Boubyan Bank Financial Results – First Half 2019

Boubyan Bank announced results of its operations for the first half of the current year, which indicate that the bank’s profits (after tax deductions) scored about KD 28.88 million, a rise by KD 3.03 million or by 11.7%, compared with KD 25.84 million for the same period of 2018. The rise in net profits is due to the rise in total operating income by a higher value than the rise in total operating expenses Therefore, the bank’s operating profit rose by KD 2.82 million or by 6.6%, reaching KD 45.21 million versus KD 42.39 million.

In details, total operating income of the bank increased by KD 3.21 million or by 4.5%, and scored KD 73.87 million versus KD 70.66 million for the same period of 2018. This resulted from the rise in all items of the operating income, except for the item of net financing income that decreased by KD 1.04 million or by 1.8%, reaching KD 58.41 million compared with KD 59.45 million. 

On the other hand, total operating expenses increased by a lesser value than the increase in total operating income, i.e. by KD 392 thousand or by 1.4%, and scored KD 28.66 million compared with KD 28.27 million in the same period of 2018. The rise included all items of operating expenses, excluding item of general & administrative expenses that decreased by KD 2.11 million. Provision of impairment decreased by KD 400 thousand, reaching KD 14.96 million compared with KD 15.36 million, a decline rate at 2.6%. As a result, the net profit margin increased to 39.1% of total operating income, compared with 36.6% in the same period of 2018. 

The bank’s financial statements indicate that total assets increased by KD 448.2 million or by 10.3%, and scored KD 4.793 billion versus KD 4.345 billion in the end of 2018. While total assets increased by KD 626.1 million or by 15% if compared with the same period of 2018 when it scored KD 4.167 billion. Item of Islamic financing to customers increased by KD 279.1 million or by 8.6%, and scored KD 3.541 billion (73.9% of total assets) compared with KD 3.262 billion (75.1% of total assets) in the end of 2018. It increased by 13.1% or by KD 409.1 million, when it totaled to KD 3.132 billion (75.2% of total assets) compared with the same period of 2018. Percentage of Islamic financing to customers to total depositors’ account scored 89% compared with 88.2%. Item of cash and balances with banks rose by KD 62.1 million or by 74.1%, reaching KD 145.9 million (3% of total assets) versus KD 83.8 million (1.9% of total assets) in the end of 2018. It also rose by KD 77.1 million or by 111.9%, compared to KD 68.8 (1.7% of total assets) in the same period of the previous year. 

Figures indicate that the bank’s liabilities (excluding total equity) increased by KD 307.5 million or by 8%, and scored KD 4.166 billion compared with KD 3.859 billion in the end of 2018. If compared with total liabilities in the same period of last year, it shows an increase by KD 454.9 million or by 12.3% when total liabilities reached KD 3.711 billion. Percentage of total liabilities to total assets scored 86.9% compared with 89.1%.    

Results of analyzing financial statements calculated on annual basis indicate that most bank’s profitability ratios declined compared with the same period of 2018. The average return on bank’s capital (ROC) decreased to 21.9% compared with 22.2%. Likewise, the average return on equities relevant to the bank shareholders (ROE) decreased to 11.2% versus 13.7%. The average return on assets (ROA) decreased slightly to 1.26% versus 1.27%. While Earnings Per Share (EPS) rose to 9.55 Fils compared with 8.72 Fils. (P/E) scored 30.3 times compared with 28.7 times, as a result of the rise in the share market price by nearly 15.6%, against a less rise in the (EPS) by 9.5% compared to June 30, 2018. (P/B) scored 2.7 times versus 2.6 times.