Financial statement unveils a twinning total assets viz-a-viz total liabilities & equities for two consecutive years
The Bhutan Development Bank Limited’s (BDBL) profit before tax (PBT) was recorded at Nu 108.76 million (M) at the end of June this year, up from Nu 90.74M at the end of June 2023. This is according to the company’s unaudited financial statement.
Total operating income surged from Nu 271.75M last June to Nu 341.63M this June. It included an increase in net interest income from Nu 230.51M to Nu 253.26M, and other operating income from Nu 27.93M to Nu 76.97M during the course of the year.
The bank’s net fee and commission income, however, slumped slightly to Nu 11.39M from Nu 13.30M last June.
In a corresponding fashion, the total operating expenses also escalated from Nu 181M to Nu 232M, with expenditures made on personnels taking a major chunk of the money. Personnel expenses soared from Nu 138M last June to Nu 177M this June, indicating the importance attached with human resource development. Other expenditures included depreciation on property plant & equipment/amortization of intangible assets of Nu 26M this June, while it only accounted for around Nu 0.4M last June.
However, expenses made on impairment (charges)/reversal for loans and other losses, and other expenses significantly declined. It was Nu 68M and 110M last June, but has gone down to Nu 53M and Nu 23M this June, respectively.
The bank’s total assets were valued at Nu 36,371M, up from last June’s figures at Nu 31,216M approximately. A major part of its assets are in the form of loans and advances to customers, valued at Nu 17,543M, followed by balances with the central bank at Nu 6,967M, and Nu 5,278M as dues from banks.
Other assets included financial investments available for sale, financial investments corporate bonds, property, plant & equipment, intangible assets, and other assets.
Interestingly, the bank’s total liabilities & equities were valued exactly to its assets for two consecutive years. Dues to customers took up a major portion of its liabilities and equities at Nu 29,012M this June and Nu 27,325M last June. Total equities, other liabilities, and dues to banks made up the components of the bank’s total liabilities and equities.
Meanwhile, BDBL was incorporated by the Royal Charter in January 1988, with assistance of the Asian Development Bank (ADB) to function as a development finance institution (DFI). BDBL is registered as a company under the Companies Act (2000 and licensed under the Financial Institutions Act 1992).BDBL now functions as a domestic development bank with cheque facilities after obtaining its banking license in March,2010.
BDBL is the only bank that gives focus to the rural farmers and immediately assumed responsibility for the nation-wide credit program, which mainly provide seasonal, small and medium term loans to the country’s small farmers. It had also commenced its Industrial Lending operations providing term finance and working capital for industrial and Agro-based ventures.
Farmers outreach banking was also introduced to the clients in the rural areas, where the field officers visit the farmers for loan disbursement, collection, deposit, withdrawal etc, at fixed period, place and time. That way, the clients in the rural areas can save their expenses to come to the branch office. The Royal Government of Bhutan (RGoB) owns 96% of it’s paid up share capital.
By Tashi Namgyal, Thimphu
