According to a release by the company, the growth in net profit is attributed to constant growth in core businesses and the housing loans portfolio.
The bank also succeeded in diversifying its revenue sources through commercial mortgages and effective asset liability management contributing to greater income streams through associated fees and commissions.
“With the housing sector as its top priority, the bank constantly seeks ways of easing the burden on the government budget by way of housing and financing solutions. The bank continues to be the largest mortgage lender in the Kingdom,” said Basim bin Yacoub Alhamer, Chairman of Eskan Bank.
The bank’s loan portfolio grew to BD284.8 million as on March 31, 2011 from BD266.9million as on March 31, 2010.
Bank’s asset base grew from BD442.3million to BD453.2million in Q1 2011. The bank’s liquidity continues to be comfortable with liquid assets (cash, balances with CBB, placements with financial institutions) representing 21pc of total assets.
A strong technology platform has also enabled the bank to improve its productivity. With a strong capital base – capital adequacy ratio of 93per cent as on March 31, 2011, the bank plans to further strengthen its paid-up capital by recapitalising its retained earnings