BisB strengthens provisions base in new push
Manama, October 20, 2010
BisB has decided to strengthen its provisions base for the third consecutive quarter to enhance its financial position.
Chairman Khalid Abdullah Al Bassam yesterday announced that BisB board has approved the financial results, where the bank incurred non-cash loss of BD9.9 million ($26.3 million) for the last nine months.
This was after increasing its provisions for the finance and investment portfolios in preparation to face any future challenges and in line with the bank's conservative policy.
Al Bassam said that the board agreed at its meeting yesterday to issue an invitation to hold an ordinary general assembly on February 8, 2011, to discuss a capital increase.
He said that the bank had a solid liquidity ratio of 21 per cent.
Al Bassam expressed his satisfaction on implementing the bank's conservative policy and the careful monitoring of all market movements and to benefit from available opportunities set out in the bank's strategic plan.
It also included the bank's adherence with corporate governance standards and in complying with CBB directives and decisions on disclosure and transparency standards, he said.
Al Bassam stressed the role played by the bank in contributing to the national economy through its participation in various financing viable projects in Bahrain, including those belonging to affiliates of Bahrain Mumtalakat Holding Company.
He also expressed satisfaction on the Moody's Investors Services' official report where BisB received an investment grade with Baa1 rating for long-term and Prime-2 short-term local and foreign currency issuer ratings, with a stable outlook, which confirms the international recognition for BisB's competitive abilities.
Chief executive officer Mohammed Ebrahim Mohammed praised the support received from the board to the steps taken by the executive management in its efforts to build and enhance the financial position of the bank through increasing provisions.
'What is satisfying is that the bank is now depending more on income from financing and other core business, which constitute 78 per cent of total operational income and that the bank income is free of any revaluations or unearned income which confirms the conservative and rightful path followed by it,' he said.
'The bank is continuing its efforts on achieving its objectives by concentrating on developing its core activities, especially in the retail services sector, which has grown by more than 700 per cent in the last three years.
'According to the operational approved plan, we are going to develop more products and other services either through the bank's different outlets like branches, ATMs or through our Internet portal.
'The bank has also started, in the last few months, renovation of some of its branches to meet the needs of its customers,' he said.-TradeArabia News Service