08 March 2004
Bank of Bahrain and Kuwait (BBK) is considering to form a subsidiary dealing with insurance sectors widening BBK’s customer-service base, the chairman of the bank’s board of directors, Murad Ali Murad, said.
He said that the institution was also considering to restructure shareholding to offer more opportunities to investors, particularly in Kuwait.
BBK has three subsidiaries namely BBK Financial Services, Credimax and Al Khaleej Islamic Investment Bank. “Credimax has achieved excellence in its specialised segment of card-related services,” Murad said, adding that we would continue to concentrate on the innovative technology to cope with the future challenges in this regard.
“We’re currently working to open up BBK shares for more shareholders as shares will also be listed on the Kuwait Stock Exchange (KSE) during this year,” he said. “The insurance sector has a huge growth potential in the Kingdom, and the institution is working on different options including establishing a fourth subsidiary in order for the insurance sector to tap existing opportunities in the market.
Murad, who conducted the shareholders’ annual general meeting, said the institution would continue to play an active role in project financing. “We’re keen to participate in major developmental projects in the Kingdom.
“Aluminium Bahrain, Bahrain Petroleum Company and Hidd power plant are the principal projects where good investment opportunities can be available,” the chairman said. “In 2003, a number of infrastructure and industrial projects were initiated to stimulate various sectors of the economy. These initiatives had a positive impact on the economy. BBK, which plays a major role in providing financing for key industrial and infrastructure projects, spearheaded the Kingdom’s continued industrial diversification,” the chairman in his annual statement said.
The meeting was also attended by chief executive officer and general manager Dr Farid Al Mulla, members of the board and shareholders who ratified the financial statement and appropriations for 2003.
The meeting also approved a cash a dividend of BD16.5 million to shareholders. BBK’s total assets crossed the BD1.3 billion mark with a persistent upward trend during the last four years.
The BD 23.3 million net profit for the second consecutive year was not only the highest in BBK’s history but also the highest among all commercial banks in the country. The net profit for last year increased by 16.5 per cent to reach BD 23.3 million while total assets as at December 31, 2003, stood at BD 1.3 billion, an increase of 8.1 per cent over that of the previous year.
BBK’s consolidated profit represents an increase in return on shareholder equity from 16.1 per cent in 2002 to 17.8 per cent last year. “
“This is a significant achievement given the competitiveness of local markets and the global economic slowdown that highlighted nearly all of 2003,” Murad told media representatives after the meeting. The AGM was attended by 80.49 per cent of the total shareholders of the bank.
The chairman assured the shareholders that bank would continue to consolidate its position in all major areas during 2004 with a target to achieve a 20 per cent return on equity (RoE) for its shareholders by next year.
One of the main financial highlights for this year was Moody’s rating of BBK which was raised two notches to Baa 1, reflecting the strength of the Bahrain economy as well as the bank’s sustained performance. Murad said that the institution would continue to concentrate on corporate, consumer and commercial activities to tap existing opportunities.
Referring to the bank’s financial statement he said that the financial results for the year represented the consolidation of the head office and branches of the bank, domestic and overseas.
“BBK remained active in trade financing and supports the growth and expansion of other industrial and commercial enterprises as well as infrastructure and tourism projects. In addition, BBK plays a key role in the development of e-government and e-commerce in the Kingdom,” Murad said.
Bank of Bahrain and Kuwait (BBK) is considering to form a subsidiary dealing with insurance sectors widening BBK’s customer-service base, the chairman of the bank’s board of directors, Murad Ali Murad, said.
He said that the institution was also considering to restructure shareholding to offer more opportunities to investors, particularly in Kuwait.
BBK has three subsidiaries namely BBK Financial Services, Credimax and Al Khaleej Islamic Investment Bank. “Credimax has achieved excellence in its specialised segment of card-related services,” Murad said, adding that we would continue to concentrate on the innovative technology to cope with the future challenges in this regard.
“We’re currently working to open up BBK shares for more shareholders as shares will also be listed on the Kuwait Stock Exchange (KSE) during this year,” he said. “The insurance sector has a huge growth potential in the Kingdom, and the institution is working on different options including establishing a fourth subsidiary in order for the insurance sector to tap existing opportunities in the market.
Murad, who conducted the shareholders’ annual general meeting, said the institution would continue to play an active role in project financing. “We’re keen to participate in major developmental projects in the Kingdom.
“Aluminium Bahrain, Bahrain Petroleum Company and Hidd power plant are the principal projects where good investment opportunities can be available,” the chairman said. “In 2003, a number of infrastructure and industrial projects were initiated to stimulate various sectors of the economy. These initiatives had a positive impact on the economy. BBK, which plays a major role in providing financing for key industrial and infrastructure projects, spearheaded the Kingdom’s continued industrial diversification,” the chairman in his annual statement said.
The meeting was also attended by chief executive officer and general manager Dr Farid Al Mulla, members of the board and shareholders who ratified the financial statement and appropriations for 2003.
The meeting also approved a cash a dividend of BD16.5 million to shareholders. BBK’s total assets crossed the BD1.3 billion mark with a persistent upward trend during the last four years.
The BD 23.3 million net profit for the second consecutive year was not only the highest in BBK’s history but also the highest among all commercial banks in the country. The net profit for last year increased by 16.5 per cent to reach BD 23.3 million while total assets as at December 31, 2003, stood at BD 1.3 billion, an increase of 8.1 per cent over that of the previous year.
BBK’s consolidated profit represents an increase in return on shareholder equity from 16.1 per cent in 2002 to 17.8 per cent last year. “
“This is a significant achievement given the competitiveness of local markets and the global economic slowdown that highlighted nearly all of 2003,” Murad told media representatives after the meeting. The AGM was attended by 80.49 per cent of the total shareholders of the bank.
The chairman assured the shareholders that bank would continue to consolidate its position in all major areas during 2004 with a target to achieve a 20 per cent return on equity (RoE) for its shareholders by next year.
One of the main financial highlights for this year was Moody’s rating of BBK which was raised two notches to Baa 1, reflecting the strength of the Bahrain economy as well as the bank’s sustained performance. Murad said that the institution would continue to concentrate on corporate, consumer and commercial activities to tap existing opportunities.
Referring to the bank’s financial statement he said that the financial results for the year represented the consolidation of the head office and branches of the bank, domestic and overseas.
“BBK remained active in trade financing and supports the growth and expansion of other industrial and commercial enterprises as well as infrastructure and tourism projects. In addition, BBK plays a key role in the development of e-government and e-commerce in the Kingdom,” Murad said.
© Bahrain Tribune 2004
