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BAHRAIN Islamic Bank (BisB) announced the highest ever financial results in 2007, achieving BD25 million net profit, an increase of 92 per cent compared to BD13 million in 2006.
Commenting on the record results, BisB chairman Khalid Abdulla Al Bassam said: "This excellent performance is due to the significant growth in the bank's finance and investment transactions, which contributed to the large increase in the gross income from all the bank's activities, hence a substantial increase in the return on capital and shareholders equity."
He added: "In view of these excellent results, the board of directors recommended to the shareholders general meeting the payment of dividends at the rate of 23 per cent of the paid up capital as on December 31, 2007. The 2007 distributable profits are represented by cash dividends of 13 per cent in addition to the distribution of 10 per cent bonus shares." This is the fourth successive year, the bank distributes dividends and bonus shares to its shareholders.
"Our excellent financial results are a clear message to our shareholders, investors and customers confirming our total commitment to give them the best value for money and to interact with them by being always among the first to publish the financial results.
"I would like to take this opportunity to praise the efforts, hard work and loyalty of our management team and staff in all departments which had a significant impact towards achieving such results. We are looking forward to continuing these achievements in 2008," Mr Al Bassam concluded.
BisB acting CEO Mohammed Ebrahim Mohammed said: "The bank's operating income in 2007 increased to BD52.2 million, an increase of 64 per cent compared to BD31.9 million in 2006. The returns on investment was BD15.6 million an increase of 23 per cent compared to BD12.7 million in the previous year.
"The bank's total assets increased during 2007 to BD659 million an increase of 51 per cent over the 2006 figures. Such increase was mainly due to focusing on Murabaha transactions and the continuous growth in the bank's investments in Sukuks, Musharaka, Ijara ended with ownership transactions and other investment portfolio.
"The profitability per share rose from 47 fils at the end of 2006 to 66 fils at the end of last year, an increase of 40 per cent. This high level of profitability continued to the increase in the return on equity to 24.8 per cent, which represents a 40 per cent increase over the previous year's figures. This is one of the highest profit rates of the commercial banks operating in Bahrain," Mr Ebrahim added.
"The return on equity was almost 25 per cent; this surely is excellent by any standard and we are proud of this achievement. Banking is all about people and our team proved this year its commitment to achieve the highest possible returns to the shareholders and customers enabling the bank to get a bigger share of the local market that witnesses strong and continuous competition," he concluded.
The Bahrain Stock Exchange statements show that the BisB's share price witnessed a rise for the fifth consecutive year. It is currently traded in addition to the bonus shares (12.5 per cent) distributed in 2006 at a price of 514 fils. With this level, the market share price falls against the share's profitability by eight times.
