Bahrain Islamic Bank (BisB) realizes net profit for Q2-2013
16-July-2013
In a press release issued by the Bank, Mr. Abdul Razak Abdulla Al-Qassim - Chairman of the Board of Directors announced that the Board has approved the Financial Statements for the period ended on 30th June 2013 where the Bank registered BD 2.4 million as net profit for the first half of the year after deducting BD 5.7 million as provisions compared to a net loss of BD 15.8 million for the same period last year.
Mr. Abdul Razak Al Qassim explained that BD 8 million in operating profit were realized compared to BD 3.5 million for the same period last year and the Board has taken provisions of BD 5.7 million as a precautionary step against any unforeseeable deterioration in asset values compared to BD 15.9 million for the same period last year. Net profit after provisions for the period reached BD 2.4 million as compared to net loss of BD 15.8 million for the same period last year.
Net operating profit for the three months of the second quarter registered BD 3 million compared with BD1.4 million for the same period in 2012 with BD 1.7 million as provisions compared to the previous figures of 17.8 million in 2012 and net profit of BD 1.3 million compared to the net loss of BD 16.4 in 2012. These results are considered good considering the prevailing economic circumstances especially when we realize that all revenues were generated from the core activities of the Bank.
The Chairman expressed his satisfaction at the results of the Bank for the first six months of the year, especially as this comes after the finalization of the acquisition of The Investment Dar stake in the Bank, equals to 51.6%, equally by National Bank of Bahrain (NBB) and Social Insurance Organization (SIO). A new Board of Directors has been constituted at the General Assembly Meeting which was held on 7th July 2013. Board Committees have also been reconstituted, supplied by the new experienced Board Members. This will greatly contribute to the enhancement of Bank operations and activities.
Mr. Al Qassim then explained that the Board of Directors is contemplating a revision of the existing Bank strategy so as to accommodate the tasks of the coming period and the needed support so as to increase the activities of the Bank and its share of the local market, the diversification of its risks and the increase in its earnings so as to create the greatest possible added value to the shareholders in the coming few years.
From his part Mr. Mohammed Ebrahim Mohammed CEO of the Bank expressed his satisfaction on the completion of the acquisition of The Investment Dar -Kuwait Shares by NBB and SIO. The Bank, now, is more than 76% owned by Bahraini Governmental bodies and Khaleeji entities. This will strengthen the Bank's position and its dealings with other banks and increases its finance and investment opportunities inside and outside the Kingdom of Bahrain.
The CEO then explained that the liquidity indicator for the first half of 2013 reached 18% with notable decrease in the cost of deposits which goes in line with the Bank's policy in this regard. In addition to that, the Bank is nearly fulfilling its CAR and keeping it at the level required by the supervisory bodies.
The CEO then confirmed that what has been accomplished represents the right track for the Bank. The Bank now rely totally on income and fees from finance and core activities which represent more than 90% of total operating income and that this income does not contain any revaluations or unearned profit. This comes as a result the advanced and developed services presented by the Bank and enjoyed by all its clients.
The CEO then announced the soft opening of the Bank's First Financial Mall Arad. It is expected also that the Financial Mall in Budaiya region be opened during the third quarter of this year. This would enhance the Bank's activities and provide the most sophisticated financial services so as to attain the highest degree of customer satisfaction. Every type of financial services is available in these financial malls while offering more working and longer hours of work. The malls also are supported with comfortable parking areas that would contribute greatly to customer comfort.
In conclusion, the CEO expressed his thanks to the Chairman and Members of the Board of Directors for their continued support, and to the respected Sharia Supervisory Board members for their explanations and clarifications of Sharia issues, and to the supervisory and regulatory authorities for their support, cooperation and oversight, and to the shareholders and respected customers for choosing BisB for conducting their banking and financial services activities, and to the staff of BisB for their dedication and hard work in performing their duties.