Khaleeji Commercial Bank (KHCB), a Bahrain-based Islamic lender, said its net profit for 2012 soared to BD751,000 ($1.9 million) from BD518,000 the previous year boosted by its retail and commercial banking business growth.

In 2012, the bank's consumer finance portfolio grew by 108.9 per cent and corporate banking portfolio by 19.2 per cent to post an overall commercial banking growth of  25.3 per cent, said top KHCB officials at its annual general meeting held on Tuesday at Regency Intercontinental Hotel.

Addressing the members,  KHCB board chairman Dr Fuad Al Omar said, "While the regional economic and business environment continues to remain difficult, the bank made a net profit of BD751,000 for the year. The bank continued to execute its articulated business model which focuses on expanding its retail and commercial banking business."

Dr Al Omar said the bank has achieved considerable progress in accomplishing key milestones in this regard.

"The total number of branches increased to seven with the opening of two more branches. The Bank continued to recruit Bahrainis for its expanding business”.

KHCB, said the top official, has focused on expanding and diversifying its business while maintaining conservative liquidity and capital positions.

“Capital adequacy ratio of 28.4 per cent (regulatory requirement is 12 per cent) and liquid asset ratio of 19.2 per cent indicate strong financial position with sufficient capacity for growth in future. The bank continues to improve its profitability with increase in revenue from core operations and control of costs,” he noted.

On the future plans, Dr Fuad said, KHCB will continue to aggressively grow its retail and commercial banking business organically while exploring other options.

“We are committed to expanding the network of branches and distribution channels to reach a wider and larger number of customers. At the same time, we will also consider other options including acquisition of other entities or asset portfolios as well as alliances with other financial institutions,” he added.-TradeArabia News Service