Bahrain Islamic posts $6.4m net profit in H1
Manama, July 17, 2013
Bahrain Islamic Bank has reported a net profit of BD2.4 million ($6.36m) for the first half of the year, after deducting BD5.7 million as provisioning.
This compares with a net loss of BD15.8 million for the same period last year, reported the Gulf Daily News, our sister publication.
Provisioning against unforeseen deterioration in asset values for the same period last year was BD15.9 million.
The bank realised BD8 million in operating profit as against BD3.5 million earlier.
Net profit for the second quarter of the year was BD1.3 million compared with net loss of BD16.4 million for the same period last year.
Net operating profit for the quarter was BD3 million compared with BD1.4 million earlier.
Provisioning for the quarter was BD1.7 million as compared to the corresponding previous figure of BD17.8 million.
"The results are good considering the prevailing economic circumstances," said BisB chairman Abdul Razak Al Qassim, adding that all revenues were generated from core banking activities.
Following the acquisition by National Bank of Bahrain and Social Insurance Organisation of The Investment Dar's 51.6 per cent stake in BisB, a new board was constituted at the general assembly on July 7.
Board committees have also been reconstituted.
"The board is contemplating a revision of the existing strategy to increase the bank's activities, local market share, diversification of risks and earnings," Al Qassim said.
Chief executive Mohammed Ebrahim said that with more than 76 per cent of stake in the bank now with Bahraini government bodies and Khaleeji entities, its position and dealings with other banks are strengthened.
"This will increase finance and investment opportunities inside and outside the kingdom," he added.
"Liquidity indicator for the first half was 18 per cent with a notable decrease in the cost of deposits, in line with policies. The bank is nearly fulfilling its capital adequacy ratio requirements.
"Income and fees from finance and core activities now represent more than 90 per cent of total operating income which does not contain any revaluations or unearned profit," Ebrahim said.
"The bank's first financial mall in Arad had been opened, with another mall on similar lines due to be launched in Budaiya during the third quarter of the year.
"This would enhance activities and provide sophisticated financial services, helping us attain the highest degree of customer satisfaction," he said.
"Every type of financial service will be available in these malls along with more staff and longer hours of work," Ebrahim added. – TradeArabia News Service