Khaleeji Commercial swings to $1.3m profit
Manama, March 5, 2012
Khaleeji Commercial Bank (KHCB), an Islamic bank based in Bahrain, went firmly back into the black last year with a profit of BD518,000 ($1.3 million) against a loss of BD6.5 million the previous year.
'The year 2011, which was the seventh year since the bank commenced operations, was full of challenges,' chairman Dr Fuad Al Omar told shareholders at the bank's annual meeting at the Gulf Hotel yesterday.
'The economic environment and business market in the region are still difficult in view of the continued global financial and political crisis and the continued downturn in the targeted economic activities,' Dr Al Omar noted.
'Our business model has proved to be successful, and we have managed to realise the goals set as part of the bank's new strategy,' he said.
'We have focused on private commercial banking in the retail market in Bahrain by expanding the commercial banking activities and retail finance, and expanding the local branches network and improving electronic distribution challenges. In addition, we have increased the bank's share in the corporate banking activities and expanded investment activities in regional markets by benefiting from the factors of success the bank possesses,' he added.
'KHCB has maintained its strong liquidity position, where liquid assets represent 26.1 per cent of its total assets, in addition to a comfortable capital adequacy position standing at 27.1 per cent.'
'At the same time, KHCB has increased its balance sheet by 6.8 per cent to reach BD447 million and total income by 17.7 per cent,' he stated.
'The consumer finance portfolio has been increased to BD14.9 million, with the bank's income from commercial banking activities increasing by 4.4 per cent and customer deposits increasing to 21.6 per cent, or BD227 million reflecting the market's confidence in the bank's products and services.'
Dr Al Omar predicted that challenges facing the banking sector will continue during the year 2012. 'KHCB will not be immune to these challenges,' he said.
'However, the board is aware that there are many promising opportunities to expand the bank's activities. The main challenges facing the bank in the medium term is to become a pioneering banking institution in the markets where it operates.'
'To this end, we have to continue expanding and exploring more options and opportunities available, including increasing commercial banking business.'
'We believe that KHCB has laid down a strong foundation through which it can implement the new strategic plan and explore new potential opportunities,' he added.-TradeArabia News Service