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Bahrain : MANAMA: BAHRAIN ISLAMIC BANK announced 67% jump in the first half net profit to BD4m

August 14, 2014

The Bahrain Islamic Bank (BisB) has revealed its report card for the first six months of this year in recent times.

The lender has recorded a massive 67% growth in its net profit for the first half of 2014 to BD4 million ($10.6m) as against BD2.4m in H1, 2013.

The BisB has realized this after deduction of net provisions of BD3.7m, while the net provisions for the first half of the previous year stood at BD5.7m.

However, the bank s operating profits for the period under review stood flat at BD7.8m.

As against the end of 2013, Islamic finances grew 13% during the January-June period of 2014, with a 97% growth recorded in sukuk.

In the same way, current accounts saw a 38% increase and there was persistent drop in the cost of funds in comparison with the year-ago period.

Net operating profits for the second quarter were BD2.6m as against BD3m for the same period last year whereas net provisions for impairment were BD1m as against BD1.7m earlier.

In the second quarter of this year, the Bahraini lender s net operating profits stood at the levels of BD2.6m compared to BD3m in Q2, 2013, and net provisions for impairment declined to BD1m from BD1.7m reported in the same period last year.

Net profit for the second quarter of the current year increased to BD1.5m from BD1.3m earlier.

The BisB Chairman Abdul Razak Al Qassim has stated that the board of directors has approved a five-year strategy up to 2018 in collaboration with Boston Consulting Group, the implementation of which is underway.

He also said, "Key objectives of the new strategy are growth of core activities, disposal of non-performing investment assets and tapping opportunities for entering new markets.

The Chief Executive Mohammed Ebrahim Mohammed has opined that they think results are all right in light of the existing taxing scenario of the economy, chiefly as core operations facilitated all revenues.

He further stated, "Whatever has been achieved is a reflection of the new strategy with full reliance on revenues and fees from finances and major activities has generated 82pc of the operating revenues."

Mr. Mohammed added, "All revenues are free from revaluations or unearned profits, with the exception of the successful exit from some investment portfolios and the selling of lands, and the semi-final exit from listed equities with a net gain of BD3m."

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Source: TendersInfo (India)

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