BisB Profit rises 12.2pc

Bahrain Islamic Bank (BisB) reported a net profit of BD 11.4 million for the year ended December 31, 2018, compared to BD 10.1m net profit in the last year; an increase of 12.2 per cent. Earnings per share have also increased to 10.83 fils for the year ending on 31st December 2018 compared to 9.65 fils for the same period last year. Dr Esam Abdulla Fakhro, Chairman of the Board of Directors, said that in the fiscal year ended December 31, 2018, the Bank achieved a net operating income of BD 20.3m, compared to BD 16.3m last year, an increase of 24.1pc. He added that the Board of Directors of the Bank has decided to take net impairment provisions during this year amounting to BD 8.9m, compared to BD 6.2m, last year.

Total operating income was BD 45.5m compared to BD 42.9m for the same period last year, an increase of 6.1 pc. Total income from jointly financed assets for the was BD 53.9m compared to BD 47.3m for the same period of last year, an increase of 14pc. For the fourth quarter, the bank recorded BD 4.5m net profit during the last quarter of 2018, compared to BD 4.7m net profit during the same period in the last year, a decrease of 4pc. Earnings per share have marginally decreased to 4.29 fils for the fourth quarter of 2018 compared to 4.47 fils for the same period last year.

The net operating income increased to BD 7.6m for the fourth quarter of 2018 compared to BD 3.3m for the same period last year, an increase of 128 pc. The total operating income for the fourth quarter of 2018 amounted to BD 14.2m compared to BD 10.3m for the same period of last year, an increase of 37.8pc. Also, the net provisions charge amounted to BD 3.1m for the last quarter of 2018 compared to net impairment release of BD 1.3 million, for the same period last year. The total income from jointly financed assets for the fourth quarter of 2018 amounted to BD 14m compared to BD 12.9m for the same period of last year, an increase of 8.8pc.

Hassan Amin Jarrar, Chief Executive Officer of the Bank said that Islamic finance in the Bank has increased by 3.4pc, coupled with a rise in current accounts of 1.2pc compared to 2017. However, the cost of deposits has surged by 39.3pc from the last year. Jarrar said that the Bank is still in the process of disposing its non-yielding assets and reducing its non-performing facilities. This will require more time and effort to enhance the Bank’s asset management with the best available means.