MANAMA: Khaleeji Commercial Bank (KHCB) has reported a net profit of BD5.709 million for the first half of fiscal year 2020, compared to BD199,000 for the same period of the previous year, with an increase of 2769 per cent.
This had a positive impact on the earnings per share, which reached 6.521 fils, compared to 0.211 fils for the same period of the previous year, an increase of 2991pc.
The increase in net profit is mainly due to the reduction in cost of funding, total expenses and total provision for the period compared to last year.
The financial results also showed an increase in the total owners' equity by 64.81pc reaching BD141.252m, compared to BD85.707m, as well as an increase in total assets by 2.24pc reaching BD960.813m, compared to BD939.752m last year.
Total investments (including sukuk) showed an increase by 38.36pc reaching BD370.2m, compared to BD267.6m last year.
Total financing and asset acquired for leasing decreased by 4pc bringing it to BD451.7m compared to BD470.6m last year.
Total customer deposit decreased by 13.9pc reaching BD615.6m compared to BD714.9m last year.
Furthermore, the bank recorded an increase of 5.98pc in total income reaching BD11.369m during the first six months of 2020, compared to BD10.727m for the same period in 2019.
Despite the economic challenges created by the Covid-19 pandemic on the local market, the bank has maintained a strong capital adequacy ratio of 21.41pc.
Commenting, KHCB chairman Jassim Alseddiqi said, "As a result of an ambitious business strategy that was approved by the board at the end of last year, the bank has recorded a remarkable performance. Strong foundations were laid for this strategy by issuing sukuk worth $159 million as additional tier 1 capital. This has helped the bank develop a business model that keeps pace with current developments and enabled us to take advantage of new opportunities by redirecting the bank's financial and human resources towards sectors and areas that will increase profitability and generate remunerative returns for shareholders."
Mr. Alseddiqi added, "The bank was able to achieve these results in spite of extraordinary circumstances witnessed by the world due to the spread of Covid-19, confirming the bank's strong infrastructure based on stable financial performance and client confidence."
For his part, KHCB chief executive Sattam Algosaibi said, "Over the past six months, the bank's executive management has worked thoughtfully to realise the interim aims of the bank's new strategy. Achieving these results reflects the efficiency and intactness of the plans that the management has put together to strengthen the capital base and develop the business. The sukuk issuance had a great impact on strengthening our financial position which allowed us to engage in new strategic partnerships and promising projects, creating the basis for the bank's growth and profitability."
Mr. Algosaibi added, "The bank will continue to invest in developing eBanking Service Systems and the quality of services provided to clients. We will also work on building more strategic relations with our business partners in order to enter joint-venture projects to enhance our financing portfolio, which will benefit the bank's financial position."
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