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Home |MutliMedia | News | KHALEEJI COMMERCIAL BANK REPORTED A NET PROFIT ATTRIBUTABLE TO THE OWNERS OF THE BANK OF 5.3 MILLION DINARS FOR THE YEAR 2016

KHALEEJI COMMERCIAL BANK REPORTED A NET PROFIT ATTRIBUTABLE TO THE OWNERS OF THE BANK OF 5.3 MILLION DINARS FOR THE YEAR 2016


 

Manama, 9th February, 2017: Khaleeji Commercial Bank (KHCB), one of the leading Islamic Banks in Bahrain, announced its financial results for the financial year that ended in 31 December 2016, reported a net profit attributable to the owners of the bank of BD 5.3 million, compared with BD 7 million achieved at the end of 2015, representing a reduction of 24.3%. The Bank achieved a net profit attributable to the owners of the bank of BD 733 thousand during the last quarter of the year 2016, compared to BD 978 thousand in the last quarter of the previous year resulting in a decrease of 25%. While the overall growth in the bank's assets amounted to 17% compared to 2015. Returns on equity reached 4.7%. With these results, the Bank sustained its profitability and strengthened its financial position with a liquid assets ratio of 27% from the total assets and capital adequacy ratio of 18.36%. The reduction in the net profits comes after impairment allowance of 8.9 million Bahraini Dinars for the period ended in December 31, 2016, in order to empower the bank’s financial position & support its growth in 2017.

On the other hand, the net operational profit increased by 35.6% to reach BD 14.23 million compared to BD 10.49 million achieved in 2015. The bank also reported an increase in the total income before return to investment account holders by 15.9% to reach BD 35.9 million in 2016 after it was BD 30.9 million in 2015 & the total income increased by 21% to reach BD 25.79 million against BD 21.3 million achieved in 2015.

On the occasion of achieving these positive results, Dr. Ahmad Al Mutawa, Chairman of KHCB said: “2016 has seen many achievements by Khaleeji Commercial Bank, reflected in the positive indicators of the bank’s performance this year. All this was possible thanks to the bank’s management & staff for their headwork & dedication to implementing our strategic plan & periodical objectives successfully.”

Dr. Al-Mutawa added: "In response to the local and international market fluctuations that effect many financial institutions, the Board of Directors and the Executive Management have agreed to follow a conservative strategy this year. As such, a sum of BD 8.9 million has been allocated as a precautionary & dividends will not be distributed in order to empower the bank’s financial position in local & GCC markets & achieve a successful listing at Dubai Financial Market”

Commenting on the results, Chief Executive Officer of the Bank, Mr. Khalil Ismail Al Meer said: "The bank has managed to achieve several key objectives during the second year of its new strategic plan, including the opening of the bank’s 11th branch and the launch of an innovative range of products and services for individuals and companies, which received overwhelming response from our clients. The main performance indicators reflect the full commitment of the bank’s management and staff to implement our strategic plan within our core business model, as the main performance figures indicate a growth of 17% percent of the total assets from BD 654 million in 2015 to BD 765 million in 2016.

Al Meer conclude "Financing assets grew by 16.2% to reach BD 451 million compared with BD 388 million recorded in 2015. Similarly the increase in the percentage of client deposits reached 20%, rising from BD 485 million in 2015 to BD 581 million in the year 2016. The results also show an increase in the customer base, which reflects their satisfaction with the products and services that we provide to them, giving us the motivation to provide more. We will enter the New Year with more optimism & enthusiasm."