Bahrain Islamic Bank Achieves a Net Profit of Bd2.2 Million in First Quarter of 2018

Bahrain Islamic Bank (BisB) announced that it has achieved a net profit of BD 2.2 million for the period ending on 31^st March 2018 compared to a net profit of BD 0.6 million for the same period last year, an increase of 267%. The Bank also achieved a profit before impairment allowances of BD 4.2 million for the period ending on 31^st March 2018 compared to BD 3.4 million for the same period last year.

The Board has approved the Bank's financial results in its meeting held yesterday, where the Chairman of the Board of Directors, Dr. Esam Abdulla Fakhro, announced the Board’s approval for the Bank’s financial statements for the period ended on 31st March 2018, expressing the Board’s satisfaction with the excellent results, which reflected the Bank’s strong financial performance and the effectiveness of its strategy and work plan during this period.

Dr. Esam Abdulla Fakhro, Chairman of the Board of Directors, confirmed the Bank recorded a total income of BD 10.2 million for the period ended 31st March 2018 compared to BD 9.8 million for the same period last year. Earnings per share have also increased to 2.05 fils for the period ending on 31^st March 2018 compared to 0.56 fils for the same period last year, an increase of 266%. The Bank recorded a total owners’ equity BD 109.9 million as of 31st March 2018 compared to BD 122.3 million as of 31^st December 2017, a decrease of 10.1% due to the impact of adopting FAS 30.

The Chairman went on to confirm that the Bank has maintained a strong portfolio during the first quarter of 2018 with a liquid assets to total assets ratio of 10.6%, in addition, the Bank continues to limit its exposure of its real estate portfolio during the first quarter of 2018, cementing the Bank's keenness to continue to follow a prudent and conservative work policy across various transactions and financing. The Board revealed their continued satisfaction with implementation of the Bank's strategy “Ishraq – Back to Basics” whilst streamlining their operations, resulting in a positive results achieved enabling the Bank to enjoy a comfortable financial position.

Mr. Hassan Jarrar, BisB Chief Executive Officer, revealed his appreciation: “The positive results of this period of the year, which have been achieved, under the grace of God, and thanks to the continuous efforts of all employees; reflect the strong financial position and continuous improvement in the Bank's various business sectors. The Bank also heavily relies on revenues and fees from finances and other major activities, which represent 100% of total revenue, as well as ongoing efforts to expand the customer base as a result of the Bank's unique services presented to all its customers.”

Mr. Jarrar also explained that the total assets decreased to BD 1,212.7 million compared to BD 1,228.6 million as of 31 December 2017 by 1.3%, while the financing and investment in Sukuk portfolio has increased to BD 977.6 million compared to BD 968.6 million as of 31 December 2017 by 0.9%. In line with the Bank’s strategy to focus on the core banking activities, the other investments have decreased to BD 81.1 million compared to BD 84.1 million as of 31 December 2017 by 3.6%. Customer accounts have decreased to BD 887.7 million compared to BD 925.4 million as of 31 December 2017 by 4.1%. Mr. Jarrar explained that current accounts increased to BD 144.4 million as of 31 March 2018 compared to BD 131.7 million as of 31 December 2017, an increase of 10%. In addition, placements and borrowings from financial institutions increased to BD 201.5 million as of 31 March 2018 compared to BD 169.4 million as of 31^st December 2017, an increase of 19%.

Total expenses were declared at BD 6 million, a decrease of 6.3% over the same period last year which was equal to BD 6.4 million. The Board of Directors has specified net impairment allowance for the same period in the amount of BD 2.1 million compared to BD 2.8 million for the same period last year.

Mr. Hassan Jarrar assured that the Retail Banking sector witnessed a launch of revamped products and services, including the launch of Tejoori Al Islami savings account promotional campaign, which offers big and attractive financial prizes to customers. In addition, the Bank introduced the Visa Credit Card campaign, which offered two packages to attend the 2018 FIFA World Cup Russia semi-finals, and a Grand Sale campaign in February included discounts on all its financial products and cash backs. 

“Our Corporate Banking witnessed the official launch of BisB Corporate Digital comprising an enhanced online platform and powerful mobile application at the ePay Summit, which the Bank has recently sponsored” said Mr. Jarrar.

Adding, “As for Human Resources, the Bank has launched a number of tailored training programs, including the "Women in Leadership" Program, which aims to further develop the leadership skills of female staff and the “Leadership Development Program” which trains the Bank's managerial and the supervisory level of employees with the overall objective of enhancing their soft skills, developing increased productivity and time management skills.  

In conclusion, the Chairman and the 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 customers for choosing BisB as their preferred financial institution, and to all BisB for their efforts and dedication in performing their duties.

For the press release and the detailed financial statements, please visit BisB and Bahrain Bourse website.