Bahrain Islamic Bank Posts BD3.5 Million Net Profit for First Half of 2018

Bahrain Islamic Bank’s Chairman of the Board of Directors, Dr. Esam Abdulla Fakhro, confirmed that the Bank has achieved a net profit of BD 3.5 million for the six months ended June 30, 2018 compared to a net profit of BD 3.3 million for the same period last year, an increase of 6%. The Bank achieved a total income of BD 20.5 million for the period ended 30^th June 2018 compared to BD 20.6 million for the same period last year, a decrease of 0.5%. Total expenses were declared at BD 12.3 million for the first half of 2018, a decrease of 3.1% over the same period last year which was equal to BD 12.7 million. Earnings per share have also increased to 3.34 fils for the period ending on 30^th June 2018 compared to 3.12 fils for the same period last year, an increase of 7%. Net impairment provisions for the six months period amounted to BD 4.6 million compared to BD 4.7 million for the same period last year.     

For the three months of the second quarter, ending 30^th June 2018, the Bank recorded a net profit of BD 1.4million compared with BD 2.7 million for the same period last year, a decrease of 48% while total income achieved BD 10.3million compared with BD 10.9 million, a decrease of 5.5%  

Total expenses during the three months ended on 30^th June 2018 amounted to BD 6.3million compared with BD 6.4million for the same period last year, while net provisions for the three months ended on 30^th June 2018 amounted to BD 2.6 million compared with BD 1.8million for the same period of last year.

The Board has approved the Bank's financial results in its meeting held yesterday, Monday 13^th August 2018. Dr. Fakhro, announced the Board’s approval for the Bank’s financial statements for the period ended on 30^th June 2018, expressing the Board’s satisfaction with the positive results that reflect the Bank’s continued improvement and the effectiveness of its strategy and work plan during this period.

The Chairman said, "Taking into account the strong competition prevalent in the banking industry, along with the current economic and political conditions in the market, the Bank continues to follow its newly-formed policy adopted by the Board of Directors, which focuses on accommodating large, medium and small enterprises, evaluating business strategy risks and opportunities outlined at the start of the year. The Board of Directors is satisfied with the Bank’s progress in implementing the Bank's strategies, and the positive results achieved, which continue to move in the right direction.”

Mr. Hassan Amin Jarrar, Chief Executive Officer of the Bank, said, "The results of the second quarter, which have been achieved by the grace of God, and the continuous efforts of our dedicated employees, reflect the Bank’s continuous improvement across various business sectors. We achieved an increase of 6 % in Net Profit compared to the same period of last year, where the Bank relies on revenues and fees from financing and other major activities, which represent majority of total income. Moreover, the Bank has maintained a significant liquid assets to total assets ratio of 12.4% demonstrates the Bank’s ongoing efforts to expand its customer base, as well as the strength of our diversified portfolio of financial solutions we offer our customers."

Mr. Jarrar added, "Islamic financing witnessed an increase of 1.4%, Tejoori Al Islami accounts and other savings accounts increased by 1.8% compared with 31^st December 2017, as well as an increase in current accounts by 14%, and placements and borrowings from financial institutions by 16.8% compared with 31^st December 2017. The Bank witnessed many achievements during this quarter, including the success of ‘The 2^nd Forum of Islamic Shari’a Advisors and Legal Experts’ which discussed the latest and most pressing issues concerning Islamic banking. The first batch of employees completed a series of training programs in various disciplines related to banking, management skills and leadership skills. BisB launched its Innovation Lab, and re-launched Al Thuraya Premium Banking Services with new and exclusive features."

In conclusion, the Chairman and Chief Executive Officer of the Bank expressed their thanks and appreciation to the Board of Directors for their continuous support, and to the honorable members of the Sharia Supervisory Board for clarifying the Sharia banking matters. They also offered their appreciation to the Supervisory Authorities and local government bodies for their co-operation and guidance. Finally, the management acknowledged the Bank’s shareholders, and its loyal customers for choosing the Bank to conduct their banking transactions. They also thanked the Bank’s employees for their continued efforts, hard work and dedication.