MANAMA: Ebdaa Bank for Microfinance - Bahrain has posted an increase of more than 227 per cent in net profit at BD306,000 for 2018 compared with BD94,000 in 2017.
This is due to the increase in the volume of operations apart from the number and value of disbursed loans.
Operating as a social business, Ebdaa Bank confirmed that profits will be re-injected into the bank’s capital to increase the number and value of low-income loans, helping more Bahrainis to start and/or improve their micro and small businesses.
In a statement on the performance of 2018, Ebdaa Bank reported its assets increased by more than 24pc from around BD2.45m in 2017 to over BD3.05m at the end of 2018.
The net loan portfolio increased from BD1.6m in 2017 to approximately BD2.1m in 2018, an increase of 31pc.
While operational income increased by 40pc in 2018, the operating expenses only increased by 10.7pc in 2018, compared with 2017.
The bank recovered nearly BD64,000 from the provision for debt defaults, as a result of increased efforts in the collection of outstanding loans and arrears from previous years.
Chairwoman Mona Almoayyed expressed her satisfaction with the continued development of the bank to serve low-income Bahraini clients.
“Enhancing the bank’s ability to lend is very important, at this time, as it contributes to national efforts to encourage retirees of the voluntary retirement programme to launch their own businesses,” said Ms Almoayyed.
“It further encourages micro, small and medium enterprises to generate more jobs in response to the requirements of the National Employment Programme,” she added.
The CBB’s support of the microfinance industry and its decision to reduce the minimum capital of microfinance banks from BD5m to BD2m, thereby expanding the microfinance base, from BD5000 to BD7000, also came in for praise from her.
Tamkeen has also contributed to the bank’s success by supporting technical development, training and payment support.
Ebdaa Bank chief executive Dr Khalid Al Gazawi said the results achieved over the past four years are mainly due to the implementation of AGFUND methodologies and standards in the field of microfinance.
The bank was able to disburse over 2,600 loans to its new and repeat customers, amounting to over BD2.6m in 2018.
“The plan for the next five years focuses on serving 10,000 borrowers including existing and new customers with loans worth over BD10m,” he said.
“The plan also includes the opening of branches in Muharraq, Saar and Sitra.”
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