BMI Bank’s net profit up 88% to $1.4m for H1

Jamal-Ali-Al-HazeemBahrain’s one of the leading retail and commercial banking institutions, BMI Bank reported a net profit of $1.4 million (BD 0.54 million) for the first half of the year ended 30th June 2013, an increase of 88% as compared to a net profit of $0.7 million (BD 0.29 million) recorded over the corresponding period in 2012, mainly due to improved recoveries against impaired loans along with a one-off exceptional income. The net profit for the three months ended 30th June 2013 was $0.5 million (BD 0.20 million) compared to $0.4 million (BD 0.14 million) for the same period in 2012.

The total income for the half year was $28.6 million (BD 10.78 million) as compared to $8.3 million (BD 10.68 million) reported during the corresponding period in 2012, primarily driven by a 8% increase in net interest income which grew from $20 million (BD 7.7 million) recorded during the first half of 2012 to $22.1 million (BD 8.33 million) in 2013. Total assets as well as total loans and advances at the end of the first half stood at $2 billion (BD 0.77 billion) and $1.3 billion (BD 0.48 billion), respectively. Customer deposits grew at an annualized growth rate of 9.2% from $1.4 billion (BD 0.53 billion) recorded at the end of 2012 to $1.5 billion (BD 0.56 billion) as at 30th June 2013.

“Our net profit of $1.4 million (BD 0.54 million), achieved against the backdrop of a challenging environment, yet again demonstrates the effectiveness of our strategy which drives the business lines and service channels at our Bank,” Jamal Al-Hazeem, Chief Executive Officer of BMI Bank said.

“This performance, which represents our 8th quarter of straight profitability, together with our continued emphasis on rolling out customer-centric innovative products and services helps in cementing our position as a key retail Bank within the country,” he added.

Following on from the positive momentum in our first quarter, we rolled out several new initiatives including Prestige our premier service proposition that caters to the affluent individual as well as our second co-branded credit card product Ayadi Plus in partnership with Diners Club. The Ayadi Plus card offers customers who pay for purchases with the card, an opportunity to win cash prizes on our flagship retail product the Ayadi Savings Scheme including the grand Ayadi prize of a Diyar Homes Villa. We also rolled out two new offsite ATMs; one at Enma Mall in East Riffa and one at the BAPCO fuel station besides Muharraq club strengthening our network of ATMs to a total of 30 across Bahrain along with our existing 10 retail branches.

Additionally, during the first half of 2013 we witnessed a growth of 23.5% in our retail banking customer deposits as compared to the previous year and a 25% increase in Bancassurance annual premiums as compared to the second half of 2012 demonstrating an uptake in customers’ acceptance of our rates and services.

“At BMI Bank, we continue to maintain an excellent Capital Adequacy Ratio with strong liquidity and a portfolio of unique and innovative products and services. We will continue to focus on growing our business along with customer numbers during the year in line with our strategy of consolidating our position as a solid retail bank in Bahrain.”

The bank had earlier posted a net profit of net profit of $0.9 million (BD 0.34 million) for the first quarter of 2013.

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