Immediate Release

BBK discloses its financial results for the half year ended 30^th June 2024

BBK (trading code BBK) announces its financial results for the half year ended 30^th June 2024 recording a marginal drop of 1.4% over the net profit of the same period of last year.

For the second quarter of 2024:

The Bank achieved a net profit attributable to the owners of the Bank of BD 16.2 million, 4.1% lower than the net profit achieved during the second quarter of last year of BD 16.9 million. The basic and diluted earnings per share for the second quarter stood at 9 fils, in line with the same period of last year. The lower net profit was mainly due to the higher net provision requirements during the period.

Total comprehensive income attributable to the owners of the Bank amounted to BD 9.7 million during the second quarter of 2024, compared to BD 29.2 million during the same period of last year, representing a decrease of 66.8%. The reduction is mainly due to lower fair value reserve of investment securities during the period.

For the half year ended 30^th June 2024:

The Bank achieved a net profit attributable to the owners of the Bank of BD 36.5 million compared to BD 37.0 million during the same period of last year, marginally lower by 1.4%. The basic and diluted earnings per share amounted to 20 fils compared to 21 fils during the same period of last year.

Total comprehensive income attributable to the owners of the Bank for the first half of 2024 amounted to BD 36.9 million, compared to BD 36.7 million for the same period of last year representing a marginal improvement of 0.5%.

The decrease in net profit was mainly attributable to an increase in net provisioning requirements, and higher interest expense due to customers' deposits growth, compensated by higher net fees and investment income.

Total shareholders' equity attributable to the owners of the Bank as of end of June 2024 increased by 0.3% at BD 613.2 million (31 December 2023: BD 611.1 million).

Total assets as of the end of June 2024 increased by 5.1% reaching BD 4,101.4 million compared to BD 3,901.9 million as of 31 December 2023, due to higher cash and balances with central banks driven by growth in customer deposits and term borrowings.

Based on the achieved interim results, the Board of Directors has decided to distribute an interim cash dividend representing 12.5% (12.5  fils per share) subject to obtaining the necessary regulatory approvals.

Commenting on the Bank's results, the Board of Directors expressed their appreciation stating, "BBK continues to achieve continued success, which is demonstrated by the Bank's outstanding financial performance, reflecting the strong business model which aims to deliver value to its shareholders and customers. We would like to extend our thanks and gratitude to our customers for their loyalty, our shareholders for their support, and management and employees for their dedication and effort".

Also commenting on the Bank's financial results, Dr. AbdulRahman Saif, BBK's Group Chief Executive added "It's our pleasure to share the Bank's strong financial achievements during the year despite the higher precautionary provisioning for the period. The Bank's solid performance and financial position has supported the successful issuance of senior unsecured five-year international bonds valued at USD 500 million to refinance the maturing current international bond. In support to the community, BBK launched its second edition of the "Grow" program, designed to enhance and improve the skills of university graduates who aspire to excel in the banking industry. In terms of employee's support, BBK introduced multiple policies aiming to enhance the workplace experience and promote diversity, inclusion and enhance employees work-life balance".

The full set financial statements and the press release are available on Bahrain Bourse's website.