Manama, Bahrain February 26, 2012: Bahrain Middle East Bank (B.S.C) announced its results for the year ended 31 December, 2011.  These are characterized by the successful transformation to its new business model and its significant contribution to the Bank's overall performance.  The Bank was able to reap positive results in the most challenging and unfavorable regional and global markets environment.

Highlights of performance included:

  • Income from new business initiatives grew by nearly 'two fold' to reach US$ 5.7 million as compared to US$ 3.0 million in 2010.

  • Operating costs continued to show consistent efficiency improvements amounting to US$ 6.3 million in 2011 - as compared to US$ 7.6 million in 2010 representing a further 17% decrease. Relative to the pre-restructuring operating expenses of US$ 11 million in 2008, this marks 43% overall reduction - taking total post-restructuring cumulative expense savings to approximately US$ 10.0 million

  • Net profits for the period amounted to US$ 3.7 million (2010: US$ 6.4 million)

  • Capital adequacy continued to remain amongst the highest in the Kingdom at 25.1% (2010: 21.1%)

  • Leverage measured by total financial obligations to equity reduced to 1.0 x from 1. 6 x at end-2010 and 3.4 x at end-2009.

  • Distribution of private equity realizations to customers amounted to US$ 7.1 million during the period - broadly maintained at previous year levels despite adverse market conditions (2010:  US$ 7.4 million)

Commenting on the results Mr. Wilson Benjamin - Chairman of the Bank said that:

"We are very pleased with the results of the Bank achieved amidst heightened uncertainty that continued to characterize global financial markets in 2011. The Bank's capacity to consistently deliver despite challenges remains testament to the success of its new initiatives and depth and diversity of its new business model.

We applaud the Management for their relentless efforts and successes more so amidst these challenging circumstances. The Bank gradually managed to transforme itself as a Niche Financial Services Provider capable of building long-term sustainable value for its Shareholders"

Mr. Akbar Habib, Chief Executive Officer said: 

"Despite the Bank's limited resources, it gives us a good level of satisfaction that the new business initiatives have been successfully implemented, albeit on a small scale during 2011, yet it not only delivered a positive key contribution on the Bank's overall performance but has a profound impact on the Bank's business model. This demonstrates that the model is not only viable but also resilient in view of its successful implementation during the period of unfavorable regional and international market conditions.

These positive and encouraging developments provide us with a great degree of confidence and optimism that its business model is sound and fundamentally well positioned to take it to new heights in 2012 and beyond."

© Press Release 2012