MANAMA: BBK’s plan to establish a joint venture wholesale investment firm in London is at an advanced stage of implementation, chairman Murad Ali Murad has said.
Talking to the GDN on the sidelines of the bank’s annual and extraordinary general meetings at the Four Seasons Hotel Bahrain Bay yesterday, he said the results of the first year of a new three-year strategic cycle for 2016-18 were good.
The bank recognises that retail customers sometimes need investment products – often of an international nature – and it may be able to introduce them to certain opportunities, added the chairman.
“We are examining the potential for affluent services and continue to assess the kind of services we can offer, as a precursor to introducing them to the local market.”
Reviewing highlights of last year, Mr Murad said in Bahrain BBK was able to join in various government financing requirements by participating in new bond issues.
“The increased yield from these issues has contributed to significant growth in interest income, reinforced by deposit interest rates not moving higher at the same pace, thus containing our cost of funding.
“We are also diversifying our sources of funding, as deposits continue to be very important. We have negotiated with customers to extend the duration of their deposits, in some cases by up to three years.
“We have also tapped the repo market,” he said.
“As a result, our balance sheet profile is stronger, with a spread of maturity dates.”
This, said Mr Murad, enabled the bank to maintain a very comfortable level of liquidity, a factor which we closely monitor – not only its own situation, but overall market conditions such as dollar liquidity.
He said the board of directors has resolved to implement International Financial Reporting Standards (IFRS) 9.
“It does not become effective until 2018, so BBK is one of the first banks in the region, if not the first, to implement it,” added Mr Murad.
The AGM and EGM with a quorum of 80.82 per cent saw shareholder approval for distribution of cash dividends of 30pc of the paid-up capital or 30 fils per share.
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