Eskan 9-month net profit up 10pc
Manama, November 12, 2012
Bahrain-based Eskan Bank has posted a net profit of BD6 million ($15.4 million) for the first nine months of the year which represents an increase of 10 per cent over the same period last year.
The bank recorded a net profit of BD2.23 million during the third quarter of 2012 compared with BD2.2 million in the comparative period last year.
The bank has been able to achieve a steady growth during the first nine months of this year on the back of strong mortgage loan disbursements.
"The bank has disbursed new housing loans of BD35.5 million during the nine months compared with BD20.9 million," said chairman Basim bin Yacob Al Hamer.
"Thus the total amount of social loans disbursed since 2005 now stands at BD331 million. The bank has delivered 17 community projects and has started the construction of additional four community projects totalling BD430,000 which is expected to be completed by mid-2013, thereby increasing the total number of retail shops and flats to 230 by mid-2013."
He said the bank's strategy for 2012-2016 is focused on the delivery of 2,500 housing units and the work has started for tendering for consultancy and construction of approximately 1,500 housing units in Hamad Town, Isa Town, and Bander Al Seef to deliver social housing units for low and affordable income groups.
"This is in line with the bank's mission which is to provide effective support to the Housing Ministry to achieve the government housing policy to help social housing groups to purchase their own homes."
He added that the bank is meeting all regulatory requirements and has invested in continuously upgrading its IT Infrastructure and delivery channels to reduce the turnaround time.
The bank's recent initiative of launching an office for the Notary Public at its own premises to process notarisation in house is another indication of the bank's collaboration with the ministries to enhance customer service. Furthermore the bank has been one of the first in Bahrain to be awarded the ISO 9001:2008 Quality Certificate.
The total balance sheet of the bank stood at BD512.5 million on September 30 compared with BD475 million at end of last year.
The bank's loans and advances stood at BD347.24 million, which reflects a growth of 10.8 per cent compared with BD313.2 million at the end of last year.
The bank's equity stands at BD201.8 million at the end of September, compared with BD195.7 million at the end of last year.
The operating expenses for the first nine months at BD3.9 million are lower than BD4.3 million for the same period last year. In line with prudent risk management practices, the bank maintains a nominal collective provision of 1 per cent on the overall retail mortgage non-subsidised loans.
Liquidity continues to be comfortable and the bank has successfully renewed its medium term syndicated loan facility to meet its future funding requirements.-TradeArabia News Service