Khaleeji Commercial Bank reports net profit

MANAMA: Khaleeji Commercial Bank (KHCB) has announced its third quarter financial results ended 30 September 2021, reporting a net profit of BD2.83 million attributable to the shareholders of the bank, compared to BD2.07m for the same period of the previous year, an increase of 37.04 per cent.

The earnings per share reached 3.526 fils, compared to 2.572 fils for the same period of the previous year.

The increase in the net profit is mainly attributed to the increase the bank achieved in total income before return to investment account holders to reach BD12.71m during the third quarter of this year, compared to BD11.50m for the same period in 2020.

Third quarter total income increased by 39.99pc to BD6.28 million from BD4.48m to in third quarter of 2020.

Profit before impairment allowances increased by 54.98pc during the third quarter of this year to BD3.69m, compared to BD2.38m for the same period last year.

For the first nine months of 2021, the bank has reported net profit of BD8.84m attributable to shareholders of the bank, compared to BD7.78m for the same period of the previous year, an increase of 13.68pc.

The earnings per share reached 7.268 fils, compared to 9.674 fils for the same period of the previous year, and the increase in net profit is mainly attributed to reporting an increase in the income before return to investment account holders to BD41.15m during the first 9 months of this year, compared to BD34.82m for the same period in 2020, an increase of 18.19pc, in addition to the increase in total provisions for the same period compared to last year.

Total income increased by 37.90pc during the nine months to BD21.86m, compared to BD15.85m for the same period last year.

Profit before impairment allowances increased by 69.07pc during nine months to BD13.84m, compared to BD8.19m for the same period last year.

The financial results also showed an increase in the total owners’ equity (excluding non-controlling interest) by 3.76pc reaching BD147.14m, compared to BD141.81m, as well as an increase in total assets by 3.22pc to BD1,048.25m from BD1,015.59m last year.

Total investments in sukuk showed an 8.33pc increase to BD282.88m, compared to BD261.13m last year.

Total financing and asset acquired for leasing increased 3.69pc to BD463.99m from BD447.47m last year.

Total deposits increased by 3.08pc to BD798.66m from BD774.81m last year.

KHCB chairman Jassim Alseddiqi said: “The positive results achieved during this period come as an upshot of the bank’s unwavering commitment to implementing its effective strategic plans, which delivered an improved performance at various operational levels. These outcomes also reflect the sound policies adopted by the bank to consolidate its base in order to reach the desired goals, mainly the diversification of revenue sources and following a balanced approach to managing risks and costs, with the aim of increasing growth and sustaining profitability.”

KHCB CEO Sattam Algosaibi said: “We have made tangible progress in implementing our plans during the first 9 months of 2021. This includes accelerating digital transformation and continuing to offer innovative banking solutions and services to enhance our valued clients’ experience, individual and corporate, both of which have had a noticeable impact on our financial performance. We are confident that our performance will witness further progress during the coming period. Moreover, we are optimistic that the execution of the economic recovery plan, which was recently announced by the Respected Government, will have significant effects on various sectors, including Banking and Finance, as it is one of the main supportive sectors to the national economy, owing to its clear contributions to the kingdom’s GDP.”

Mr Algosaibi added: “We look forward to achieving more successes for the bank and continuing to provide the best banking services and products, in a way that ensures sustainable profitability and realises rewarding returns for our shareholders. This will allow us to take steady strides in maintaining the leading position KHCB holds in the kingdom.”

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