Bahrain Islamic Bank returns to profitability and realizes BD6.1m as net profit
Bahrain Islamic Bank announced that it has realized BD6.1m as net profit for the financial year ended on 31St December 2013 compared to a net loss of BD36.1m for the year ended on 31st December 2012 an increase of 117%. The Bank realized in the last quarter of 2013 net profit equals BD2.3m as compared to a net loss of BD15.3m for the same period of last year an increase of 115%.
In a press release issued by the Bank on Monday, Mr. Abdul Razak Abdulla Hassan Al Qassim, Chairman, announced that the Board of Directors has approved the Financial Statements for the year ended on 31/12/2013. The Board of Directors expressed its satisfaction with the results and the quick recovery to profitability, which gives a favorable outlook into the future.
Mr. Al Qassim confirmed that the success of the acquisition transaction that took place in May 2013 by buying the stake of The Investment Dar (TID) – Kuwait on an equal share between NBB & SIO was a correct decision and its benefits will be felt in the whole spectrum of the Bahraini financial and banking sectors. The transaction was executed after proper and thorough studies, and has started paying off through the positive results registered by the Bank. The Chairman confirmed that the activities of the Bank will be supported by the major shareholders till the bank maintains its proper status among the Islamic Banks.
He explained that the Board of directors has hired Boston Consulting Group (BCG) to formulate and implement a new 5-year strategy plan for the Bank. BCG is a reputed consulting firm and it is one of the best five in its field internationally. It has a good track record in the field of consulting and strategy formulation. The Chairman explained that the Bank has a lot of potential and solid pillars of assets and human resources. By the help of its major shareholders: NBB, SIO, IDB and Kuwaiti Awqaf, the Bank is poised to realize more returns for its shareholders and depositors.
On his part, Mr. Mohammed Ebrahim Mohammed, CEO of the Bank, expressed his satisfaction on the positive results achieved by the Bank, thanks to Almighty Allah, which reflect the strong financial position of the Bank where the Bank is relying on income and fees from core finances and activities which constitute more than 90% of total operating income of the Bank, and moreover, this income is free of any revaluations or unrealized gains, besides the continued efforts on further developing the customer base of the Bank as a result of offering excellent services and products for all its clients.
Mr. Mohammed then explained that total footing of financial statements has witnessed a growth of 9% as compared to last year where Islamic Finances has increased by 6%. The Bank was able to maintain an excellent liquidity ratio at 26%, current accounts registered a growth of 22% and customer deposit growth was 8% as compared to last year, in addition to the drop in cost of funding by 21% compared to 2012.
In conclusion, the Chairman & CEO expressed their 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, asking Allah-Almighty that 2014 and the coming years would be successful and prosperous years to all.
Ali Hasan Duaij Khalifa
Manager -Corporate Communications
Bahrain Islamic Bank
Tel: +973 17 51 5130