Bahrain Islamic Bank (BisB) realizes BD 9.3 million net profit

11-February-2015

BisB announced that it has realized BD 9.3 million as net profit for the year ended on 31st December 2014, compared to BD 6.1 million for the previous year, an increase of 52%. The Bank has registered net profit of BD 2.8 million in the last quarter of 2014 as compared to net profit equal to BD 2.3 million for the same period last year, i.e. an increase of 22%.

Mr. Abdul Razak Al Qassim – Chairman of the Bank then explained that in the year ended on December 2014 the Bank registered BD 43 million as gross income compared to BD 36 million for last year, i.e. an increase of 19%. The Board of Directors has decided to set aside provisions amounting to BD 12 million during the year as compared to BD 10 million for last year.

Operating profit reached BD 14 million in last quarter of 2014 compared to BD 9 million for the same period last year, and net provisions of BD 5.8 million in last quarter of 2014 as compared to BD 1.9 million for the same period last year, and net profit of BD 2.8 million as compared to net profit of BD 2.3 million for same period last year.

In a Press Release issued by the Bank yesterday Wednesday 11th February, Mr. Abdul Razak Abdulla Hassan Al Qassim – Chairman of the Board of Directors announced that the Board has approved the Bank Financials for the year ended on 31st December 2014, where the Board has expressed its satisfaction with the positive results which highlights the strong financial performance achieved by the Bank and reflect on the success of the Business Plan during the year.

The Chairman also explained that the Bank has kept a strong balance sheet during 2014, and good liquidity ratios, which confirms that management of the Bank is keen to pursue a conservative and prudent business policy on all aspects of operations and finances availed by the Bank.

Mr. Abdul Razak Al Qassim then confirmed that the Bank is continuing on executing its new five year Strategy which has been approved after working on it together with Boston Consultant Group. The implementation of this strategy has resulted on positive progress on all facets of business in the Bank.

On his part, Mr. Mohammed Ahmed Janahi the Acting CEO has hailed the positive results of this year which has been attained by the Grace of Allah Almighty. The results reflect on the strong financial position of the Bank where the Bank has relied fully on revenues and fees from finances and major activities which represent more than 82% of all gross revenues. Persistent efforts are on full force to expand the customer base of the Bank as a natural result of the distinguished services presented by the Bank for all its clients.

The Acting CEO then went on to explain that Islamic Finances witnessed an increase of 17% and current accounts increased by 30% as compared to 2013, in addition to the decrease in deposit expense by 32% in spite of the fierce competition in the market, and the ability of the Bank to retain its customers through its loyalty programs. The Bank stands on solid ground as far as its customer base is concerned for their confidence in the Bank and in its distinguished services.

The Bank, thanks to its prudent and conservative policy, entertains a strong liquidity ratio of 14% and CAR of 15.6%. The Board has studied the Bank’s future plans beyond the implementation of the new Basle 3 standard in its first phase starting January 2015 and taking proper actions. This is in addition to the growth of return on equity to 11.8% compared to 8% last year, and return on assets of 1% as compared to 0.7% last year.

The Acting CEO then explained that the Bank in pursuing its plan of developing its services and products for its customers was able, according to the established business plans, to inaugurate two financial malls to service its customers in Riffa and Hamad Town. This has completed the plan of providing model financial malls that present universal banking services and provide an amenable working environment that satisfies its customers and which will enhance the Bank share of business and customers base.

The Acting CEO then expressed his satisfaction that the Bank has received the “Best Islamic Bank Award” in the Kingdom of Bahrain for 2014 bestowed on it by the International Finance Magazine (IFM), a prestigious British publication specialized in banking industry news and analysis. This award has been conferred upon the Bank due to its positive contribution in the development of Islamic Finance in Bahrain and its keenness to provide excellent services to its customers plus the remarkable array of its products, and the progress attained during its life in business plus other important variables and criteria.

In conclusion, the Chairman and the Acting CEO expressed their thanks to the Members of the Board of Directors for their continued support, and to the respected Sharia Supervisory Board members for their fatwas and clarification of Sharia issues, and to the supervisory and regulatory authorities for their support and cooperation and oversight, and to the shareholders and respected customers for choosing BisB for conducting their banking and financial services activities, and to all staff of BisB for their efforts and dedication in performing their duties.