Bahrain Islamic Bank upbeat on growth
Manama, March 25, 2014
Bahrain Islamic Bank (BisB) is optimistic about its growth in the current year, said the bank's chairman.
"BisB met its planned objective to return to profitability last year," chairman Abdul Razak Al Qassim told shareholders at the bank's annual general meeting held at BisB headquarters, Al Salam Tower in Diplomatic Area.
Net profit for the year was BD6.1 million as against net loss of BD36.1 million in 2012, reported the Gulf Daily News, our sister publication.
"Last year also saw a significant strategic development, with National Bank of Bahrain and Social Insurance Organisation each acquiring 25.8 per cent stake in BisB from The Investment Dar Company of Kuwait," he said.
"This major change in the shareholding structure, with the active involvement of new Bahrain-based strategic partners, will generate positive business synergies and financial results," he added.
The bank's chief executive Ebrahim Mohammed said BisB increased its retail banking customer base by one per cent, grew its overall market share by 15 per cent and reduced its cost of funding by 21 per cent.
"Islamic finances grew by 5.4 per cent, while customer deposits increased by 9.5 per cent," he said.
Mohammed said corporate banking also posted a significantly improved performance last year, with the bank increasing its market share by booking new assets, and growing the number of borrowing relationships by 13.2 per cent, which led to fee-based income more than doubling.
The appointment of Dr Sherif El Sayed Ayoub as a director representing the Islamic Development Bank (IDB) and replacing the previous representative Mohammed Al Zarrouq Rajab was also announced during the meeting.
The AGM also confirmed board recommendation not to distribute dividends to shareholders for 2013, and not to pay remuneration to the board of directors for the same period. The Sharia board members have been reappointed for the current year. -TradeArabia News Service