TIDM93GQ
RNS Number : 7443Q
Bank of Bahrain & Kuwait (B.S.C.)
22 February 2023
BBK discloses its financial results for the year ended 31(st)
December 2022
BBK (trading code BBKB.BH) announces its financial results for
the year ended 31(st) December 2022 with a net profit attributable
to the owners of the Bank of BD 64.4 million, representing an
increase of 21.3% over the previous year of BD 53.1 million. The
net profit attributable to the owners of the Bank for the fourth
quarter of 2022 stood at BD 19.9 million, compared to BD 12.6
million reported during the same period of last year, at an
increase of 57.9%.
For the fourth quarter of 2022:
The Bank achieved a net profit attributable to the owners of the
Bank of BD 19.9 million, 57.9% higher compared to the net profit of
BD 12.6 million achieved during the corresponding period of last
year. The basic and diluted earnings per share for the fourth
quarter amounted to 12 fils compared to 8 fils during the previous
year.
Total comprehensive income attributable to the owners of the
Bank amounted to BD 54.7 million during the fourth quarter of 2022,
compared to BD 11.9 million during the same period of last year,
representing a significant increase of 359.7%. This was led by the
positive movement in fair value reserve of investment securities by
BD 32.8 million, compared to a drop in valuation of BD 2.4 million
during the same period of last year, as well as higher reported net
profit.
The increase in net profit was supported by a robust growth in
net interest income by 67.7% from BD 20.1 million reported during
the fourth quarter of last year to BD 33.7 million during the same
period of year 2022. This was partially offset by higher net
provision requirements (BD 3.0 million for the fourth quarter of
current year, compared to BD 0.8 million during the same period of
last year representing 275.0% increase).
For the full financial year ended 31(st) December 2022:
BBK achieved a net profit attributable to the owners of the Bank
of BD 64.4 million compared to BD 53.1 million achieved during the
previous year, an increase of 21.3%. The basic and diluted earnings
per share amounted to 39 fils compared to 32 fils for the prior
year.
The total comprehensive income attributable to the owners of the
Bank for the year 2022 amounted to BD 84.5 million, compared to BD
59.5 million reported during last year, an increase of 42.0%. The
increase is mainly related to positive market valuations, and
higher net profit from core activities.
The increase in net profit was mainly attributable to increase
in net interest income from BD 82.6 million achieved during last
year to BD 102.5 million during the current year, an increase of
24.1%. The increase in net interest income was mainly due to the
interest rates hikes during the year as well as the active balance
sheet management followed by the bank. On the other hand, the net
provision charges increased by 175.9% from BD 2.9 million to BD 8.0
million due to the Bank's prudent risk management approach, and to
strengthen the Bank's financial resilience given the challenging
economic environment. In addition, operating expenses increased by
6.1% in 2022 to BD 64.5 million (last year: BD 60.8 million) due to
BBK's continuous investment in its human capital, and
implementation of various strategic and business initiatives aimed
at providing our customers with the best banking experience.
Total shareholders' equity attributable to the owners of the
Bank increased to BD 596.3 million as of end of December 2022,
compared to BD 542.8 million as of end of the financial year 2021,
an increase of 9.9%. The increase is mainly related to the current
year's profit, and improvement in investment securities' market
valuations.
Total assets increased by 2.2% to reach BD 3,753.9 million as of
end of December 2022 compared to BD 3,672.7 million reported at end
of financial year 2021. Cash and balances with central banks
increased by 46.4% to stand at BD 416.9 million (2021: BD 284.8
million), while investment securities dropped by 7.3% to BD 914.2
million (2021: BD 985.8 million). Customer deposits continued to be
our core source of funding, standing at BD 2,116.6 million as of
end of December 2022 (2021: BD 2,125.6 million) representing a
slight decline of 0.4%.
Based on the positive financial results for the year ended 31st
December 2022, the Board of Directors recommended paying cash
dividend of 25 fils per share and stock dividend of 5% per share
equivalent to 5 shares for every 100 shares held for the year 2022,
also the Board of Directors recommended an additional exceptional
one time cash dividend of 5 fils per share on the occasion of the
celebration of BBK's 50(th) anniversary for the shareholders
registered with the Bank on the record date, subject to the
approvals of the regulatory authorities and the shareholders at the
Annual General Meeting (AGM).
The Board of Directors expressed its satisfaction with the
financial results stating "BBK's strong performance during the year
once again demonstrated the Group's ability to withstand
challenging economic cycles as well as its commitment to achieve
the targets outlined in the new 2022-2024 strategy. This solid
performance and the steady improvements to the Bank's operations
reflect BBK's clear vision, robust business model, and adaptive
strategies, as well as the high standards of professionalism among
our team. The banking industry has evolved, market conditions have
fluctuated, and customers' expectations have shifted significantly
over the past five decades, however BBK's commitment to delivering
innovative services and contributing to Bahrain's economic and
social growth remains steadfast. Backed by the trust of our
customers and support of our stakeholders, we are confident that
BBK can achieve even greater success in 2023 and beyond. Our thanks
to BBK's shareholders for their continued support and confidence,
to our customers for their ongoing loyalty and patronage, and to
the management team and employees for their unwavering
dedication".
Also, commenting on the results, Dr. AbdulRahman Saif, BBK's
Group Chief Executive stated "BBK's impressive results in 2022
highlight the efficacy of our forward-looking strategy,
conservative approach to risk management, and diversified
portfolio. The celebration of BBK's 50th anniversary was a
highlight of the year. For five decades, we have remained steadfast
in our support for the economic and societal growth of the
communities in which we operate. We rolled out a series of
initiatives aimed at changing lives for the better, and to give
back something special to thank our customers and the Kingdom for
the unwavering support we have received along the way. In addition
to being our Golden Jubilee year, 2022 saw steady improvements in
our performance and progress on implementation of various strategic
and business initiatives. We introduced new services as part of our
digital transformation journey, and reaffirmed our commitment to
sustainability with the launch of our inaugural sustainability
report. Digitization and innovation are vital to providing the best
possible service in a rapidly evolving digital landscape.
Accordingly, we continue to take strides in our digital
transformation journey, cognizant that it is a continuous process.
During year 2022, we launched our fifth 24/7 BBKPLUS Digital Branch
concept at Souq Al Baraha in Diyar Al Muharraq, and new and
improved digital banking platforms namely "BBK Mobile Banking" and
"BBK Online Banking". Also, we were the first bank in Bahrain to
provide Samsung Wallet service.
In addition, BBK continues to prioritize Environmental Social
and Governance (ESG) initiatives according to identifiable and
measurable targets. Amongst other measures, we launched a special
loan facility for business owners who aim to switch partially or
entirely to renewable energy sources. This reflects the Bank's firm
commitment to helping the Kingdom reach its 2060 net-zero emission
target and to promote sustainable development within the Bank and
throughout the Kingdom of Bahrain.
We look forward to building on the momentum in 2023 as we
continue our digital transformation journey, while working towards
achieving all our 2022-2024 strategy objectives".
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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