In a Press Release issued by the Bank yesterday Monday 11th, Mr. Abdul Razak Abdulla Hassan Al Qassim – Chairman of the Board of Directors announced, after the Board approval of the Financial Statements for the period ended on 30th June 2014, that BisB has realized BD 4 million as net profit for the first half of the current year, after deducting BD 3.7 million net provisions, compared to BD 2.4 million as net profit for the same period of last year.
Mr. Abdul Razak Al Qassim – Chairman then explained that BD 7.8 million operating profits has been realized compared to BD 7.8 million for the same period last year. The Board has decided to set BD 3.7 million as net provisions compared to BD 5.7 million for the same period last year, this has resulted in BD 4 million as net profit compared to BD 2.4 million as net profit for the same period of last year, an increase of 67%.
Mr. Abdul Razak Al Qassim stated that the Board of Directors has approved a 5-year Strategy up to 2018 in collaboration with Boston Consulting Group (BCG), and that implementation plans has been approved and started. The Chairman then added that one of the important objectives of the new strategy is the concentration on the growth of core activities and disposal of nonperforming investment assets and to exploit opportunities for entering new markets with the aim of expanding the Banks activities.
Concerning the financial results, the CEO explained that Islamic Finances witnessed an increase of 13% for the first six month compared to December 2013, and Islamic Sukuk increased by 97% compared to December 2013, current accounts registered an increase of 38% compared to December 2013, in addition to the continued decline in the cost of funds compared to same period of last year.
Net operating profits for Q2 reached BD 2.6 million compared to BD 3 million for the same period of last year, net provisions for impairment was BD 1 million for Q2 compared to BD 1.7 million for the same period of last year, and net profit of BD 1.5 million for Q2 compared to net profit of BD 1.3 million for the same period of last year. These are considered good results taking into consideration the current difficult economic situations, especially that all revenues were generated from core activities of the Bank.
The CEO explained that the final approval of the Board to the Bank’s Strategy, which extends up to the end of May 2018, has defined the major outlines of the upcoming period which is summed up in concentrating on core banking activities and disposal of non-performing investments plus exploiting any new viable opportunities.
The CEO then confirmed that all what has been achieved reflects on the new Strategy of the Bank where full reliance on revenues and fees from finances and major activities has generated 82% of the operating revenues of the Bank and that all revenues are free from revaluations or unearned profits, with the exception of the successful exit from some investment portfolios and the selling of lands, and the semi-final exit from listed equities with a net gain of BD 3 million.
In conclusion, the Chairman expressed his thanks to the Members of the Board of Directors for their continued support, and to the respected Sharia Supervisory Board members for their fatwas and clarification of Sharia issues, and to the supervisory and regulatory authorities for their support and cooperation and oversight, and to the shareholders and respected customers for choosing BisB for conducting their banking and financial services activities, and to all staff of BisB for their efforts and dedication in performing their duties.
Tuesday, August 12- 2014 @ 10:03 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.