Bahrain Islamic Bank (BisB) has realised an increase of 67 per cent in net profit at BD4 million ($10.6 million) for the first half of the current year when compared with BD2.4 million for the same period last year.

This is after deducting BD3.7 million as net provisions, whereas net provisions for the same period last year were BD5.7 million, said a report in the Gulf Daily News (GDN), our sister publication.

Operating profits for the period have remained unchanged at BD7.8 million.

Islamic finances saw an increase of 13 per cent during the first half from the figure as of December last year and sukuk increased by 97 per cent.

Current accounts increased 38 per cent similarly, in addition to the continued decline in the cost of funds compared with same period of last year.

Net operating profits for the second quarter were BD2.6 million as against BD3 million for the same period last year whereas net provisions for impairment were BD1 million as against BD1.7 million earlier.

Net profit for the second quarter was BD1.5 million as against BD1.3 million earlier.

Bank chairman Abdul Razak Al Qassim said the board of directors has approved a five-year strategy up to 2018 in collaboration with Boston Consulting Group, the implementation of which is underway.

"Key objectives of the new strategy are growth of core activities, disposal of non-performing investment assets and tapping opportunities for entering new markets," he added.

Chief executive Mohammed Ebrahim Mohammed said the results are good taking into consideration the current difficult economic situation, especially that all revenues were generated from core activities.

"Whatever has been achieved is a reflection of the new strategy with full reliance on revenues and fees from finances and major activities has generated 82 per cent of the operating revenues," he said.

"All revenues are free from revaluations or unearned profits, with the exception of the successful exit from some investment portfolios and the selling of lands, and the semi-final exit from listed equities with a net gain of BD3 million," Mohammed added. - TradeArabia News Service