Bahrain International Bank (BIB) recently announced that its net income reached $2.28 million in the first nine months of 2001. This compared favorably with a net loss of $4.26 million for the corresponding period last year.
"The fourth quarter of 2001 will be particularly challenging for all regional investment banks. We are faced with a severely contracting global economy and an operating environment in which it is virtually impossible to realize sensible value from direct investments”, stated Chief Executive Officer of BIB Robin McIlvenny.
BIB’s operating income reached $17.3 million in the same period, up from $6.7 million in 2000, driven by higher net interest income, investments and real estate transactions taken earlier in the year. Paired with this promising net income is a $4.8 million general provision covering the value impairment of various investment securities, principally in the aftermath of the September 11 attacks on the United States.
BIB’s total investment Fair Market Value portfolio experienced only a marginal shift in value at quarter end. The bank expects another good earning contribution from its United Kingdom real estate subsidiary during the fourth quarter.
The focus for BIB during the remainder of the year will be to concentrate on the management of investment portfolios, according to a bank press release. The Bank anticipates that many company investors will report weaker results during the fourth quarter of 2001, which will in turn have an effect its provisioning policy. Original budget estimates will be exceeded, having an impact on the net result.
Established in 1982, BIB is a Gulf-based international investment bank providing investment and corporate financial services to its private and institutional clients in the Gulf and overseas. BIB has offices in Bahrain, the United States, London and Dublin. BIB holds a BBB investment grade by international rating agency Fitch-IBCA. — (menareport.com)
© 2001 Mena Report (www.menareport.com)
