BBK (Bank of Bahrain and Kuwait) is one of the premier regional financial services enterprise in providing superior products and services of highly quality through innovation, technology and lifelong client relationships. The bank has expanded in its overseas presence in more locations in which it chooses to operate in order to satisfy the diversified needs of clients. Their project and strategy is to gain a competitive advantage by implementing new projects in the Kingdom and abroad. New projects are opening new Financial Malls across the country, acquire and acquisition of business opportunities arises, and therefore be the leading Bank in Bahrain.
The bank have planned to increase its operation abroad through opening it subsidiary company CrediMax in Kuwait market to better support and expand in its credit card services. While their branch in UAE is an investment branch that does not have a commercial banking services; which it differs in Kuwait and India where they have a full commercial bank with all its benefits and activities.
The format of the income statement is in multistep form. The increase in gross profit and net income shows that the bank is growing and it is in the right path within becoming the financial leaders in Bahrain market. The bank is in progress and it shows in its financial statements that the bank is growing and will expand in the future to reach its maximum potential and to benefit from its financial services.
The management may decide to keep a high gross margin from sales and increase sales and the amount of gross margin by increasing operating expenses. You can see that BBK have invested a lot in advertising, by building a new hospital in Muharraq city in the Bank’s name or by the posters on the Highway and commercials in TV.
Even though this shows that most of the banks financing is by creditors, but in a commercial bank as BBK its finance must be from loans, deposits and customer accounts for the bank to operate. But this shows that the creditors are interested in the bank as it pays its creditors with interest. The more debt the bank is the more profit it must earn to ensure the payment of interest to creditors. BBK strong Interest Coverage Ratio of 1.5 shows that it was in no danger of being unable to make interest payments. As the market price is 5 times earnings, investors are paying a high price in relationship to earnings. They do so in the expectations that this bank will continue to be successful. High PE ratios should be interpreted cautiously because low earnings can produce an artificially high PE ratio.
As this is a bank and not company, it does not have most of the liquidity ratios and some other related to inventory and sales ratios.
I personally choose this topic due to their strong project management team that is being reflected in the growth of the country. I work in a competitor Bank, but these facts should be taken into consideration and highly appraise the project management team in BBK. As we studied this course that project management has several benefits to any organization as per the following: a) better efficiency in delivering services b) improved customer satisfaction c) enhanced effectiveness in delivering services d) improved growth and development internally within the organization e) gain competitive advantage f) better flexibility g) increased risk assessment h) increase in quality and quantity.
It would be interesting to see how the coming years will benefit BBK and maybe by this strategy and plan be the leading Financial Institute in the Kingdom.