Jamal Al Hazeem
BMI posts $8m H1 loss after merger expense
Manama, August 10, 2014
BMI Bank, a subsidiary of Al Salam Bank Bahrain, has reported a loss after provisions of BD3.1 million ($8.1 million) for the first half ended June 30, as against a net profit of BD540,000 for the same period last year.
This was due to the provision of a one-off merger-related operating expense taken during the first quarter of the year reported the Gulf Daily News, our sister publication.
Total assets and total loans and advances at the end of the period stood at BD0.76 billion and BD0.37 billion, respectively, as against BD0.73 billion and BD0.37 billion at the end of last year.
Total operating income for the half year saw an increase of more than six per cent at BD11.46 million when compared with BD10.78m reported during the corresponding period last year.
Customer deposits grew from BD0.53 billion as at the end of last year to BD0.55 billion at the end of the second quarter of the year at an annualised growth rate of 9.5 per cent.
Net profit for the second quarter stood at BD1.1 million as against BD0.20 million reported during the corresponding period last year.
"Our performance reflects a robust and profitable core business with positive momentum achieved across all our business units within Bahrain, Qatar as well as at our associate in Kenya, Gulf African Bank (21.33 per cent owned by BMI Bank) through the support of both existing and new customers," BMI Bank director and chief executive Jamal Al Hazeem said.
The bank has made considerable progress in finalising operational aspects of its business combination with Al Salam Bank Bahrain, he added.
As part of the immediate set of benefits rolled out, customers of both banks can now take advantage of a waiver on charges on cash withdrawals and balance inquiries made at more than 46 BMI Bank and Al Salam Bank Bahrain ATMs across the country.
Additionally, transfer of funds between both banks is now free of cost.
"BMI Bank continues to maintain an excellent capital adequacy ratio of over 15 per cent and a loan to customer deposit ratio of 68 per cent with strong liquidity and a portfolio of unique and innovative products and services.
"Going forward, we will continue to focus on growing our retail and wholesale business along with customer numbers during the year in line with our strategy of consolidating our position as a solid retail bank in Bahrain ensuring genuine value for all our stakeholders," he added. – TradeArabia News Service