BAHRAIN Islamic Bank (BIB), which opened its doors for business in 1979 with an initial capital of BD5.7 million, has emerged as one of the leading Islamic financial institutions with its capital reaching BD23 million or an increase of 400 per cent since launch of the bank.
BIB, the pioneer Islamic financial institution in the Kingdom, is celebrating the Silver Jubilee with expected participation of over 1,000 guests from across the GCC. The bank will have a network of 12 branches across Bahrain by the end of the year, including a dedicated branch for women starting operation in few days.
The newly-appointed chief executive officer (CEO), Yousif Saleh Khalaf, told a Press Conference that bank was expecting a 50 per cent increase in net profits by the end of the year. "We have a robust financial year as the net profits are expected to reach BD3.7 million mark by end of the year against BD2.4 million at end-2003. The bank will also distribute about 10 per cent dividend to the share holders," Khalaf said, adding that the Chairman of the BIB Board, Mohammed Abdullah Al Zamil has unveiled a pro-active strategy for the next three years.
"We expect that the shareholders will approve the bank's three-year plan aimed at further consolidating the bank's position in Bahrain and opening avenues for the bank to participate across the GCC in various business activities including the merger and acquisitions (M&A). The increase in capital and increase in the volume of the dividend to the shareholders are among the few issues which have to be ratified by the shareholders prior to implementation," Khalaf said.
"The assets of the banks have risen to BD250 million, shareholders' equity BD50 million, customers' accounts and investment BD200 million and the bank currently enjoys the highest number of Bahrainisation with 98 per cent of the total staff. We are keen to induct more young blood and the bank will continue to spend on the training of the staff."
"The Capital Intelligence had assigned BBB-, infact credit rating improved from BB+ to BBB-. In addition, the bank's outlook has been also improved from stable to positive," Khalaf said.
"The bank's shareholding represents Bahrain, Kuwait, Saudi Arabia and the UAE. While the bank has businesses in Bangladesh, Sudan and Pakistan," he said.
"We are one of the most committed financial institutions focussing on the social aspects of the society as the BIB had donated over BD3 million supporting the charities and Zakat funds," he said.
"The members of the BIB board, led by its Chairman Mohammed Abdullah Al Zamil, will be received today by the Prime Minister, Shaikh Khalifa bin Salman Al Khalifa, and the Crown Prince and the Commander-in-Chief of the BDF, Shaikh Salman bin Hamad Al Khalifa on the eve of the bank's silver jubilee celebrations, "he said.
"The bank still have three founding members on the board i.e. Khalid Al Zayani, Abdulatif Janahi and Yousif Al Awadhi while the founding Chairman of the board, Shaikh Abdulrahman bin Mohammed bin Rashid Al Khalifa served for about 22 years."
Talking about the BIB's future strategy, Khalaf said the new innovative products and the latest delivery channels such as SMS and Internet banking would be rolled out shortly. He said that the bank would continue to offer innovative products from time to time. "We have just finalised the 15 years mortgage financing for Bahrainis and the bank was also considering of offer Islamically designed mortgage financing for expatriates as well," he said.
"We are currently updating the website of the bank and in process switching over to the information technology-oriented system. The human resources development and training are other priorities of the management," Khalaf
said.
The net profits had registered an increase of 100 per cent reaching BD 2.7m at the end of first half of the 2004 from BD1.3m as compared with same period a year earlier. The total revenues during the same period have been increased to BD5.7m from BD 4.2m, or an increase of 34 per cent.
The investments in Sukuks had reached BD47.8m mark at end of the 2003 compared to BD26.9m in 2003 or an increase of 78 per cent or an increase. The bank had posted net profit of BD2.5m in 2003 as compared with the results of BD2m in 2002, or an increase of 20 per cent.
© Bahrain Tribune 2004
