Khaleeji Commercial Bank (KHCB), one of Bahrain’s fast growing Islamic retail banks conducted its Annual General Meeting (AGM) for the financial year 2013 on 18th March 2014 at the Regency intercontinental Hotel. The meeting was attended by KHCB’s shareholders, members of the Board of Directors, Executive Management team, Shari’a Board, auditors and regulators.
During the Meeting, minutes of the previous AGM and audited financial statements for the year ended 31 December 2013 were reviewed and approved. Shareholders were updated on the latest developments in the intended merger with Bank Al Khair and new members of the Board of Directors were elected for the next three years.
Speaking on the occasion, Chairman of the Board of Directors at Khaleeji Commercial Bank Dr. Fuad Al Omar said, “While regional and global economic environment saw signs of improvement, 2013 remained challenging for the local economic and business environment. Despite the given market scenario, the Bank successfully achieved considerable growth during the year in accomplishing key milestones including opening of new branches, launching of new retail banking products and expanding consumer finance business.”
“In comparison to 2012, the Bank grew its total assets by 14.6% from BD473.2 million to BD 542.2 million and it’s consumer finance portfolio witnessed a 66.7% growth over 2012 and the total income from Commercial Banking comprises 94.6% of the total income as a result of a significant 74.5% increase in Consumer Finance activities,” added Mr. Fuad.
“As the Bank continued to execute its strategic plan, the Board and the Management conducted a comprehensive review to ensure that assets, especially those acquired prior to the new business model reflect realizable and fair value. Based on this review the Board decided to take a very conservative view and provide for all assets which were impaired or likely to be impaired in the short to medium term. Consequently, in 2013 the Bank provided an aggregate amount of BD 17.7million in impairment provisions and marked to market losses. This resulted in a Net Loss of BD 19.2million compared to a Profit of BD 751 thousand in 2012,” continued Mr. Fuad.
Commenting on the Financials of the Bank, Dr. Fuad said, “The Bank continues to maintain strong liquidity and capital positions with a Capital Adequacy Ratio of 22.95% (regulatory requirement is 12%) and Liquid Asset Ratio of 27.3% which indicates a strong financial position with sufficient capacity for growth in future. The Bank continues to improve its profitability with increase in revenue from core operations and control of costs”.
With regards to future plans of the Bank, Dr. Fuad said that KHCB will continue to promote and market a full suite of Consumer Finance products including Auto Finance, Personal Finance, Mortgage Finance and Visa branded credit cards and will launch new products based on customer needs.
Finally, KHCB’s Board of Directors and Senior Management extended appreciation and thanks to the staff of the Bank whose dedicated service and commitment has played a vital role in the achievements of the Bank over the years and to all valued customers for their continuous support and confidence.
Headquartered in the kingdom of Bahrain, Khaleeji Commercial Bank BSC is a fast growing Islamic retail bank that endeavors to achieve its vision to be a leading domestic and regional Islamic Bank, providing a comprehensive range of high quality Shari’ah compliant banking and investment products, services and investment opportunities to their customers and corporate clients.