Khaleeji Commercial Bank reports $5.5mln net profit for third quarter

For the first nine months of 2020, net profit was $20.6mln

  

MANAMA: Khaleeji Commercial Bank (KHCB) has swung to profitability, posting a net profit of BD2.1 million for Q3 2020 as against a loss of BD5.4m in Q3 2019.

Earnings per share reached 2.572 fils, compared with minus 6.732 fils for the same period last year.

The capital adequacy ratio during Q3 2020 was 20.79pc.

The bank’s total income increased by 18.3pc from BD3.8m to BD4.5m, whereas profit before impairment allowances for the quarter increased by 235.8pc to BD2.4m, compared with BD0.7m in Q3 2019.

For the first nine months of 2020, net profit was BD7.8m compared to net loss of BD5.2m for the same period of the previous year.

Earnings per share were 9.674 fils, compared to minus 6.481 fils for the same period of the previous year.

The increase in the nine month profit is mainly due to an increase of 9.2pc in total income from BD14.52m to BD15.85m, in addition to a reduction in expenses and impairment allowances as compared to last year.

Profit before impairment allowances increased by 59.2pc to BD8.2m, compared with BD5.1m for the same period in 2019.

Total owners’ equity increased by 68pc from BD85.71m to BD143.87m, and total assets rose by 6.4pc from BD939.75m to BD999.69m.

Total investments including sukuk surged by 58.1pc to BD423.1m, when compared with BD267.6m last year.

Total Financing and Assets Acquired for Leasing decreased by 3.3pc bringing it to BD455m compared with BD470.6m last year. Gross Non-performing Financing Assets decreased to 12.7pc compared with 24.2pc last year. Total Customer Deposits decreased by 5.2pc reaching BD678.1m compared with BD714.9m last year.

Commenting, KHCB chairman Jassim Alseddiqi said, “The bank maintained a positive financial performance. Steps taken to reinforce the position include agreements with the GFH Financial Group to exchange financial and investment assets worth BD46.4m and to guarantee the subscription of a BD60m sukuk.”

Mr Alseddiqi added, “We trust that the bank will continue its growth, by relying on a flexible strategy to tackle the repercussions of the pandemic. The board will support the management in achieving sustainability, reinforcing profitability and returns for shareholders.”

KHCB chief executive Sattam Algosaibi said, “The bank has worked on investing its improved financial position towards new strategic partnerships, enhancing the financing portfolio, investing in sukuk, and continuing digital transformation. We are also striving to enhance customer service quality, and introduce banking solutions and services that meet the aspirations of our clients.”

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