The bank’s half yearly performance in terms of net profit have increased by 8.78%
Despite a poor economic situation, the half yearly performance of Bank of Bhutan Limited (BoBL), the country’s largest commercial bank saw a significant progress this year as compared to the previous year.
BoBL’s total deposits for January to June 2013 increased by 31.66% as compared to the same time period last year. The company recorded a total deposit of Nu 28,955.54mn which stood at Nu 21,992.68mn in 2012.
The positive development is attributed to “increase in current deposit by Nu 5,774. 67mn, largely on account of funds received from India for projects account and increase in fixed deposit by Nu 717.15mn,” a news release from the bank stated.
The company’s net profit increased by 8.7% while total assets recorded a 28.63% increase this year. BoBL’s profit after tax for the year currently stands at Nu 381.68mn and total assets worth more than Nu 36mn.
Net profit has increased because of an increase in total revenue in 2013 by 11.13% and also owing to the low loan provision of Nu 40mn required as compared to last year’s Nu 133.73mn.
The bank’s half year revenue, mainly driven by increased interest on loan, bonds and government treasury bills stands at about Nu 1070mn, an increase from last year’s Nu. 962.51mn.
Interest on loan has increased by Nu 46.09mn in 2013 and interest from bonds and treasury bills increased by Nu 30.59mn.
Interest from loans and advances saw an improvement of 5.74% which amounted to Nu 849.31mn, an increase from Nu. 803.22mn last year. This has been attributed to the boost in interest income from medium term loan by Nu 63.13mn.
BOBL has already signed a memorandum of understanding with five big utility providers which includes Bhutan Power Corporation (BPC), Bhutan Telecom Limited (BTL), National Pension and Provident Fund (NPPF), Thimphu Thromde and BOBL credit card. The utility payment is live for BPC and BTL.
BoBL’s risk management system was also adopted, implemented and finalized during the bank’s recent board meeting.