BMI Bank announces loss for the nine months ended 30 September 2010
Bahraini retail and commercial banking institution, BMI Bank, today announced its preliminary financial results for the nine months ended 30 September 2010. The preliminary results reflect a loss after provisions of BD 10.6 million for the quarter (as compared to a profit of BD 939 thousand during the same period in 2009) and a net loss of BD 18.5 million for the nine month period ended September 2010 (as compared to a loss of BD 4.6 million during the corresponding period in 2009). The results are subject to a review by the statutory auditors of the Bank as well as the approval of the Board of Directors of the Bank in a meeting scheduled for early November 2010.
Commenting on the Bank's nine month performance, Sheikh AbdulMalik bin Abdullah Al Khalili, Chairman of BMI Bank said:
"Although we haven't seen a significant deterioration in the Bank's wholesale book during the third quarter of this year, we have retained our conservative and prudent approach and have increased provisions on exposures which have not performed as expected. The preliminary results for the third quarter of 2010 reflect these non-cash charges resulting in a net loss of BD 18.5 million for the nine month period ended September 2010.
At BMI Bank, we still maintain an excellent Capital Adequacy ratio at over 20% with strong liquidity as demonstrated from our repayment of the three-year US$ 120 million syndicated term loan on the scheduled due date in July 2010 without the need for refinancing or roll over. Our operations in Bahrain, Qatar and Seychelles as well as at our associate in Kenya have all seen good growth during the year with a significant rise in customer numbers. We have also revised key products within our portfolio as part of our commitment to consistently review and modify our offering to better align it to our customers evolving needs. We will continue to seek growth organically whilst investing in and growing our franchises to maintain strong momentum built during the year."
Jamal Al-Hazeem, the Chief Executive Officer of BMI Bank said:
"Although our headline figures are disappointing, I am satisfied with the prudent levels of provisioning taken which helps us continue to focus on our strategy of developing a stronger retail and commercial banking business that will deliver on our commitment to provide customers with unique and innovative financial products and services.
We will shortly be announcing the launch of a new branch in Hamala as well as one more offsite ATM. This will strengthen our network making it convenient for our customers to bank with us. Additionally, with the recent launch of our upgraded banking systems to a state-of-the-art one, we are now able to provide our customers with simpler and faster banking solutions with streamlined processes."
BMI will release the final results along with a complete set of financial statements for the period ended 30 September 2010 after the necessary review by the statutory auditors and the approval of the Board of Directors of the Bank in early November 2010.
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