Khaleeji Commercial Bank reports net profit of BD3.1m

Total assets marginally grew by 1.9% to BD473.6m compared to last year. However financing assets grew significantly by 26.5% to BD200.6m and Unrestricted Investment Accounts also showed a growth of 25% to BD203.6m. The Bank continued to maintain strong liquidity and capital positions with a liquid asset ratio of 30.5% capital adequacy ratio of 34%. Based on the results the Board of Directors has recommended to the Bank's AGM a dividend of 10% in the form of bonus shares after obtaining all regulatory approvals.

Dr. Fuad Al-Omar, Chairman of Khaleeji Commercial Bank, said, "Against the backdrop of global financial crisis and difficult regional environment, we are pleased with the results of the Bank, which is in line with long term objectives. The Bank continued to execute a business strategy based on a hybrid business model leveraging its investment banking capabilities while growing its commercial banking business. During the year, the Bank expanded and diversified its business and customers while ensuring strong liquidity and capital position is maintained. We have also been prudent in increasing the Bank's provisions significantly during the year."

"As we look to 2010, we foresee a challenging year ahead although there are opportunities for growing the Bank's business especially in the retail banking segment. We will grow our retail banking business by expanding our branch network, electronic distribution channels and offering several new consumer finance products during the year," added Dr. Al Omar.

CEO and Board Member of Khaleeji Commercial Bank, Mr. Ebrahim H. Ebrahim, commented on the results and added, "In spite of the difficult market conditions we have continued to grow and diversify our business. Income from commercial banking activities grew by 41.4% during the year compared to 2009. We also continued to launch new products that meet our clients' needs. In June we closed subscription to Global Logistix at BD93.4ms in an extremely difficult market and also launched Al wafer saving accounts which was well received by our customers. Growth in financing assets as well Unrestricted investment accounts coupled with a 87.5% increase in our customer base during the year indicate continuing confidence of our customers and opportunity to grow our business."

He also noted that the Bank has been very conservative in making impairment provision of BD9.3m affecting the net income.

"We are cautiously optimistic about the prospects for 2010, especially given our plans to expand our consumer finance business. We expect to launch several new products in 2010 targeted at different segments of the market. The Bank now has the scale, financial strength and institutional capacity to capitalize on the opportunities available," he added.