Bahrain Islamic Bank reports BD3.8m in profits in 9 months

The Bahrain Islamic Bank (BisB) announced that the Bank made BD3.8 million in net profits during the first nine months ending on 30th September, 2013 compared with a net loss of BD20.8 million during the same period of 2012. The Bank's 9-month financial results were announced by the Bank's Chairman Abdul Razzaq Abdullah Al-Qassim following the Board's approval of the results. The nine month financial results were released following the deduction of provisions totaling BD9.1 million for this period against provisions of BD24.9 million set aside during the same period of last year. The Bank was able to achieve a net profit in the third quarter of 2013 amounting to BD1.4 million against a net loss of BD4.9million during the same period of last year after setting aside provisions for the three-month period of 2013 amounting to BD3.4 million against a loss of BD5.4 million during the same period of 2012. Mr. Abdul Razaq Abdulla Al Qassim said the Bank made operational profits of BD12.9 million during the first nine months of the year against BD3.9 million during the same period of last year. Meanwhile, operating profits for the three-month period were BD4.8 million against BD436 thousand for the same period of last year. The Bank's financial results reflect the prudent policy pursued by its Board of Directors, especially as all the earnings gained represent the principal activities involving the Bank's assets. BisB Chairman expressed his satisfaction with the current results of the Bank against the backdrop of the acquisition deal by the National Bank of Bahrain and Social Insurance Organisation, which acquired equal shares in the equity of Dar Investment-Kuwait totaling 51.6% this development was followed by the formation of a new Board of Directors in July and reformation of the Board's sub-committees. The changes will significantly contribute to supporting the Bank's operations and various activities. Al-Qassim also announced that the Board was in the process of drawing up a new strategy for the Bank to meet the requirements of the new phase and the required backing to boost the Bank's activities, raise its local market share, diversify risks and increase earnings to offer the highest possible value to the shareholders in the next few years. On the other hand, BisB Chief Executive Officer Mr. Mohamed Ebrahim Mohamed said he was delighted about the Bank's positive results in the first nine months of this year. However, he emphasized that he looked forward to even better results given the Bank's good reputation over three decades of operations. Following the acquisition of the Dar Investment Kuwait's equity by NBB and SIO in the second half of this year, it has gained even greater potentials for strengthening its asset base and achieving more revenues for the shareholders. At present, more than 76% of the Bank's equity is owned by Bahraini and Gulf government institutions. The Bank's Chief Executive Officer added the results achieved by the Bank clearly demonstrate that the Bank was on the right track in terms of almost total dependence upon earnings and fees for finance activities constituting more than 95% of the gross operational earnings. The revenues of the Bank do not include any unrealized valuations and profits and the cash liquidity for the 9-months of 2013 stood at 24%. As for future developments, the Chief Executive Officer said the Bank was all set for the soft opening of its second financial mall on Budaiya Road in December. This comes on the heels of the soft opening of the first financial mall in the Arad area to offer customers a higher standard of banking services and more convenience during the normal business hours in addition to opening for more business days. The Bank's financial malls provide customers with better parking facilities. BisB Chief Executive Officer expressed his thanks and appreciation to the Chairman and members of the Board of Directors for their continuous support to the Bank. He also thanked members of the Sharia's Supervisory Board for vetting and oversight of the Bank's activities to ensure full compliance with the principles of Islamic Sharia'a. The Bank's CEO thanked all the shareholders, customers and the Bank's staff members for their hard work and sincere efforts in serving the Bank.