Bank Alkhair announces net profits of $4.7m
Bahrain-based Bank Alkhair, an Islamic wholesale bank, announced its financial results for the year ended 31 December 2013, as approved by the Board of Directors.
The Bank returned to profitability and recorded a net profit of $4.7m for the year ended 31 December 2013 compared to a loss of $39.8m in 2012. This was driven mainly by income from gain on acquisition of assets held for sale, income from investment securities, fees, commissions and improved operating efficiency. Net profit for the fourth quarter of 2013 was $4.1m as compared to a loss of $13.9m during the same period in 2012.
The financial highlights are: total income increased to $34.7m in 2013 and total operating expenses reduced by 30% from $44.5m to $31.2m when compared to the same period last year. This was largely due to streamlining of the Bank’s activities year-on-year. Total assets increased by 42%, to $628.6m with a 27% increase in total equity to $248.6m in 2013. The Bank’s return to profitability was the result of strong shareholder support, investor loyalty and a dedicated management team.
Commenting on the Bank’s financial results, Mr. Yousef Al-Shelash, Chairman of Bank Alkhair, said: “The turnaround in the Bank’s financial performance as reflected in our net profit of $4.7m in 2013 is a resurgence of the Bank’s commercial activities in our core markets and a testament to our refocused business model which has steered the Bank’s trajectory to return to profitability and strengthen its position.
“We continued to invest and strengthen our subsidiaries in Saudi Arabia, Turkey and Malaysia and took concrete measures to streamline our operational activities. I remain confident that going forward, the Bank is positioned to deliver stronger, highly visible growth in 2014 and beyond with a substantially improved balance sheet. I would also like to extend my sincere thanks to our professional team for their commitment and efforts that has led to these positive results.”
Jonathan Holley, Acting CEO of Bank Alkhair, said: “Despite the challenging financial environment in 2013, our efforts were focused on extracting value from each of our target markets which has resulted in the Bank returning to profitability. Besides identifying unique opportunities in the market to secure durable and consistent sources of income, we are also committed to accelerating our business growth through investments in our different markets with continued operational stability in the short term and sustainable profitability in the long term.”
“Looking forward we are confident that the Bank is well-positioned to capitalise on growth opportunities in the MENA region to the benefit of our shareholders, investors and employees. We are also grateful to the Central Bank of Bahrain for their continued support and guidance.”
Bank Alkhair in Bahrain continues to consolidate its multi business lines to focus on management of alternative assets. This involves sources and structuring alternative investment opportunities in the MENA region and placing these opportunities with the Bank’s client base in the GCC. This strategy has resulted in generating recurring income from management fees and third party placements.
Subsidiaries of Bank Alkhair include: Alkhair Capital Turkey’s operations which continue to complement Bahrain’s investment banking business. In Saudi Arabia, Alkhair Capital Saudi Arabia continues to revolve around the three core business lines: Asset Management; Investment Banking and Brokerage. In Malaysia, Alkhair International Islamic Bank the Bank’s Capital Markets division continues to focus its strategy on maintaining an optimal asset mix and generating income from fee-based transactions.
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