The bank reported a net operating income of BD2 million before accounting for provisions.
“The bank continues to maintain strong liquidity, with 20.9% of the bank’s assets being liquid, and adequate capital (the Bank has a regulatory capital adequacy ratio of 31.8%), both comfortably in excess of regulatory requirements. As a result of conservative liquidity and balance sheet management, the total assets of the Bank declined by 11.5% to BD419.2 million during 2010. However, the Bank managed to increase its financing portfolio by 2.8% to BD211.1 million and revenue from commercial and retail banking activities by 7.1%, confirming the success of the Bank’s strategy of expanding its commercial banking business,” the bank in a statement said.
“Like other financial institutions, the current market environment has had an adverse impact on the Bank, both directly and indirectly. However, we are pleased that through a combination of prudent and conservative management, the Bank was able to navigate this difficult period successfully,” said Dr. Fuad Al Omar, Chairman of KHCB.
“The key challenge for us in the medium term is to build the scale necessary for the Bank to become a leading player in the local and regional market. We will continue to aggressively grow our commercial and retail banking business while exploring other options including viable acquisitions of other entities and asset portfolios,” Dr Al Omar added.
“In line with our plans to expand our retail banking business, we launched several new products to meet clients’ needs. The Al Waffer savings account continued to expand and attract new customers and helped the Bank in diversifying its customer base and sources of funds. In 2011, we will open four new branches, in Sanad, Muaharraq, Budaiyaa and Isa town and will also continue to recruit experienced professionals for our retail and commercial banking business. Our investment team is actively working towards potential exits in 2011,” said Ebrahim H Ebrahim CEO and board member.