Khaleeji Commercial Bank posts $20mln net profit

Total income for Q4 2020 increased by 34.8%

  
Bahraini traders are pictured in Bahrain Bourse in Manama, Bahrain, November 5, 2020.

Bahraini traders are pictured in Bahrain Bourse in Manama, Bahrain, November 5, 2020.

REUTERS/Hamad I Mohammed

MANAMA: Khaleeji Commercial Bank (KHCB) has reported net profit of BD209,000 for Q4 2020, as against a loss of BD9.7 million in the same period in 2019.

Earnings per share were 0.26 fils, compared with minus 12.09 fils for the same period of the previous year.

Total income for Q4 2020 increased by 34.8 per cent to BD6.79m, compared with BD5.04m in Q4 2019.

Profit before impairment allowances increased by 1740.3pc to BD4.06m compared with BD221,000 in Q4 2019.

For the year ended December 31, 2020, net profit was BD7.9m compared with net loss of BD15m in the previous year.

The increase in net profit is mainly attributed to an increase of 15.8pc in total income to BD22.6m from BD19.6m in 2019, and decrease in expenses and provisions compared with 2019.

Earnings per share were 9.94 fils, compared with (-18.56) fils in the previous year.

Profit before impairment allowances increased by 128.4pc to BD12.2m, compared with BD5.4m in 2019.

Total shareholders’ equity increased by 65.5pc to BD141.8m in 2020, from BD85.7m in 2019.

Growth in assets was 8.1pc to BD1015.6m from BD939.8m in 2019, with growth in liquid assets, which currently constitute 24.41pc of total assets, while capital adequacy was 20.31pc.

The bank maintained a healthy liquidity coverage ratio of 198.28pc and net stable funding ratio of 103.65pc for 2020.

Income attributed to shareholders was 7.02pc and income attributed to assets was 0.81pc, allowing the bank to invest in liquidity through investments in sukuk, characterised by high income and low risks.

These investments resulted in a 33.9pc increase in the sukuk portfolio to BD261.1m in 2020, from BD195.1m in 2019.

Commenting, KHCB chairman Jassim Alseddiqi said, “The bank has recorded a remarkable performance despite the uncertainty the global market scene is witnessing. Strong foundations were laid by issuing sukuk worth BD60m as additional tier 1 capital wand an agreement to exchange financial and investment assets worth BD46.4m, were both signed with GFH Financial Group.”

“We trust that the bank will continue growth by applying its strategy of adapting to various variables imposed by the pandemic, and the accompanying financial and economic repercussions. The board will spare no effort in providing the necessary support to the management in achieving sustainability, reinforcing profitability, and attaining remunerative returns for the shareholders,” he added.

The bank’s chief executive Sattam Algosaibi said, “In 2020, the bank achieved strategic goals, based on providing innovative financial solutions, quickly responding to market changes, and understanding the needs and requirements of clients, which under the direction of the Central Bank of Bahrain, included steps to mitigate the effects of Covid-19, including the deferment of finance instalments, raising the maximum limit for credit cards and debit cards, and supporting companies and SMEs. The bank has recorded a net profit. Despite the current challenges, KHCB was able achieve growth in assets, while capital adequacy reached 20.31pc, while maintaining liquidity coverage ratio of 198.28pc and net stable funding ratio of 103.65pc.”

He added: “The bank will invest its improved financial position towards enhancing the financing portfolio for individuals and companies, investing in sukuk, continuing digital transformation at an accelerated pace, and developing innovative solutions. KHCB is also striving to enhance service quality, and to introduce banking services that meet the aspirations of individuals and corporates.”

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