Khaleeji Commercial Bank announces net profit of BD1.1m for the third quarter to reach BD8.3m for nine months

During the year, the Bank's businesses continued to expand with unrestricted investment accounts (URIA) growing by 20% to BD195m and financing assets growing by 26% to BD206m. The Bank continued to maintain a good financial position with liquid assets ratio of 27% and capital adequacy ratio of 35%.

Dr. Fuad Al-Omar, Chairman of KHCB, remarked:

"The Bank continues to maintain a strong financial position showing good results for the quarter despite market conditions continuing to be difficult. As the Bank has done for the past periods, it has continued to grow its business while ensuring sufficient liquidity is maintained. A strong capital position as reflected in the high capital adequacy ratio indicates significant growth potential as the market recovers. The Bank will continue to expand and diversify its business and customer' base through introducing new products and enhancing its existing services."

CEO and Board Member of KHCB, Mr. Ebrahim H. Ebrahim expressed his satisfaction on the results and added, "Given the difficult market conditions, we have continued to grow especially in the commercial banking sector. Income from Commercial Banking activities grew by 49% during the period compared to 2008. Growth in unrestricted investment accounts as well as similar growth in financing assets indicate continuing confidence of our customers and opportunity to grow our business. During the 3rd quarter alone we have been able to increase our customer base by 62%."

He also noted that the Bank has been very conservative making impairment provision of BD4.7m affecting the financial results.

"We have recently taken ambitious steps to developing and offering new and innovative products to the market. We launched in July the Al Wafer account (A Shari'a compliant mudharaba account, offering cash prizes of $1m every year), which was well received in the market. We expect to launch several new products in 2010, targeted at different segments of the market," Mr. Ebrahim added.