Bahrain Islamic Bank Increases Provisions for Nine Month Period Ended on 30th Sep, 2009
01-October-2009
In a press release issued by Bahrain Islamic Bank yesterday (Tuesday), BIsB Board Chairman Mr. Khalid Abdulla Al Bassam said the Bank continues to pursue its conservative policies and complies with the directives of the regulatory authorities by setting aside more provisions for bad debts and finance transactions, especially these related to the Saad and Algosaibi Groups.
He added the Bank has opted to increase the write off provisions rather than announcing more positive financial results owing to the particular nature of the current economic period, making the Bank announce unrealized losses arising from the write off provision for the 3rd quarter amounting to BD1.3 million, hence the Bank made a net profits of BD816,000 for the period ended on 30th September, 2009.
Al Bassam added in spite of the Bank’s conservative policies during the recent period of this year in monitoring the consequences of the global financial crisis, the Bank’s balance sheet achieved a 7% growth compared with December 2008. He noted that the current period showed signs of gradual return of economic growth in the regional countries which would have a positive impact on the Bank’s future business and results.
Meanwhile, BIsB’s Chief Executive Officer Mohamed Ebrahim Mohamed said finance transactions witnessed a 20% growth in comparison with December 2008 which was evidence of the Bank’s strength and available liquidity for financing various economic sectors in the Kingdom of Bahrain.
On the other hand, BIsB was able to increase current accounts and deposit accounts by 14% and 17% respectively against the end of 2008 figures. This is further evidence of the investors’ confidence in the Bank and strength of the financial position enjoyed by BIsB.
BIsB Chief Executive further said: “We are committed to contribute to the growth of the local economy, which is obvious in our significant contributions in the last few months through the following: Investment in Al Door Electricity and Water Station by a sum of US$25 million, contributing to the purchase of new aircraft for the national carrier Gulf Air by a sum of US$20 million and providing finance to Bahrain Mumtalakat Holding Company by a sum of US$70 million, since this Company is the investment arm of the Kingdom of Bahrain. This stems from the belief in further supporting the foundations of the national economy, in addition to our ongoing involvement in financing the infrastructure and providing corporate and retail finance transactions over the last three decades.”
He continued: “As part of the achievements made and awards received by the Bank over the last two years on the local and regional levels, the Bank won the Best Islamic Bank in Bahrain Award 2009 during September owing to the quality services provided by the Bank to its customers and its innovation and development of the best banking products. The Award was received during the Bank’s participation in the IMF meetings held in Istanbul during October. The award is an indication of the outstanding and leading role played by the Bank in providing outstanding Islamic banking facilities and services.”
In his comments, Mr. Mohamed Ebrahim revealed the Bank’s plan to open its new branch in the Bahrain City Centre Mall in early January, 2010 to provide more convenient services to the Bank’s customers.
Finally, the Chief Executive expressed his thanks and appreciation to the Chairman and members of the Board, executive management and all the Bank’s employees for their sincere efforts to achieve the best results and services for the benefit of the shareholders and depositors. He also expressed his thanks to the regulatory authorities in the Kingdom for their continuous support to Islamic banking institutions.