BisB nets profit of BD3.1m

Manama : Bahrain Islamic Bank (BisB) has announced a net profit of BD3.1 million for the six months period ended 30 June 2016, compared to BD8.2m net profit a year ago.  

This represents a drop of 62.4 per cent in the net profits, which included non- recurring profits in the prior year period, as well increase of operational expenses including staff cost by 18.5pc and impairment provision to overcome any decrease in the market value of the finance or investment. 

For the three months ended 30 June 2016, the bank reported BD1.4m net profits, compared to BD5.1m for the same period of 2015, a drop of 73.3pc.

The mid-2016 results showed an increase in the total assets by 3.7pc, reaching BD1,012m, while financing assets rose by 8.16pc, totaling BD662m. At the same time, Tejoori Account and other savings accounts rose by 5.3pc compared to last year, while current accounts rose by 10.4pc compared to 2015.

The bank recorded a drop in the total net revenues, which totalled BD18.7m for the first six months of the current year, compared to BD21m for the same period of 2015, a drop of around 10.7pc. For the three months ending June 2016, total net totalled BD9.1m, against BD11.2m during the same period of 2015, a drop of 18.9pc. The bank maintained a strong capital adequacy of 18.1pc.

Commenting on the results, Chairman Dr. Esam Abdulla Fakhroo said despite the drop in the bank’s net profits during the first half of 2016, our plans to restructure the bank are proceeding afoot, by implementing the 5-year plan which was launched in the year 2014.

For his part, Hassan Amin Jarrar, the bank’s Chief Executive Officer, said: “The bank has passed through difficult conditions over the past few years, and that the restructuring of this well-established and reputable bank will take a considerable period of time.”