The Bank of Bhutan Limited (BoBL) recorded a profit before tax (PBT) of Nu 1,508.57 million (M) in 2023, up from Nu 981.93M in 2022. After paying all the taxes, current and deferred, the bank’s net profit for the year stood at Nu 1,002.50M, up from Nu 676.58M in 2022. Total comprehensive income for the year 2023 stood at Nu 1,015.23M.
The bank’s interest income amounted to Nu 6,884.74M in 2023, which was Nu 5,092.02M year earlier. Net interest income also rose to Nu 3,318.52M from Nu 1,341.36M in that space of a year.
Income from fees and commissions stood at Nu 606.69M while net gains from trading of foreign exchange were reflected at Nu 123.00M. Other operating income stood at Nu 181.22M and net non-interest income at Nu 703.25M Consequently, the bank’s total operating income saw a sharp rise from Nu 1,876.33M in 2022 to Nu 4,021.77M as of December 31, 2024.
On the expenditure front, BoBL’s interest expenses floated around Nu 3,566.22M and Nu 3,750.65M in the years 2023 and 2022, respectively. Expenses on fees & commission registered a growth compared with the previous year to Nu 207.66M in 2023 and Nu 113.90M a year ago.
Staff costs, premises costs, and general administrative expenses were some areas in which the bank made huge expenses.
Depreciation on property, plant & equipment rose marginally from Nu 137.36M in 2022 to Nu 143,10M in 2023. Similarly, amortization of intangible assets was registered at Nu 58.39M, down from Nu 63.97M that previous year.
The cost of an item of property, plant and equipment is recognized as an asset if, and only if, it is probable that future economic benefits associated with the item will flow to the bank and the cost can be measured reliably. Property, plant and equipment are initially recognized at cost. The initial cost of property, plant and equipment comprises its net purchase price after deducting any trade discount and rebates, including import duties and non-refundable purchase taxes, and directly attributable costs of bringing the asset to its working condition and location for its intended use. Subsequent costs are included in the asset’s carrying amount or recognized as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the item will flow to the bank and the cost of the item can be measured reliably. The carrying amount of the replaced part is derecognized. All other repairs and maintenance are charged to the statement of comprehensive income during the financial period in which they are incurred.
Impairment reversal on loans and advances inclined from Nu 259.46M in 2022 to Nu 1,383.45M in 2023. The total operating expenses/loss was therefore registered at Nu 2,513.20M, up from Nu 894.40M in 2022.
Basic & diluted earnings per share also rose from Nu 33.42 at the end of December 2023, from Nu 22.55 a year before.
Total cash & cash equivalents at the end of the year 2023 stood at Nu 11,593.71M, a significant decline from Nu 16,879.15M a year ago. It included cash and cash equivalents (Nu 4,019.13M), balances with Central Bank (Nu 5,514.72M), and placements with other banks (Nu 2,059.87M).
According to the bank’s financial statement, amidst economic recovery, the bank showcased enhanced performance by maintaining its Gross Non-Performing Assets (GNPA) at a stable rate of 2.29% as of December 31, 2023, compared to 2.65% in the previous year. The bank’s credit portfolio experienced a decline in growth, with a rate of 21.77% in 2023 compared to 22.75% in the previous year. Of the total growth of 21.77%, normal loans accounted for 92.98%, while special education loans made up 7.02%. The proportion of special education loans decreased in 2023 compared to 7.2% in 2022.
Remunerations, allowances, etc. paid to the chief executive officer (CEO) witnessed an upward trajectory, from Nu 3.34M in 2022 to Nu 4.55M in 2023. These included salary, allowances, bonus, leave encashment, provident fund (PF) and sitting fees.
Similarly, compensation paid to executive directors increased from Nu 8.93M in 2022 to Nu 9.45M last year. However, sitting fees paid to non-executive directors decreased by almost 50% in 2023 compared with 2022.
By Tashi Namgyal, Thimphu
