Net profit of USD 8.8 million (BD 3.3 million), represents an increase of 577% over 2012
Bank continues to maintain an Excellent Capital Adequacy Ratio of over 16% with very strong liquidity
Enhanced network to 10 Branches and 28 ATMs
Won the prestigious 2013 Bahrain eContent Award
Flagship retail product "Ayadi Savings Scheme" grew by 19.5% in 2013
February 15, 2014, Manama, Bahrain: Bahraini retail and commercial banking institution, BMI Bank today reported a net profit of USD 8.8 million (BD 3.3 million) for the fiscal year ended 31st December 2013, an increase of 577% as compared to a net profit of USD 1.3 million (BD 0.5 million) recorded over the corresponding period in 2012. The Bank posted a net profit of USD 6.5 million (BD 2.4 million) post provisions for the fourth quarter of the year as compared to a net profit of USD 0.3 million (BD 0.1 million) during the same period in 2012. The total income for the period was USD 61.4 million (BD 23.1 million) as compared to USD 56.2 million (BD 21.2 million) reported during the corresponding period in 2012. Total assets at the end of 2013 stood at USD 1.9 billion (BD 0.7 billion). The Bank's net interest income for 2013 increased by 10.7% to USD 45.6 million (BD 17.2 million) from USD 41.2 million (BD 15.5 million) in 2012.
Announcing the record profit, Jamal Al-Hazeem, Chief Executive Officer of BMI Bank said:
"Following our full-year return to profitability in 2012; the first time in the last five years, we moved into 2013 equipped with an excellent Capital Adequacy Ratio, strong liquidity and a stable and consistently growing business. We continued our emphasis on product innovation, stronger levels of customer service and transparency whilst focusing on significantly increasing our brand equity and market share within Bahrain through the launch of several new promotions, initiatives and partnerships to maximize our shareholders' returns.
I am very pleased to report a net profit of USD 8.8 million (BD 3.3 million) for 2013 which represents our second full-year of profitability as well as our tenth straight net quarter of profit. Our profit, in 2013 represents an increase of 577 % over 2012 and reflects a healthy growth in our core business as indicated by the improvement in our loan to customer deposit ratio which now stands at a healthy 71%. In 2013, we repaid a USD 80 million syndicated term loan facility six months before the scheduled due date, without the need to refinance or rollover; a further testament to our growing reputation as a strong local retail Bank with excellent liquidity and a Capital Adequacy Ratio at over 16%.
During 2013, we successfully controlled our operating expenses, reduced our cost of funds, as well as improved our yield through appropriate product pricing and better control on asset quality. We take immense pride in the fact that our Bank recently won the prestigious 2013 Bahrain eContent Award for our group website and eBanking portal. At BMI Bank, we wholeheartedly embrace technology and explore ways to be able to serve our loyal customers through contemporary and convenient online services that help in simplifying their interaction with us in a safe and secure environment.
The Bank continues to demonstrate a strong return on our investments in people, system, product, services and brand as reflected in its position as a young tech-savvy key player amongst local banks and is gaining wide spread recognition for its innovative financial solutions.
Going forward, our focus on growing our business along with customer numbers will continue, backed by our excellent capital position and strong liquidity. We will continue to provide our customers with a range of financial solutions through quality products and services that deliver a profitable, sustainable and consistently growing performance creating genuine value for all our stakeholders. We will also work on executing the details of our recently signed Share Purchase Agreement with Al Salam Bank Bahrain (ASBB) as we finalize all aspects of our business combination.
I take this opportunity to thank the Central Bank of Bahrain, our Board of Directors, our shareholders and our staff for their continued support and commitment and above all our loyal customers for their confidence in our products, services and capabilities."
About BMI Bank B.S.C. (c)
Bahraini retail and commercial banking institution, BMI Bank is a retail bank, registered in Bahrain and regulated by the Central Bank of Bahrain. The Bank offers its customers a complete range of innovative and unique financial products and services through its extended network of 10 branches and 28 ATMs as at the end of 2013. The Bank's multi-award winning eChannels, including its corporate website www.bmibank.com.bh have been honored with various prestigious awards helping in consolidating both its position as well as perception within the country as a young tech savvy retail Bank. Adding further support and credibility towards its image, BMI Bank were recently awarded an eContent award at the prestigious 2013 Bahrain eContent Award ceremony for its group website www.bmibank.com.bh as well as for its refreshed state-of-the-art online banking portal under the eBanking category. The Bank reported a net profit of USD 8.8 million (BD 3.3 million) for the fiscal year ended 31st December 2013, an increase of 577% as compared to 2012 which represents its second full-year of profitability as well as its tenth straight net quarter of profit. Total assets at the end of 2013 stood at USD 1.9 billion (BD 0.7 billion) with an excellent Capital Adequacy Ratio of over 16% and very strong liquidity as reported during 31st December 2013.
On the 9th of September 2013, the Board of Directors of Al Salam Bank-Bahrain (ASBB) and BMI Bank announced that they had resolved to merge the two entities. Correspondingly the shareholders of BMI Bank approved the business combination with ASBB at the Extraordinary General Meeting (EGM) held on the 7th of November 2013 following a similar approval by the shareholders of ASBB during its EGM on the 8th of October 2013.The business combination would be carried out by way of exchanging 11 ASBB shares for each BMI Bank share wherein ASBB would acquire 58,533,357 BMI Bank shares of BD1 each and issue 643,866,927 ASBB shares of 100 fils each. On the 2nd of February 2014, the Shareholders of both Banks' confirmed the conclusion of the business combinations after receiving the approval from their shareholders at their respective extraordinary general assembly meetings.
BMI Bank operates an international branch in Qatar, owns and operates the Diners Club cards franchise in Bahrain and has a 21.33% shareholding in Gulf African Bank - Kenya. BMI Bank's shareholders include some of the strongest and most respected financial institutions across the GCC, including BankMuscat (SAOG) the flagship financial institution in the Sultanate of Oman. With assets worth over USD 18 billion, BankMuscat (SAOG) is the leading financial services provider in Oman with a strong presence in Corporate Banking, Retail Banking, Investment Banking, Treasury, Private Banking and Asset Management. BankMuscat has the largest network of 137 branches, 415 ATM, 141 CDM's and 4500 POS terminals in Oman.
BMI Bank currently offers its local customers a range of retail products and services including regular savings and current accounts, Visa gold and classic credit cards, a Platinum credit card with rewards from Gulf Air's Falconflyer program, a Diners Club credit card including an Ayadi Plus Diners Club credit card and La Carte, a co-branded Visa credit card in partnership with Geant Hypermarket Bahrain and the recently launched Muharraq Club Titanium Credit Card. The Bank also offers customers the chance to win a total of 396 prizes worth in excess of USD 1,900,000 through its flagship savings scheme "Ayadi" including 6 Diyar Homes Villas as Grand Ayadi prizes as well as an "Ayadi for Students" account exclusively for students with prizes awarded during the year. The Bank also offers customers fixed deposits, the Salaf range of personal, auto and mortgage loans and a new phone banking and mobile banking service that enables customers to carry out most of their regular banking transactions in a safe and secure environment using their phones. BMI Bank recently unveiled "Prestige" its premier service proposition, catering to the affluent individual looking to receive personalized attention and tailored financial solutions from their banking partner.
In line with its ongoing commitment towards building a stronger CSR program and giving back to the community, BMI Bank has firm financial commitments towards various local charities including the Al Sanabel Orphans Care Center, Royal Charity Organization, Muharraq Social Welfare Center, American Mission Hospital's (AMH) Community Outreach Program, the Island Classic Charity Golf Tournament and Think Pink Bahrain as well as with the Bahrain Red Crescent Society, Bahrain Disabled Sports Federation, Al Noor Charity Welfare and the Children & Mother's Welfare Society amongst others.
In addition to Retail Banking BMI Bank also offers Wholesale, SME, Private and Islamic Banking as well as Financial Institutions Group (FIG) and Treasury services.
For further information, please contact: Gordon Andrade; Head, Corporate Communications; BMI Bank - Bahrain; E-mail: gordon.andrade@bmibank.com; Cell: +97339782225
© Press Release 2014
