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BMI Bank posts $15m in losses

MANAMA, November 13, 2014

BMI Bank, a subsidiary of Al Salam Bank – Bahrain, has posted a loss after provisions of BD5.7 million($15 million) for the first nine months of the year as compared to a net profit of BD88,000 during the same period last year.

The net loss for the third quarter stood at BD2.59 million as compared to a net profit of BD34,000 achieved during the corresponding period last year, said a statement.

The total operating income for the first nine months was BD18.19 million as compared to BD16.5 million last year, an increase of 10 per cent, it said.

The total assets and total advances stood at BD74 million and BD37 million respectively, as against BD73 million and BD37 million at the end of last year.

Jamal Al-Hazeem, director and chief executive officer, said: “At BMI Bank, we continue to maintain an excellent capital adequacy ratio of over 15 per cent with strong liquidity and a portfolio of unique and innovative products and services.

“In line with our commitment towards maintaining higher levels of prudency in our business, we have increased our provisions on certain corporate customers and as a result of these non-cash charges, our preliminary results reflect a loss after provisions of BD2.59 million for the third quarter of the year and BD5.7 million for the first nine months of the year.

“To ensure our customers benefit from the best profit rates, products and services through our merger with Al Salam Bank Bahrain, we have continued to focus on streamlining our business as we convert it to a sharia compliant one. As part of this process, the branch timings across both BMI Bank and Al Salam Bank- Bahrain branches in Bahrain, have recently been revised to reflect standardised working hours to better serve our customers across the network.

“We also recently announced an extension to our successful alliance with Tamkeen that provides Sharia Compliant financing for enterprises including startups, within the local private sector through a fourth contribution of BD10 million expanding our total contribution towards the scheme to BD40 million.

“Our aim is to offer our customers a dynamic and well-diversified one-stop financial service solution backed by a strong paid-up capital base, eminent shareholders and a wider range of innovative Sharia Complaint solutionsas we finalise the operational aspects of our business combination with Al Salam.” - TradeArabia News Service




Tags: Bahrain | BMI | profit | Bank | loss |

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