Bahrain Islamic Bank Nets BD 3.1 Million of Profits in Mid-2016

23-August-2016

Bahrain Islamic Bank (BisB) has announced a net profit of BD 3.1 million for the six months period ended 30 June 2016, compared to BD 8.2 million of net profits, this represents a drop of 62.4% in the net profits, which included non- recurring profits in the same period of last year, as well increase of operational expenses including staff cost, by 18.5% and impairment provision to overcome any decrease in the market value of the finance or investment. Moreover, the bank has reported BD 1.4 million net profits for the three months ended 30 June 2016, compared to BD 5.1 million for the same period of 2015, a drop of 73.3%.

The mid-2016 results showed an increase in the total assets by 3.7%, reaching BD 1,012 million, compared to BD 976 million recorded in December 2015, while financing assets rose by 8.16%, totaling BD 662 million. At the same time, Tejoori Account and other savings accounts rose by 5.3% compared to last year, while current accounts rose by 10.4% compared to 2015.

The Bank recorded a drop in the total net revenues, which totaled BD 18.7 million for the first six months of the current year, compared to BD 21 million for the same period of 2015, a drop of around 10.7%. On the other hand, the total net revenues for the three months ending June 2016 totalled BD 9.1 million, against BD 11.2 million during the same period of 2015, a drop of 18.9%. Despite the economic challenges facing the region, the Bank maintained a strong capital adequacy of 18.1%.

BiSB Board of Directors approved the financial results during the meeting held on Wednesday 10 August 2016.

Commenting on these results, Chairman Dr. Esam Abdulla Fakhroo said despite the drop in the Bank's net profits during the first half of 2016, our plans to restructure the Bank are proceeding afoot, by implementing the 5-year plan which was launched in the year 2014. Indicators make the Board optimistic about the constructive steps undertaken by the Bank's Executive Management, and that growth in the operations of the corporate and retail sectors is witnessing a remarkable improvement compared to last year.

For his part, Mr. Hassan Amin Jarrar, the Bank's Chief Executive Officer, said: "The Bank has passed through difficult conditions over the past few years, and that the restructuring of this well-established and reputable bank will take a considerable period of time. However, despite the major challenges which we are facing, the Bank is following up a well-studied approach based on international principles which are recognized by international banks, and they are geared towards moving BiSB to the required level suitable to the Bank which is the first Islamic Bank in Bahrain."

The Chief Executive Officer added: "This year witnessed many changes, mainly the imminent launch of the first modern digital branch in the Diplomatic Area, which is a new concept in e-banking services in Bahrain, the branch will contribute to the growth and development of the banking industry and to the enhancement of the Bank's efforts which aim at turning it into a bank conducting its business activities in accordance with the highest international standards, as well as re-evaluation of the performance of all the Bank's departments for the purpose of enhancing the staff's efficiency and improvement of the Bank's hi-tech systems and internal procedures for financing and credit, which will contribute to the improvement of the performance in customer service and to increasing the return for shareholders."

In conclusion, the Chairman of the Bank's Board of Directors and the Chief Executive Officer expressed their appreciation and gratitude for the Board members for their continued support and backing, and for their Eminencies  the members of the Shari'a Supervisory Board for the explanation and interpretation of Shari'a banking issues, and for the supervisory authorities for their co-operation and follow up. They also expressed their deep thanks to the shareholders and customers for choosing the Bank to conduct their banking transactions, and for all the Bank's staff members for their dedication and hard work.