Bahrain Islamic Bank Quickly Back in the Black

13-April-2010

Bahrain Islamic Bank has quickly returned back into profitability, as revealed by first quarter results, declared yesterday after being approved by the Board.

In the press release issued by the Bank, Mr. Khalid Abdulla Al-Bassam, Chairman of the Board declared that the Bank has made net profit of BD 1.2 million as compared to BD 6 million in the same period of previous year, though for the great difference in the subsequent adverse conditions and developments which have been experienced by the markets during last year. The quick return to profitability is a manifestation of the Bank's competetative ability in overcoming difficult situations due to its solid operations and strong financial position. 

The Chairman of the Board has expressed his pleasure about these results which he considered as a pleasant omen for the new year, which was a culmination of the wise and prudent policies set by the Board of Directors through its practice of the highest levels of transparency and regulation, good services and wise investments and the selection of the best partners as has been formulated in the new strategy approved lately by the Board. 

Mr. Khalid Abdulla Al Bassam Chairman of the Board of Directors was also pleased of the issuance of Moody Investors Services' official report in February 2010 where BisB received on investment grade with Baa1 rating for long-term and Prime-2 short-term local and foreign currency issuer ratings with a stable outlook, which confirms the international recognition of BisB's competitive standing and abilities. 

On his part Mohammed Ebrahim Mohammed – Chief Executive Officer of BisB, explained that these positive financial results achieved from the implementation of conservative policies during last period which witnessed a lot of global financial fluctuations that affected most international financial institutions. Hence, BisB has realized net profit to the tune of BD 1.2 million in the first quarter. This profit was contributed from Corporate & Institutional Banking, Retail Banking and Treasury & Investment divisions, which are known as the operational divisions and the prime pillars for the most successful banking business and to refrain from real estate valuations. Also, operational profit from Islamic financing reached 77% of total operational profit which is a manifestation of the right path where BisB is headed. 

Mohammed Ebrahim Mohammed, the CEO, explained that total balance sheet has experienced a growth of 5% for the first three months, and Islamic Financing, has grown on its part by 2%. On the opposite side current accounts reached BD 90 million i.e. an increase of 13% and another increase of 5% in customer deposits for the first three months. As far as for the services extended by BisB, the CEO added that we are proceeding in line with our plan to introduce the best of services through the implementation of more electronic mediums and through other services such as the official inauguration of our Bahrain Financial Harbor branch in February of the current year, and the anticipated inauguration of our new branch in City Center Mall during next month by Allah Almighty's will. He also confirmed that the work is in progress to start construction of our financial malls by last quarter of the current year. 

The CEO, Mr. Mohammed Ebrahim Mohammed, then rendered his thanks and appreciation to the Chairman and Members of the Board of Directors for their persistent guidance and support, and to the supervisory entities for their cooperation and follow-up , and to the respected Sharia Board members and to the shareholders and the respected customers for choosing BisB for conducting their banking business, and to all BisB staff for their efforts and dedication in performing their duties. The CEO then prayed for Allah Almighty that the year 2010 and the years to come would turn out to be of success and blessing for all.