Bahrain Islamic Bank profits soar by 92%

by Richard Kilner

Story link: Bahrain Islamic Bank profits soar by 92%

Last year saw the Bahrain Islamic Bank achieve a 92% increase in its profits.

In 2006 it recorded a BD13m profit, which soared to BD25m in 2007.

The bank’s success comes after a change of policy, involving asset development and bolstering both the returns and the value paid to shareholders and investors.

Khalid Abdulla Al Bassam, the bank’s chairman, attributed its record-breaking profits to the substantial growth of the bank’s finance and investment transactions which helped gross income rise from all activity carried out by the bank.

Consequently, this led to a higher return being paid out to shareholder and investors.

Effective from 31 December last year, the bank’s board has recommended to its shareholders that the dividend payment on capital should be made at the rate of 23%.

This will be the fourth consecutive year that dividends and bonus shares will be distributed amongst shareholders.

Khalid Abdulla Al Bassam also thanked the staff and management of every department in the bank for their effort, hard work and loyalty which helped the firm achieve its best ever profit margin.

Mohammed Ebrahim Mohammed, the acting chief executive, has confirmed that the bank’s operating income has also risen to its highest ever level, up by 64% last year to BD52.2m, compared with BD31.9m in 2006.