Bahrain Islamic Bank (BIsB) issued a press release on Tuesday announcing its financial results for the third quarter of this year during which its net profits totaled US$85 million, an increase of 84 percent over its US$46 million net profits during the same period of last year.
In a statement, Khalid Abdulla Al Bassam, Bahrain Islamic Board Chairman said: “This excellent performance is attributed to the balance in diversifying investment risk, proper application of the Bank’s financial policies and extreme care in not involving the Bank’s financial resources and investments in high risk transactions that could undermine the Bank’s financial position.”
In spite of the prevailing global financial crisis due to the US mortgage credit crisis in the US, the Bank was able, through the application of the Sharia’a compliance standards laid down by the Sharia’a Supervisory Board, to properly select its banking transactions to achieve positive results. In addition, the Bank enjoys a high level of liquidity that would enable it to go forward with confident steps.
In his remarks, Al Bassam said: “The operating income rose to US$153 million at the rate of 63 percent compared with US$94 million during the same period of last year. Such increase is due to the growth in retail and corporate finance and achieving attractive returns from the Bank’s diversified investments according to the Bank’s plan for this year.”
BIsB Chairman further said: “Total income from investment accounts amounted to US$32 million which was further evidence of the management’s policy to offer the highest returns to investors which enabled the Bank to gain a bigger local market share in spite of the strong and increased competition. This is also further proof of the high quality of the Bank’s assets.”
Meanwhile, Mohamed Ebrahim Mohamed, BIsB Chief Executive said in comment on these excellent financial results: “The Bank enjoys a strong financial position as its total assets increased by 47 percent during 3rd Quarter of 2008 amounting to US$2.5 billion. Such increase focused on finance transaction and continuous growth and diversification of investments in general. These figures also show a significant growth in investment portfolios of all types to reduce risks according to the Bank’s general policy.”
Mohamed Ebrahim added: “The Bank also launched new products to raise its share of Islamic finance and deposits in the local market at the most reasonable rates. New products are set to be launched before the end of this year. BIsB plans to launch new investment products to all its customers at higher returns that compete with existing products in the local market. The Bank continues its plan to improve the quality of services provided to its customers through all branches, including electronic services through the most advanced hardware and technologies.” The Chief Executive further said the Bank’s executive management is closely monitoring developments on the world financial markets and the difficulties experienced by certain international banks due to the pursuit of certain policies. The Bank’s management believes that compliance with the rules and principles of Islamic Sharia’a provide the solution for all crises and difficulties. We in BIsB continue to communicate and co-ordinate with all the concerned authorities and shareholders for preserving the interests of depositors and shareholders.”
Concluding, he said the Bank has completed the process of filling all senior and executive positions in its structure enabling it to become more competitive and to occupy a leading market position. The Bank is continuing its policy of attracting and recruiting the best professionals and skills in various areas to enable it to achieve its long-term goals.
