Bahrain Islamic Bank’s board of directors has approved the Financial Statements for the period ended on 31 March 2012 where the Bank registered BD543 thousand as net profit for the first quarter of this year compared to BD1.5m for the same period last year.
Khalid Abdulla Al-Bassam, chairman of Bahrain Islamic Bank, explained that BD2m in operating profit were realized compared to BD2.5m for the same period last year and the Board has taken provisions of BD1.5m as a precaution against any unforeseeable deterioration in asset values compared to BD1m for the same period last year. The income has all been generated from major core activities of the Bank. He expressed his satisfaction of the increase in customer deposits by BD30m in the first three months which equals to 5% of total deposits, this reflect customer confidence in the Bank as the first Islamic Bank in the Kingdom of Bahrain.
Mohammed Ebrahim Mohammed CEO of the Bank explained that all financial indicators for the first quarter are in favor of the Bank: whether it be availability of liquidity, increase in customer deposits and Islamic finance for corporate and individuals or the decrease in the cost of deposits.
The CEO then explained that the liquidity indicator reached 24% for the first quarter, Islamic finances increased by 4%, and cost of deposits has been lowered to a great extent, plus the decrease in expenses as compared to income which has decreased to 43% compared to 51% last year. CAR is around 15.3% at a level more than what is required by the regulatory authorities. This confirms the prudent and conservative policy adopted by the Bank.
The CEO then confirmed that what has been accomplished represents the right track for the Bank. The Bank now rely totally on income and fees from finance and core activities which represent more than 90% of total operating income and that this income does not contain any revaluations or unearned profit. This result is a consequence of the advanced and developed services presented by the Bank and enjoyed by all its clients.
Mohammed Ebrahim Mohammed – The CEO then explained that work is underway in the five malls, to be developed by the Bank, and is running according to schedule. It is expected that construction of some of the malls will be finalized by the end of this year, and these will be inaugurated in the first quarter of next year.
In conclusion, the CEO expressed his thanks to the Chairman and Members of the Board of Directors for their continued support, and to the respected Sharia Supervisory Board members for their explanations and clarifications of Sharia issues, and to the supervisory and regulatory authorities for their support, cooperation and oversight, and to the shareholders and respected customers for choosing BisB for conducting their banking and financial services activities, and to the staff of BisB for their dedication and hard work in performing their duties.