Khaleeji commercial bank increases first quarter net income by 213% to bd12.6 million
Khaleeji Commercial Bank (“KHCB”), one of Bahrain’s leading Islamic banks, today announced strong results for the first quarter of 2008. Net income for the quarter increased by 213% to BD12.6 million compared to BD 4 million for the corresponding period in 2007. Total assets grew by 187% to BD308.5 million and customer deposits increased by 130% as of end of March 2008. On an annualised basis, Return on average assets was 17.4%, and return on average equity was 39.9%. KHCB continued to successfully focus on the growth of its financing programme and its Islamic financing assets reached a cumulative book size of BD106.9 million.
Dr Fuad Al-Omar, Chairman of Khaleeji Commercial Bank, said, “2008 has started exceptionally well for Khaleeji Commercial Bank. The excellent financial results delivered by the Bank were achieved by executing a clearly defined strategy to position the Bank as a leading regional Islamic financial institution delivering innovative Islamic financial products and services to customers in the GCC and MENA regions.”
“We are already beginning to see the benefits of some of our strategic decisions implemented last year. The increase in our paid up capital from BD30 million to BD100 million is enabling us to pursue our growth strategy more aggressively both in the corporate banking and investment banking business segments. We have also benefited from our strategic partners, who include some of the most reputable financial institutions in the region. ”
Commenting on the results, Mr Ebrahim H Ebrahim, Chief Executive Officer and Board Member of Khaleeji Commercial Bank, said, “We have grown our business significantly during the quarter, as reflected both in the balance sheet size and our profits. The Commercial Banking division has performed well, increasing deposits and financing assets, further benefiting from local and regional economic activity. We are gradually increasing the market share of our commercial banking business in Bahrain and will continue to invest in our business infrastructure to ensure an exceptional level of customer service as our customer base expands.”
“The Investment Banking division continues to perform very well. With the introduction of products such as Restricted Investment Accounts, KHCB is helping to transform the market by providing the opportunity for a new class of investor to benefit from the regional growth story. During the quarter, we launched Jawhara Greens, a land and infrastructure focussed investment in the Lusail area of Doha, with a total equity size of USD 250 Million. We also completed the placement of Danat India Investment Company (“Danat”), with an equity value of $163.5 million. Danat will invest in a real estate development project in Noida near New Delhi, and is targeted at providing affordable housing to the burgeoning Indian middle class These products were well received by the market.”
Mr. Ebrahim added that the Bank will soon move to its new headquarters in the Bahrain Financial Harbour and will also open its second branch there. In addition to the new branch, the Bank will also launch electronic channels including internet banking and mobile banking to provide a range of access points for its customers.
“We are confident that during quarters 2 through 4 of 2008, we will be able to build on the strong momentum created in the 1st quarter. The Bank has established a healthy deal flow in both the investment banking and commercial banking businesses which will help in achieving the financial objectives set by our Shareholders and the Board of Directors.“ Mr. Ebrahim concluded.
