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Bahrain Islamic Bank profit up 84pc

Manama, October 15, 2008

Bahrain Islamic Bank (BIsB) saw net profit rise 84 per cent in the third quarter of the year up from $46 million for the third quarter of last year to $85 million.

"This excellent performance is attributed to the balance in diversifying investment risk, proper application of the bank's financial policies and extreme care in not involving the bank's financial resources and investments in high risk transactions that could undermine the bank's financial position," said BIsB chairman Khalid Abdulla Al Bassam, according to a report in our sister publication, the Gulf Daily News.

In spite of the prevailing global financial crisis due to the US mortgage credit crisis, the bank was able, through the application of the Sharia compliance standards laid down by its Sharia Supervisory Board, to properly select its banking transactions to achieve positive results, he said.

In addition, the bank enjoys a high level of liquidity that would enable it to go forward with confident steps.

Operating income rose 63 per cent to $153 million. The increase was due to the growth in retail and corporate finance and attractive returns from the bank's diversified investments.

Total income from investment accounts amounted to $32 million.

"The bank enjoys a strong financial position as its total assets increased by 47pc during third quarter of 2008 amounting to $2.5 billion," said chief executive Mohamed Ebrahim Mohamed.

"Such increase focused on finance transaction and continuous growth and diversification of investments in general.

"These figures also show a significant growth in investment portfolios of all types to reduce risks according to the bank's general policy.

"The bank also launched new products to raise its share of Islamic finance and deposits in the local market. Further new products are set to be launched before the end of this year."

He added that the bank's executive management was closely monitoring developments on the world financial markets and the difficulties experienced by certain international banks due to the pursuit of certain policies.

The bank's management believes that compliance with the rules and principles of Sharia provided the solution for all crises and difficulties. - TradeArabia News Service

 




Tags: BiSB | Sharia Supervisory Board | Sharia compliance |

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