth quarter amounted to 8 fils compared to 9 fils
reported last year. Total comprehensive income attributable to the
owners of the Bank amounted to BD 11.9 million during the fourth
quarter of 2021, compared to BD 56.6 million during the same period
of last year, representing a decrease of 79.0%.
The drop in net profit is mainly attributable to higher net
provisions which stood at BD 0.8 million, compared to net
recoveries of BD 1.2 million during the corresponding period of
last year, lower fees and commission income by 19.4% to BD 5.0
million (BD 6.2 million last year), lower net interest income by
1.9% to BD 20.1 million (BD 20.5 million last year), lower
investment and other income by 11.1% to BD 2.4 million (BD 2.7
million last year), and higher operating expenses by 2.0% to reach
BD 15.4 million (BD 15.1 million last year) as a result of
continuous investment in strategic initiatives. On the other hand,
the Group's share of profit from associated companies and joint
ventures compensated the performance by BD 1.4 million (loss of BD
2.3 million last year).
The drop in total comprehensive income is attributable to the
decrease in valuation of investment securities during the final
quarter of year 2021.
For the full financial year ended 31(st) December 2021:
The Bank achieved a net profit attributable to the owners of the
Bank of BD 53.1 million compared to BD 52.0 million reported in the
year 2020, an increase of 2.1%. The basic and diluted earnings per
share amounted to 36 fils compared to 35 fils during the previous
year. Total comprehensive income attributable to the owners of the
Bank for the year 2021 amounted to BD 59.5 million compared to BD
28.9 million reported in year 2020, a significant increase of
106.0%.
The growth in net profit attributable to the owners of the Bank
for the full year was supported by lower net provisioning by 48.2%
to stand at BD 2.9 million (BD 5.6 million last year) due to higher
remedial efforts and active management of distressed exposures.
Moreover, the net interest income increased by 2.2% to stand at BD
82.6 million (BD 80.8 million last year) due to active balance
sheet management. Furthermore, the Bank's share of profit from
associated companies and joint ventures increased to BD 1.7 million
compared to a loss of BD 0.1 million last year. This was partially
offset by lower fees and commission income by 18.9% to stand at BD
15.9 million (BD 19.6 million last year), largely due to the impact
of concessionary measures taken in response to COVID-19 to support
the domestic business community and the impact of new regulatory
caps on fees and charges. In addition, the investment and other
income decreased by 6.6% to BD 17.1 million (BD 18.3 million in the
previous year). The operating cost were marginally higher by 0.2%
at BD 60.8 million (BD 60.7 million last year) as the Bank
continued to invest on implementation of various strategic
initiatives and enhancing its banking channels for better customer
experience.
The growth in total comprehensive income was mainly driven by
the increase in valuation of investment securities as financial
markets continued to recover from the shocks resulted from the
COVID-19 outbreak last year.
Total shareholders' equity attributable to the owners of the
Bank stood at BD 542.8 million as of end December 2021, compared to
BD 511.8 million as of end financial year 2020, an increase of
6.1%. The increase is mainly related to current year profit, and
improvement in valuation of investment securities.
Total assets amounted to BD 3,672.7 million as of end year 2021
compared to BD 3,760.4 million reported at end year 2020, a
decrease of 2.3%. This was mainly attributable to drop in treasury
bills by 42.8% to stand at BD 279.2 million (31 December 2020: BD
487.8 million). The core assets of the Bank registered a good
increase with the net loans and advances increasing by 3.3% to
reach BD 1,607.2 million (31 December 2020: BD 1,555.8 million),
and the investment securities increasing by 3.0% to BD 985.8
million (31 December 2020: BD 957.3 million). Total customer
deposits decreased by 1.9% to stand at BD 2,125.6 million (31
December 2020: BD 2,167.4 million), while the loans to customer
deposits ratio stood at a comfortable level of 75.6% compared to
71.8% at the end of December 2020 .
Based on the positive financial results for the year ended
31(st) December 2021, the Board of Directors recommended paying
cash dividends of 20 fils per share and stock dividends of 10% per
share equivalent to 1 share for every 10 shares for the
shareholders registered with the Bank on the record date, subject
to the approvals of the regulatory authorities and the shareholder
at the Annual General Meeting (AGM).
The Board of Directors expressed its satisfaction with the
financial results stating "We are delighted with the good results
and the progress made on implementation of various strategic
initiatives. Year 2021 marked the final year of our strategic
cycle, and we have made an excellent progress in our digital
transformation journey. The Group's next three-year strategic cycle
will be driven by continued innovation in digital products and
platforms, a proactive acquisition strategy, and a sharp focus on
customer-centric service delivery. As we are celebrating our 50(th)
year anniversary, the Board will look to secure sustainable growth
by enhancing the Group's resilience and efficiency, adapting to new
challenges and protecting the Group's capital position, while
continuing to invest in our Environmental, Social and Governance
(ESG) strategy to meet pressing community needs. We extend our
sincere thanks to our shareholders for their continued support and
confidence in a year of growth through resilience. We also thank
our customers for their ongoing loyalty and patronage, and offer
our deepest thanks to the management team and employees for their
enduring hard work and resilience".
Also commenting on the results, Dr. AbdulRahman Saif, BBK's
Group Chief Executive stated, "the strong results achieved by BBK
reflects the Group's resilience, solid business model, and
exceptional ability to adapt to the dynamic environment and
withstand the unpresented challenges posed by the pandemic. During
year 2021, BBK deployed multiple digital platforms and launched
several new products and services to enhance our customers banking
experience. In addition, we continued with our unwavering
commitment to support our customers, the domestic economy and
contribute to the betterment of the societies in which we operate.
We are delighted with customers' positive feedback and the high
engagement rate, and this has resulted the highest growth in BBK
customer base following the introduction of the new digital
asset-based and accounts onboarding and banking apps and launching
a unified mobile application. Supporting the Kingdom's economic
growth, the Bank underwrote major transactions for Bahrain
government entities in tourism and electricity and water sectors.
Global Business Magazine (GBM) and IBS Intelligence both recognized
BBK's significant contribution to Bahrain's financial services
sector in 2021. GBM presented the 'Best Retail Bank' award and IBS
presented the 'Best Transaction Banking Implementation' award. The
Global Economics also bestowed an award, naming BBK as 'Most
Customer-Centric Retail Bank'. In addition, the Bank was honored to
receive an award from World Economic Magazine for 'Best Corporate
Banking COVID-19 Response Initiative' for Bahrain. As we celebrate
our 50th anniversary in year 2022, we look forward to the future
with optimism and we are confident in the Group's ability to
continue delivering attractive value to its shareholders,
supporting its customers and employees, and contributing to the
development and prosperity of the communities in which we conduct
business".
The full set financial statements and the press release are
available on Bahrain Bourse's website.
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END
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