Bahrain Islamic Bank realizes $16m in 2009 first quarter net profits

In a press release sent to the media on Wednesday the Bank announced its financial results for the first quarter realizing BD6m in net profit, equivalent to $16m.

In a statement Mr. Khalid Abdulla Al Bassam, the Chairman, reported that, "By the help of Allah the Bank was able to continue its growth by increasing its assets and well preserving the Capital Adequacy Ratio (CAR) to around 27% in comparison to 12% - the ratio required by the regulatory authorities. This is a clear indication of the Bank's safe and solid financial position. What we achieved is in harmony with our long term policy which enabled the Bank to weather the International financial and economic crisis."

Mr. Al Bassam also stated that the Bank has a strategy which suits the present circumstances, where great emphasis is put on liquidity and abstaining from highly risky investments, this is combined with providing the best possible banking products and services. The Bank strategy has proven its effectiveness and ability to continue growing the bank business even during these challenging times. This is resulted in earning "The Best Local Islamic Bank" prize awarded by the Bank by Islamic Finance News Award Poll 2008.

The Banks strong financial position has also earned it P2/Baa1 credit rating from Moody's, the International rating agency in February 2009. That was the first time in Bahrain a commercial Islamic Bank receives any rating from Moody's Investors Service. This has further enhanced the Bank's reputation and confirmed its strong financial position.

On his part, Mohammed Ebrahim Mohammed, C.E.O. of the Bank, expressed his satisfaction for these financial results which were achieved in the first quarter of 2009 and described this period as the most difficult one for the regional and global financial institutions due to the present ongoing International financial crisis, with some countries experiencing recession, and a very slow economic growth in others.

Mr. Mohammed Ebrahim Mohammed added that customer deposits have increased by 5% in the first three months of this year as compared to same period of last year. Islamic Financings has experienced the same increase for this same period. On the other hand the CEO has expressed his full satisfaction for the continuous growth of the Bank and the emphasis on retail banking where the first quarter of 2009 was one of the most active periods as far as financings, opening of current and saving accounts and attraction towards the advanced new products and services introduced by the Bank. He affirmed that the Bank will introduce new services and products during the remaining part of this year.

Mr. Mohammed Ebrahim Mohammed also mentioned that the bank is preparing to inaugurate its fist financial mall in the few months to come and that the Bank will continue to develop and improve its existing branches to accommodate the ambitious plans that aim at providing the best and most sophisticated services to our clients.