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- Ebdaa Bank reports net profit of BD 306,000 for the fiscal year ended 31, December 2018
- Ebdaa Bank successfully progresses nearly 800 customers’ projects from micro to small
Manama, Bahrain : Ebdaa Bank for Microfinance, one of the Arabian Gulf Development Program (AGFUND) banks, has discussed the prospect of making Bahrain a center for microfinance financial transfers around the world.
This was discussed during a meeting held by the Board of Directors of Ebdaa Bank, headed by Ebdaa Bank Bahrain Chairwoman, Mona Yousif Almoayyed. The directors stated that a number of factors including Bahrain's developed financial and banking services sector, the development of regulatory legislation, adequate infrastructure and Bahrain's geographical location collectively contribute to Bahrain’s potential of being a global center for the microfinance industry and microfinance financial transfers.
Executive Director of AGFUND, Nasser Bakr Al Qahtani, stated that the program will conduct a comprehensive study on this subject and submit it to the concerned authorities in the Kingdom of Bahrain. “We are positive that Bahrain will seize this opportunity to strengthen its financial services sector and turn it into a center for the microfinance industry around the world,” said Mr. Al Qahtani.
On another note, the Board of Directors expressed their satisfaction with the financial results that the Bank has achieved for nearly five years, until last year. The Bank achieved an unprecedented net profit of BD 306,000 for the fiscal year ended 31 December 2018, an increase of 227% over 2017. The Board approved the Bank’s move to increase the volume of deployment and operations, and expand the number and value of disbursed loans.
The Board of Directors of Ebdaa Bank is keen on strengthening their coordination with the Central Bank of Bahrain (CBB) in various areas that are linked to the financial coverage of low-income people. The Board commend CBB’s understanding of the needs of microfinance industry.
During the meeting, the Board of Directors discussed the issue of the application of Value Added Tax (VAT). They stressed the need for a solution which prevents paying the tax twice: when utilizing the loan to purchase the project's needs and when paying loan fees.
In 2018, the bank successfully graduated 793 customers who moved their projects from micro to small, and obtained commercial records. The board directors called for a focus on graduating 10 clients and helping them to move from small to medium enterprises this year. The directors reviewed the best mechanisms for graduating the Bank customers who reached the maximum limit of loans to the BDB, based on a detailed report on the borrower's project, economic feasibility and growth, as well as its commitment to repayment of loans.
The Board discussed the Bank's internal performance reports, praising the inclusion of the required professional standards. They further reviewed the Bank's efforts to automate its internal processes and shift towards electronic services.
During the meeting, the Board of Directors stressed the importance of the Bank's progress in enhancing effective communication with customers and providing more channels for their services; either directly through the Bank's branches or through telephone and electronic channels. They highlighted the importance of continued efforts to expand the Bank, through the opening of additional branches in new locations, in order to better serve customers. Ebdaa Bank currently has branches in Sanabis, Hamad Town and Aali and plans to open two additional branches in Muharraq and Sitra, in addition to the opening of its Saar branch.
The Board of Directors expressed their support of the on-going initiatives of the Bank's Executive Management to develop Bahraini competencies, implement training plans covering over 25 areas in the microfinance industry and various administrative works. The Board called for enhancing the exchange of experiences among Bank employees with their counterparts from banks and micro financing institutions in the rest of the region and the world.
The meeting concluded with the board of directors expressing their satisfaction with the Bahrainisation rate in the bank, considering that 50% of the bank's branch managers and all their representatives are Bahrainis. This comes with the framework of the executive management's efforts to equip the second row of banking leaders within the bank.
-Ends-
About Ebdaa Bank:
Ebdaa Bank was established in 2009 in the Kingdom of Bahrain with a capital of US $ 5 million. Bank’s major shareholders of entrepreneurs and institution receive 60 per cent of profit, while AGFUND receives the remaining profit. Ebdaa Bank continues to support Bahrain’s Economic Vision 2030 by helping low-incomers to engage in new and innovative economic projects.
For More Information contact:
PR& Marketing: Manama/ Main Branch 17381000 – Hamad Town Branch 17440551
www.ebdaabank.com - info@ebdaabank.com
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