BisB achieves BD 2.2m net profit in first quarter of 2018

Manama : Bahrain Islamic Bank (BisB) announced that it has achieved a net profit of BD 2.2 million for the period ending on 31st March 2018 compared to a net profit of BD 0.6m for the same period last year, an increase of 267 per cent. 

The Bank also achieved a profit before impairment allowances of BD 4.2m for the period ending on 31st March 2018 compared to BD 3.4m for the same period last year.

The Board has approved the Bank’s financial results in its meeting held yesterday, where the Chairman of the Board of Directors, Dr. Esam Abdulla Fakhro, announced the Board’s approval for the Bank’s financial statements for the period ended on 31st March 2018, expressing the Board’s satisfaction with the excellent results, which reflected the Bank’s strong financial performance and the effectiveness of its strategy and work plan during this period.

Dr. Esam Abdulla Fakhro, Chairman of the Board of Directors, confirmed the Bank recorded a total income of BD 10.2m for the period ended 31st March 2018 compared to BD 9.8m for the same period last year. Earnings per share have also increased to 2.05 fils for the period ending on 31st March 2018 compared to 0.56 fils for the same period last year, an increase of 266pc. The Bank recorded a total owners’ equity BD 109.9m as of 31st March 2018 compared to BD 122.3m as of 31st December 2017, a decrease of 10.1pc due to the impact of adopting FAS 30.

The Chairman went on to confirm that the Bank has maintained a strong portfolio during the first quarter of 2018 with a liquid assets to total assets ratio of 10.6pc, in addition, the Bank continues to limit its exposure of its real estate portfolio during the first quarter of 2018, cementing the Bank’s keenness to continue to follow a prudent and conservative work policy across various transactions and financing. 

The Board revealed their continued satisfaction with implementation of the Bank’s strategy “Ishraq – Back to Basics” whilst streamlining their operations, resulting in a positive results achieved enabling the Bank to enjoy a comfortable financial position.

Hassan Jarrar, BisB Chief Executive Officer, revealed his appreciation: “The positive results of this period of the year reflect the strong financial position and continuous improvement in the Bank’s various business sectors. The Bank also heavily relies on revenues and fees from finances and other major activities as well as ongoing efforts to expand the customer base as a result of the Bank’s unique services presented to all its customers.”

Jarrar also explained that the total assets decreased to BD 1,212.7m compared to BD 1,228.6m as of 31 December 2017 by 1.3pc, while the financing and investment in Sukuk portfolio has increased to BD 977.6m compared to BD 968.6m as of 31 December 2017 by 0.9pc. In line with the Bank’s strategy to focus on the core banking activities, the other investments have decreased to BD 81.1m compared to BD 84.1m as of 31 December 2017 by 3.6pc. Customer accounts have decreased to BD 887.7m compared to BD 925.4m as of 31 December 2017 by 4.1pc. 

Jarrar explained that current accounts increased to BD 144.4m as of 31 March 2018 compared to BD 131.7m as of 31 December 2017, an increase of 10pc. In addition, placements and borrowings from financial institutions increased to BD 201.5m as of 31 March 2018 compared to BD 169.4m as of 31st December 2017, an increase of 19pc.

Total expenses were declared at BD 6m, a decrease of 6.3pc over the same period last year which was equal to BD 6.4m. The Board of Directors has specified net impairment allowance for the same period in the amount of BD 2.1m compared to BD 2.8m for the same period last year.

Hassan Jarrar assured that the Retail Banking sector witnessed a launch of revamped products and services, including the launch of Tejoori Al Islami savings account promotional campaign, which offers big and attractive financial prizes to customers. In addition, the Bank introduced the Visa Credit Card campaign, which offered two packages to attend the 2018 FIFA World Cup Russia semi-finals, and a Grand Sale campaign in February included discounts on all its financial products and cash backs.