Profits plummet at Bahrain International Bank
The Bahrain International Bank (BIB) has reported a drop in net income for 2000, from $30.3 million in 1999 to $313,000. As a result, the bank’s board did not distribute dividends for 2000, and consequently increased its general provisions by 75 percent to $7 million.
Compared to 1999, operating expenses rose 10 percent to $14.9 million and operating revenues fell to $22.5 million from $48.5 million. This, said a bank statement, reflected the continued postponement of several investment realizations due to the weakened state of the equity markets.
But the bank noted that its portfolio of assets remains healthy and robust. During the fourth quarter of the year, BIB raised a $92.5 million in term loans that were oversubscribed by leading regional and international banks.
Addressing the new year, the bank’s CEO, Robin McIlvenny said that the bank intends to reduce its dependence on the realization of longer-term non-liquid investments. This will be done by achieving greater diversity in the private equity portfolio.
Early signals in 2001 point to a quick return to traditional levels of profitability, McIlvenny stated. – (Albawaba-MEBG)
© 2001 Mena Report (www.menareport.com)