BisB Continues Strengthening its Provisions

19-October-2010

Continuing on its conservative and conscientious policy BisB has decided to strengthen its provisions base for the third consecutive quarter and hence to enhance its financial position. 

The Bank distributed a press release on Wednesday in which Mr. Khalid Abdullah Al-Bassam – Chairman of the Board of Directors announced that BisB Board of Directors has approved the financial results of the Bank where the Bank has registered a loss of BD 9.9 million for the previous nine months after increasing its provisions for finance and investment portfolios, a measure which has resulted in incurring a loss of BD 4.3 million for the third quarter of the current year, in preparation for any future fluctuations and in harmony with the Bank's conservative policy in this regard. 

Mr. Khalid Abdullah Al-Bassam – Chairman of the Board of Directors stated that the Board has agreed in its meeting held yesterday Tuesday 19th October 2010 to issue an invitation to an Ordinary General Assembly to be held on 8th February 2011 to discuss capital increase after coordination with and receiving of CBB approval and other official entities and confirming that the capital increase is necessitated by financing and other activities needs. He also confirmed that the Bank has a solid liquidity ratio of 21%. 

Mr. Khalid Abdullah Al-Bassam expressed his satisfaction on continuing to implement the Bank's conservative policy and the careful monitoring of all market movements and to benefit from available opportunities as has been set out in the Bank's strategic plan, and in the Bank's adherence with corporate governance standards and in complying with CBB directions and decisions as far as disclosure and transparency standards are concerned. 

Mr. Khalid Abdullah Al-Bassam has pointed to the role played by the Bank in its contribution to the national economy through its various participations in financing viable projects in the Kingdom of Bahrain out of which are the projects belonging to the affiliates of Mumtalakat Holding Company. He confirmed the Bank's inclination to participate more in financings and in contributing in future Government of Bahrain and private future investments whenever the right and viable economic opportunity arises. 

Mr. Khalid Abdullah Al-Bassam also, expressed his great satisfaction after issuance of Moody Investors Services' official report 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 abilities. 

On his part, Mr. Mohammed Ebrahim Mohammed – CEO of the Bank expressed his satisfaction to the support received from the Board of Directors to the steps taken by the executive management in its efforts to build and enhance the financial position of the Bank through increasing of provisions so as to satisfy the present situation. 

The CEO of the Bank then added by stating: "what is satisfying is that the Bank is now depending more on income from financings and other core business which constitute 78% of total operational income and that the Bank income is free of any revaluations or unearned income which confirms the conservative and rightful path followed by the Bank". 

Mr. Mohammed Ebrahim Mohammed then added that the Bank is continuing on attaining its objectives and future plans by concentrating on developing its core activities especially in the retail services sector which has grown by more than 700% in the last three years. 

As far as the services presented by the Bank are concerned the CEO has clarified that according to operational approved plan we are going to develop more products and other services either through the Bank's different outlets as branches, ATMs or through our internet portal. The Bank also has started in the last few months renovation of some of its branches for the sole purpose of servicing and satisfying its customers. 

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 respected Sharia Board members for their fatwas and clarification of Sharia issues, and to the supervisory entities for their cooperation and follow-up, 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.