Bahrain Islamic Bank Realizes BD 8.4 million as net profit in 2016
Bahrain Islamic Bank (BisB) announced that it has realized BD 8.4 million as net profit for the year ended on 31st December 2016 compared to a net profit of BD 11.2 million for the previous year i.e. a decrease of 25%. The Bank has registered a net profit equal to BD 4.1 million in the final quarter of 2016 compared to net profit equal to BD 2.6 million for the same period of last year, an increase of 57%.
In this respect, Dr. Esam Abdulla Fakhro – Chairman of the Board of Directors explained that the Bank has registered BD 41.7 million as operating income for the year ended on 31st December 2016 compared to BD 41.7 million for last year, stating that the Board of Directors has decided to take BD 9.7 million as net impairment provisions for the year, as compared to BD 9 million for last year.
Dr. Fakhro indicated that total operating income for the last quarter of 2016 reached BD 13.1 million compared to BD 10.3 million for the same period last year, net provisions reached BD 3.8 million for the last quarter of 2016 compared to BD 1.7 million for the same period of last year, net profit realized is BD 4.1 million compared to BD 2.6 million for the same period last year.
In a Press Release issued by the Bank yesterday, Sunday, Chairman of the Board of Directors announced that the Board has approved the Financial Statements for the financial year ended on 31st December 2016, and that the Board of Directors has expressed its satisfaction with the financial results of the Bank which reflect the continued improvement in the Bank’s financial performance and the progress in the implementation of the work plan during the year.
The Chairman of the Board of Directors then said that despite the difficult circumstances experienced in the region and the economic challenges faced by the banking market in general, the Bank was able keep a good balance sheet and liquidity ratios during the year. He pointed out that the Bank's management continues to pursue a careful and conservative policy in its various transactions and financings offered by the Bank.
Dr. Fakhro then explained that the year 2016 has witnessed a significant improvement in many work areas in the Bank, most notably the launch of the Bank internal strategy "Shine-Back to Basics," which aims at business development in the Bank, and the development of staff abilities to be in line with shareholders and customers expectations, simultaneously. In addition to enhancing the quality of the Bank's risk management processes and to support the framework of governance, and to pay attention to staff training and development, as well as to take advantage of modern technology to ensure that banking services are accessible to customers.
For his part, Mr. Hassan Amin Jarrar Chief Executive Officer of the Bank hailed the good results achieved by the Bank, which has reflected the improvement in its financial position, explaining that the Bank relies on revenues and fees from finances and principal activities, which represents 99% of total income, in addition to ongoing efforts to expand the customer base within the framework of development plans adopted by the Bank early last year.
The Chief Executive Officer then pointed out that Islamic finances have increased by 13%, in addition to the increase in customer investment accounts by 9% as compared to 2015. Cost of deposits also increased by 46% as compared to last year, stressing that the Bank enjoys good liquidity ratio standing at 12.2% and capital adequacy ratio of 20.7%, this stems from the wise policy pursued by the Bank, and the development resulting from continued implementation of the Bank's "Shine - back to basics" strategy, launched by the Bank early last year and constitutes five pillars, these are: the re-organization and the reformation of the Bank’s financial position, streamline and improve the operations of the Bank, and focus on automation, and the investment in staff with the aim of developing their talents and abilities, as well as achieving excellence through the provision of quality services to customers.
Mr. Hassan Jarrar then explained that despite the drop in oil prices and the consequent effects that impacted various sectors globally, in addition to the difficult conditions in the region and the intensity of competition in the market, but the Bank was able to maintain its position by continuing to offer a variety of products and to provide advanced banking that meet customers' needs and aspirations.
Mr. Jarrar then added that the Bank still continues to get rid of its non-productive assets and the reduction of non-performing finances, in the framework of enhancing its assets management operations by the best possible strategies.
In addition, Mr. Hassan Jarrar noted the positive progress made by the Bank in consolidating its financial position by revising its risk management approach, strengthening the risk governance function, enhancing the provision policy, and ensuring the instilling of the correct risk culture in the Bank.
On the other hand, Mr. Hassan Jarrar praised the development made by the Bank in providing various types of sophisticated banking services to its clients, in a way that ensures the completion of all their banking transactions automatically, within the least possible time, safely and conveniently through the Bank's first digital branch in Bahrain, located inside the Diplomatic Area Manama Branch.
In light of the continuing efforts made by the Bank in developing and taking care of the human element, Mr. Jarrar explained that many internal training programs are offered for the staff at various administrative levels in the areas of leadership and development, not to mention the Bank efforts in appending a number of its senior staff in programs accredited by specialized colleges and institutes for senior executives development in the areas of management or other areas of business development.
In a related development, the Chief Executive expressed his satisfaction on obtaining a number of prestigious awards by the Bank recently, namely: the award for "the fastest growth of a credit card in Bahrain for the year 2016", within the context of the annual awards granted by “International Finance” magazine; and Award for the best performance by an Islamic bank in Bahrain for the year 2016 granted by the World Islamic Banking Conference in its twenty third edition, in addition to the Bank’s receiving a shield and a certificate of honor from Visa International for its "outstanding performance in providing Visa credit cards and direct debit card services, and the steady growth in Visa credit and direct debit cards.
In conclusion, the Chairman & CEO expressed their thanks and appreciation to the Members of the Board of Directors for their continued support, and to the executive management team and all the staff of the Bank for their efforts and dedication to work, 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 respected customers for choosing BisB for conducting their banking and financial services activities, thanks are also due to the major shareholders of the Bank represented by: National Bank of Bahrain (NBB), Social Insurance Organisation (SIO), and Islamic Development Bank (IDB), and we look forward to the year 2017 to be a year full of success and righteousness and the realization of more achievements to the Bank.