BisB posts BD11.2 mn net profit for 2015

Bahrain / Emirates Business

BisB announced that it has achieved positive financial results which reflect on the continuous improvement on the Bank’s position. The Bank has realized BD 11.2 million as net profit for the year ended on 31st December 2015, compared to BD 9.3 million for the previous year, an increase of 20%. The Bank has registered net profit of BD 2.6 million in the last quarter of 2015 as compared to net profit equal to BD 2.7 million for the same period last year, a decrease of 4%.
Abdul Razak Al Qassim – Chairman of the Bank explained, in this context, that in the year ended on December 2015 the Bank registered BD 41.7 million as gross income compared to BD 42.9 million for last year, a decrease of 3%. He explained that the Board of Directors has decided to set aside provisions amounting to BD 9 million during the year as compared to BD 11.9 million for last year.
Al Qassim then proceeded to state that operating profit reached BD 10.3 million in last quarter of 2015 compared to BD 13.7 million for the same period last year, and net provisions of BD 1.7 million in last quarter of 2015 as compared to BD 5.8 million for the same period last year, and net profit of BD 2.6 million as compared to net profit of BD 2.7 million for same period last year.
In a Press Release issued by the Bank, Abdul Razak Abdulla Hassan Al Qassim – Chairman of the Board of Directors announced that the Board has approved the Bank’s Financials for the year ended on 31st December 2015, where the Board has expressed its satisfaction with the positive results which highlighted the strong financial performance achieved by the Bank and reflect on the continuous progress in the Bank’s performance and the success of implementing the Business Plan during the year.
The Chairman also explained that the Bank has kept a strong balance sheet during 2015, and good liquidity ratios, which confirms that management of the Bank is keen to pursue a conservative and prudent business policy on all aspects of operations and finances availed by the Bank.
Abdul Razak Al Qassim then added that the year 2015 has witnessed many positive developments on different levels of the Bank, one important development was the appointment of Hassan Amin Jarrar as Chief Executive Officer of the Bank, an experienced banker with 27 years in the field and a strong academic & managerial credentials. He wishes Jarrar every success on his journey with the Bank.
On the backdrop of the positive financial results, the Chairman announced that the Board of Directors has decided, and after obtaining the required formal approvals, to invite the shareholders of the Bank to the Annual General Meeting of 2015, to be held on 23rd March 2016, for approving distributing Bonus Shares amounting to 4% of paid-up capital as of 31/12/2015 as dividends to the shareholders, and participate in the election of new Board Members for the next three years.
On his part, Hassan Amin Jarrar the CEO has hailed the positive results of this year which has been attained by the Grace of Allah, and by the collective efforts of all employees. The results reflect on the strong financial position of the Bank where the Bank has relied fully on revenues and fees from finances and major activities which represent more than 97% of gross revenue. Persistent efforts are on full force to expand the customer base of the Bank within the new policies adopted in the Bank through attracting SME’s and large companies operating in Bahrain.
The CEO then went on to explain that Islamic Finances witnessed an increase of 16% and client investment deposits increased by 8% as compared to 2014. Deposit expense decreased by 24% as compared to last year. He pointed out that the Bank entertains a strong liquidity ratio of 13.7% and Capital Adequacy ratio of 17.73%. All this is attributed to the wise policies adopted by the Bank and the steady advancement attained in executing its five pillar’s Strategy and by concentrating on going back to basics in the Bank’s work.
Hassan then explained that by the end of 2015 the Bank was able to reinforce its financial status by the successful launching of its capital increase exercise, by subscribing to 100% of its ordinary shares amounting to 170,940,171 with an offered price of 117 fils against its nominal value of 100 fils, during the period from 15th to 29th November 2015. This increase helped in reinforcing the Bank’s status and improving its relations with the supervising bodies and rating agencies, besides supporting its efforts in enhancing its bottom line.
On a related context Hassan was optimistic that Moody’s has raised the long term rating of the Bank from caa1 to b3 issuer ratings with a positive outlook, explaining that this is the first rating of its kind for the Bank since Moody’s started rating the Bank 7 years back. This status has been achieved as a result of the increase in the Bank’s capital and the concentrated and targeted efforts in line with the Bank’s Strategy for 2016 which has embraced the theme of “Going back to basics” which constitute the basic pillar of the Bank for the coming three years.
Representing an outstanding leap in providing services to its clients, the Bank will, in the near future, inaugurate its first digital Branch in Bahrain where all services will be conducted via mobile phone. All banking services will be carried out automatically and electronically and within the shortest possible time.
In light of the Bank’s Management concern to recruit qualified staff and to provide opportunities to outstanding employees, Hassan has announced that the Bank will enhance its Executive Team with outside and inside Expertise and by promoting a number of promising young cadres which will positively support the Bank’s efforts in forming an outstanding and high quality Management Team. He explained, in this context, that the Board of Directors has approved the new Organization structure of the Bank, which is in line with the requirements of the coming period with its most important theme of: “Going back to basics in Banking”. This will result in an increased productivity and offering of high standard banking services.
The CEO then expressed his satisfaction that the Bank has received the “Best Islamic Retail Bank Award” in the Kingdom of Bahrain for 2015 bestowed on it by the International Finance Magazine (IFM), This award has been conferred upon the Bank due to its positive contribution in the development of Islamic Finance in Bahrain and its keenness to provide excellent services to its customers plus the remarkable array of its products, plus the growth in its assets and the development in it business.
He also Acknowledged the appreciation received from the Islamic Banking Community which has nominated the Bank to the award of the Best performing retail Bank in the Arabian Gulf and Bahrain which is conferred by the International Islamic Banking Conference in its 22nd edition as a result of the Banks outstanding performance in the Islamic Financial and Banking services sector.
In conclusion, the Chairman and the Acting CEO expressed their thanks to the Members of the Board of Directors for their continued support, 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 all the shareholders and in particular to National Bank of Bahrain (NBB), Social Insurance Organization (SIO), and Islamic Development Bank (IDB), and the respected customers for choosing BisB for conducting their banking and financial services activities, and to all staff of BisB for their efforts and dedication in performing their duties. Looking forward towards a successful and prosperous 2016.