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Khaleeji Commercial Bank Reported a net profit attributable to the owners of the bank of 4.22 Million Dinars for the 1st half of 2016

Khaleeji Commercial Bank Reported a net profit attributable to the owners of the bank of 4.22 Million Dinars for the 1st half of 2016

Manama, Kingdom of Bahrain, 7th August 2016: Khaleeji Commercial Bank, one of Bahrain’s leading Islamic retail banks, continued to show strong performance in the first half of 2016 by the announcement of its net profit attributable to the owners of the bank amounting to BD 4.22 million as compared to BD 4.12 million in the same period last year, representing a growth of 2.4%. Further, the bank’s profit attributable to the owners for the 3 months ended June 2016 was BD 1.37 million, compared to the profit of BD 2.45 million for the 3 months ended June 2015 resulting in a decrease of 44.1%.

In addition, the total assets held by the bank has increased by 1.4% reaching to BD 663 million in comparison with the total assets of BD 654 million held at the end of December 2015. This was mainly boosted by the core banking and financing assets which rose by 13.8% to BD 441 million.

Moreover, the total net income recorded by the bank in the first half of 2016, amounted to BD 12 million compared to BD 10.5 million reported in the same period of the preceding year, signifying an increase of 14.2% while the total net income reported for the 3 months ended June 2016 & June 2015 were BD 5.98 million & BD 6.18 million respectively representing a decrease of 3.2%. 

Even with the economic challenges encountered in the region, the bank was able to maintain a strong capital adequacy ratio of 19.3% reassuring the commitment of the bank to an enhanced conservative portfolio for the protection of the stakeholder’s interests.

Commenting on the positive results, Dr. Ahmad Al Mutawa, Chairman of KHCB said, “ We are pleased with the strong performance of KHCB and its continuation in the growing the Return of Investments, despite the economical  instabilities the region and the world as whole continue to witness, massive decrease in oil prices, and the wavering money market.”

He added, “Despite the bank’s high-quality assets, the Board and the Executive management has conducted a comprehensive review of the bank’s assets during this period to ensure that the assets reflect the actual fair value, in order to face the future uncertain changes in the market. Based on this evaluation, it has been agreed to record an additional impairment allowance of BD 1.6 million for the 6 months as a prudent measure against the drop in value of the assets. This action reflects the conservative strategy that the bank has adopted for years.”

Dr. Al Mutawa concluded “These results showcase our well-integrated banking potential and our abilities in continuing the bank’s work during the turbulent financial market by taking the necessary initiatives to achieve the bank’s strategic goals through this period. The second quarter results were achieved through the addition of innovative banking products and the rapid growth of the institution. Thanks to firstly, Allah, and the magnificent efforts made by the team. We hope that the results in the coming periods will show bigger profits.”

Mr. Khalil Al Meer, KHCB’s Chief Executive Officer commented on the results of the second quarter and said, “The first half of 2016 witnessed many strategic initiatives which embodied our determination to attain our goals, one of which was the expansion of our branch network with the launch of KHCB’s 11th branch in the Kingdom. We look forward to enhance the communication with our valued customers and to further offer our loyal clients with innovative banking products, especially the electronic services”.

During this time, Mr. Al Meer added, “Our priorities continue to remain to invest in developing our services to strengthen our position as the leading Islamic retail bank in the Kingdom with respect to customer service. We hope to continue to provide our loyal customers with specialized services that are designed to meet the specific requirements.”

KHCB – Outstanding Performance

KHCB announced the achievement of excellent financial results during the first quarter of 2016 where the bank achieved bank achieved net profit attributable to the owners of the bank of BD 2.85 Million, with a growth of 70.7%, compared to the net profit of BD 1.67 Million for the same period in 2015. In line with the outstanding results, the bank was awarded the "fastest-growing banks in the Kingdom of Bahrain" award granted by ‘CPI Financial, Banker Middle East’, one of the leading foundations specialised in financial news and money analysis in the region.

Khaleeji Commercial Bank BSC (KHCB) is an Islamic bank licensed by the CBB, headquartered in the Kingdom of Bahrain, and operating under a Retail Islamic Banking license granted by the Central Bank of Bahrain (CBB). It is a Public Bahraini Shareholding Company listed in Bahrain Bourse. KHCB offers a comprehensive range of innovative banking and investment product and services to individuals, corporate entities, and financial institutions. These include commercial and corporate banking, wealth management, structured investment products and project financing facilities.