MANAMA: Khaleeji Commercial Bank (KHCB), a leading Islamic bank in Bahrain, has reported a net profit of BD2 million for the financial year ended December 2017 as against BD5.3m achieved in 2016.
A statement said this is after making a provision of BD7.5m for 2017 in order to strengthen the bank’s financial position and support its growth in 2018.
KHCB said it has maintained profitability for the shareholders despite the ongoing exceptional economic circumstances in the region due to unstable oil prices compounded by the unfavourable economic climate in the region.
For the last quarter of 2017, the bank recorded a net loss of BD2.2m as against BD734,000 net profit in the last quarter of the previous year.
On the other hand, assets have recorded a growth of 2.6 per cent to BD785m in 2017, compared to BD765m in 2016.
In the same vein, the liquid assets and capital adequacy remained at a healthy level of 22.2pc and 17pc respectively.
As a result, the Sukuk portfolio, which is considered a safe investment with high financial returns witnessed a remarkable increase of 52.9pc to BD113m in 2017 compared to BD74m in 2016.
Commenting on the results, KHCB chairman Dr Ahmed Al Mutawa said: “We are satisfied with the financial performance as we have been able to maintain profitability for the fourth year in a row, despite the challenging environment of the economy in general, which resulted from the sharp decline in oil prices and turmoil in financial markets.
“The year 2017 has been another year of success and we have been able to achieve remarkable accomplishments in various fields, most notably listing on Dubai Financial Market (DFM), which will enhance the status of the Bank at local and regional levels.”
He said, KHCB will continue to pursue its expansion policy at all levels through the implementation of a set of measures and development plans to maximise its market position, increase its share and develop its competitiveness.
“During the past year, KHCB has invested its local and regional position, successfully developing its business and enhancing its activities by applying a business model based on market research, investment opportunities and offering products and services tailored to meet the aspirations of its clients. This has enabled the bank to achieve good results in terms of business development and financial performance.”
“Today, KHCB is progressing steadily to strengthen its leadership position among Islamic banks in Bahrain. This is confirmed by the significant increase in the number of customers in 2017.
“This has led us to adopt significant expansionary initiatives during 2018 and the following years, including plans to enhance the financing portfolio through innovative solutions for individuals and corporates.
“The upward trend of global and domestic earnings ratios has prompted us to put forward such ideas for the benefit of our shareholders and clients.”
Chief risk officer and acting chief executive Tawfeeq Mohamed Bastaki said, “The year 2017 witnessed the implementation of several important strategic initiatives that reflected our determination to continue achieving our targets.”