Manama, Bahrain (24 April 2012):
Bahrain Middle East Bank (B.S.C) today announced the results for its three month period ending March 31, 2012- with net income increasingby nearly two fold to reach US$ 1.7million as compared to US$ 0.9 million in the same period of 2011. Following its remarkable successesandturnaround witnessed over a short period of time pursuant to a new Management take over in 2009, the Bank's performancewas in line with the broader plan set for 2012 -with a growth indepth and scale of activities that were already successfully tested and proven in 2011 as a part of itsPhase Istrategy roll-out. TheBank's newmodel provides for the foundation necessary to carry-out multi-dimensional business activities that featuresviability, sustainability, scalability and diversity in sources of income.
Highlights of performance for the period included:
§ Total Income - US$ 4.0 million (3M-2011: US$ 3.0 million)
§ Net income - US$ 1.7 million (3M-2011: US$ 0.9 million)
§ Capital adequacy - continued to remain strong showing further consistent improvement to 26.9% as compared to 24.7% at end-2011 and 23.1% at end March 2011
§ Investment realizations and payment of proceeds to investors - amounted to US$ 2.3 million during the period(3M-2011: US$ 3.2 million); thereby taking aggregate distributed since2009 to US$ 17.7 million
Commenting on the results Mr. Wilson Benjamin - Chairman of the Bank stated that:
"We are delighted with the outstanding performance of the Bank on the back ofhaving successfully completed its restructuring process and the implementation of a three pronged strategy; that formed an integralpart of Phase Iand incorporated: i) Build new business lines, ii) resolve issues of prior periods and iii) implement the new strategy at a smaller scale to ensure its viability and long-termsustainability. The results of Phase 1 have been achieved with great success and has enabled the Banknavigate through the most challenging and difficultcircumstances and yet deliver exceptional results notwithstanding the headwinds faced by the institution from many directions
The Bank's success in such a short span of time has better geared itimplement Phase II of its plan in a more focused and confident manner. The first quarter resultsatteststo the inherent potential of its new modeland further reinforces our confidence of the institution's promising future"
Mr. Akbar Habib, Chief Executive Officer said that:
"2012 marks the beginning of Phase II of the Bank's plan which encompasses growth oriented strategies based on a multi-dimensional business model - which has alreadybeen tested and proven with good success in 2011.
The Bank's current performance is a direct result of design and strategic planning over the last fewyears and not a merecoincidence. The improved performance for the first quarter is directly correlated with the activities initiated over the same period - which has beenimplemented on a smaller scale last year to ensure the viability and sustainability of its multi-dimensional model. One of the main features ofits business model is in its scalability based on the same drivers that drove the Bank's performance last year,alsotaking into considerationthat thisincreasing level of activity is in line with the Bank's modest size and resources.
We expect the model to continue to deliver in line with envisaged plans, however, cautionismaintained due to theuncertainties that continue to prevail across regional and international markets that requires utmost vigilance and prudence"
-Ends-
© Press Release 2012
