Bahrain: KHCB reports decline in net profit

Khaleeji Commercial Bank (KHCB), a leading Islamic bank in the Kingdom of Bahrain, today announced that it has posted a net profit of BD 3 million for the second quarter of 2009 (BD 13.6 million during the same period 2008) to realize a net profit of BD 7.1 million for the first half of 2009 compared with BD 26.2 million realized for the same period of 2008.

The Bank’s business continued to expand with total assets growing by 8.5 % over December 2008, total financing assets increased by 13.8 %, and Unrestricted Investment Accounts increased by 17.4% over the same period. The Bank’s financial position remained strong with liquid asset ratio of 32.7 % and capital adequacy ratio of 34.0%.

Commenting on these results, Dr. Fuad Al-Omar, Chairman of KHCB, said: “Considering the difficult market conditions globally and in the region, KHCB's financial results for the first half of 2009 are good. While growing the business and the balance sheet, the Bank has adopted a conservative approach ensuring sufficient liquidity. Liquidity and capital position remains solid with ratios much in excess of regulatory requirements. While the markets remain uncertain we will continue to focus on expanding and diversifying or business and customer base."

KHCB's Chief Executive Officer and Board Member, Ebrahim Hussain Ebrahim, explained: "Despite difficult market conditions, income from commercial banking activities increased by 51 % over the same period in 2008, as financing assets reached BD 186 Million (a 34 % growth over same period 2008) and unrestricted investment accounts reached BD 191 Million (a 25 % growth over same period 2008). This reflects our customers’ continuing and increasing confidence in our banking products and services. With respect to investment banking, we successfully raised USD 247 million and closed the placement of investment in Global Logistix project in India. Furthermore, adopting a conservative approach we made provisions for impairment of BD 4 million (BD 1.6 million in first half of 2008).” ”We also expanded our customer contact points by opening our main branch in Bahrain Financial Harbor, launching VISA electron card and deploying new ATMs.”" Mr. Ebrahim added.