Board of Directors Report

Financial technology (FinTech) has become an integral part of the banking business.

In the name of Allah, the Most Beneficent, the Most Merciful. Prayers and Peace be upon the Last Apostle and Messenger, Our Prophet Mohammed, His Comrades and Relatives.

On behalf of the Board of Directors, it is my privilege to present the annual report and consolidated financial statements of Bahrain Islamic Bank (BisB) for the year ended 31 December 2017. The five-year plan for the Bank is now in its fourth year, and our Back to Basics strategy continues full steam ahead with positive momentum showing significant improvements in nearly all aspects of the Bank’s business.

Despite a turbulent 2017 throughout the region, BisB’s key performance indicators have all reflected positive developments. The Bank was able to generate quality earnings of BD 42.9M and a net profit figure of BD 10.1M, a 20% improvement over 2016. Earnings per share amounted to 10.14 fils compared to 8.41 fils in 2016.

Financing assets grew to BD 740.7M, an 11% increase over the same period last year. The Bank’s risk appetite remains prudent, evidenced by setting aside provisions of BD 12.5M vs. BD 12.8M last year, affirming a disciplined and cautious approach. Recoveries and write back, on the other hand, showed a healthy BD6.3M compared to BD 3.1M last year.

All the major businesses in the Bank performed well, showing healthy financing asset growth and profitability with a marked increase in the Bank’s investments in GCC Sukuks.

Net Profit for the year


Dr. Esam Abdulla Fakhro

Chairman of the Board

Our commitment to investing in local talent continues through strengthening of the Bank’s senior management team to ensure proper succession in the future. I am proud to declare that we have recruited the first Bahraini female as Head of Retail Banking in the history of BisB and our resolve towards diversity in our work force by promoting qualified Bahraini women is stronger than ever.

Financial technology (FinTech) has become an integral part of the banking business, adding non-banks to the already crowded field of competitors in our industry. BisB is gearing towards a digital world by investing in technology, introducing new e-payment products to be delivered through the Bank’s recently launched best-in-class mobile banking.

The challenges of 2017 will continue in 2018. Stagnant oil prices, growing public debt throughout the region and a fluid political and social environment will add to the uncertainty. Despite that, we believe that Bahrain remains an attractive investment destination, especially in the FinTech space, which the government of Bahrain and the Central Bank have been promoting recently.

I remain optimistic toward the future of BisB in the coming years. A lot has been accomplished in the past three years to bring the Bank back to health by re-introducing and adhering to the basics. However, much remains to be done to maintain our momentum.

On behalf of the shareholders, the Directors express their grateful thanks and sincere appreciation to His Majesty King Hamad bin Isa

Al Khalifa - the King of Bahrain, to His Royal Highness Shaikh Khalifa bin Salman Al Khalifa – the Prime Minister, to His Royal Highness Shaikh Salman bin Hamad Al Khalifa – the Crown Prince, Deputy Supreme Commander and First Deputy Prime Minister. The Directors also extend their thanks to all Government ministries and authorities – especially the Central Bank of Bahrain and the Ministry of Industry, Commerce & Tourism, for their steadfast guidance, kind consideration and constant support.

The Directors’ also acknowledge the advice and supervision of BisB’s Sharia’a Supervisory Board, as well as the unstinting dedication and service from the management and staff of the Bank, whose commitment contributes so much to the success of the organization. To our business partners and loyal customers, we are grateful to each and every one for their unstinting valued support and confidence in Bahrain Islamic

Dr. Esam Abdulla Fakhro

Chairman of the Board