Immediate Release
BBK discloses its financial
results for the year ended 31st December 2023
BBK (trading code BBK) announces its
financial results for the year ended 31st December 2023
with a net profit attributable to the owners of the Bank of BD 74.5
million, representing an increase of 15.7% over the net profit of
the previous year.
For the fourth quarter of
2023:
The Bank achieved a net profit
attributable to the owners of the Bank of BD 17.9 million, 10.1%
lower than the net profit of BD 19.9 million achieved during the
corresponding period of last year. The basic and diluted earnings
per share for the fourth quarter amounted to 10 fils compared to 12
fils during last year. The decrease in net profit was mainly
attributable to the higher share of loss from associates and joint
ventures.
Total comprehensive income
attributable to the owners of the Bank amounted to BD 24.0 million
during the fourth quarter of 2023, compared to BD 54.7 million
during the same period of last year, representing a decrease of
56.1%. This is mainly attributable to the decrease in the fair
value reserve of investment securities during the year.
For the full financial year
ended 31st December 2023:
BBK achieved a net profit
attributable to the owners of the Bank of BD 74.5 million compared
to BD 64.4 million achieved during the previous year, representing
an increase of 15.7%. The basic and diluted earnings per share
amounted to 43 fils compared to 37 fils during the prior
year.
The total comprehensive income
attributable to the owners of the Bank for the year 2023 amounted
to BD 84.4 million, compared to BD 84.5 million reported during
last year. The decrease is mainly related to a lower increase in
market valuations during the year, which was compensated for by
higher net profit from core activities.
The increase in net profit was mainly
attributable to higher net interest income due to active balance
sheet management in addition to the well positioning of the Bank's
liquidity and assets toward market conditions and interest rates.
On the other hand, the share of income from associate companies and
joint ventures has decreased, while operating expenses increased
mainly due to BBK's strong belief in investing in its human
capital, as well as efforts towards implementing various strategic
and business initiatives which aim to provide customers with better
banking experience.
Total shareholders' equity
attributable to the owners of the Bank increased to BD 611.1
million as of end of December 2023, compared to BD 596.3 million as
of end of the financial year 2022, an increase of 2.5%. The
increase is mainly related to the improvement in investment
securities' market valuations as well as net profit recorded during
the year.
Total assets increased by 3.9% to
reach BD 3,901.9 million as of end of December 2023 compared to BD
3,753.9 million reported at end of financial year 2022. The
increase is mainly related to cash and balances with central banks
and the treasury bills portfolio.
Based on the positive financial
results for the year ended 31st December 2023, the Board
of Directors recommended paying cash dividend of 30 fils per share
(including 10 fils interim dividend paid earlier) and stock
dividend of 5% per share equivalent to 5 shares for every 100
shares for the year 2023 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).
Commenting on the financial results,
the Board of Directors expressed their satisfaction stating, "BBK's
outstanding financial performance reflects the bank's ability to
perform despite the challenging economic environment, which is
demonstrated with the net profit nearing pre-COVID-19 levels. BBK's
robust business model, strategic initiatives, and the capabilities
of the team all contribute to its success. As the final year of our
current 2022-2024 strategic cycle approaches, the focus remains on
achieving the strategic goals which emphasize digital
transformation, sustainability and enhancing customer
experience".
Dr. AbdulRahman Saif, BBK's Group
Chief Executive added "BBK's remarkable achievement during 2023
expressed with a strong financial performance, highlights the
ongoing efforts to achieve its strategic goals and provide the best
services to our customers. Despite the low economic growth as
compared to pre-COVID level, BBK has continued to excel through
balance sheet optimization and achieving various initiatives aimed
at enhancing customer experience, which was reflected in strong
financial results driven mainly from core business
activities".
"Such initiatives included
introducing "BBK Business" platform which provides digital services
and onboarding capabilities to Corporates and Small & Medium
Enterprises (SMEs), launch of wealth management platform which is
integrated with our unified mobile application, and expanding our
digital presence, through opening new Sitra Branch which
provides a self-service BBKPLUS Zone equipped with cutting-edge
digital services aimed at easing the customers'
experience".
The full set financial statements and
the press release are available on Bahrain Bourse's
website.