“The positive investment climate and investors’ confidence serve as vital pillar to move the businesses in the right direction including the banks,” Dr. Fuad Al Omar, Chairman of the Board of Directors of Khaleeji Commercial Bank (KHCB) told the 24X7 News.
Dr Fuad Al Omar who presided over the annual general meeting of the KHCB said that bank’s results were not according to the expectations of the board.
“KHCB could have performed better and obviously the 2012 results were not reflective of the projections of the bank. I would blame the lack lustre investment climate in 2012 however things are moving in the right direction and hope that 2013 will be much better year,” Dr Al Omar, added.
The AGM was attended by 77% shareholding of the bank approved the financials for 2012 and the management informed the shareholders that the bank would continue to expand its retail and commercial banking business.
The AGM was also attended by members of the board of directors and Shari’a board; auditors and regulators. During the Meeting, minutes of the previous AGM and audited financial statements for the year ended 31 December 2012 were reviewed and approved.
“While the regional economic and business environment continues to remain difficult, the Bank made a net profit of BD 751000 for the year in comparison to BD 518000 achieved in 2011. The Bank continued to execute its articulated business model which focuses on expanding its retail and commercial banking business. I am pleased to note that we have achieved considerable progress in accomplishing key milestones in this regard. In 2012 the consumer finance portfolio grew by 108.9% and corporate banking portfolio by 19.2% for an overall commercial Banking growth of 25.3%. Total number of branches increased to seven with the opening of two more branches. The Bank continued to recruit Bahrainis for its expanding business,” Dr. Al Omar, said.
Commenting on the financials of the Bank, Dr. Fuad said that the Bank has focused on expanding and diversifying its business while maintaining conservative liquidity and capital positions. “Capital adequacy ratio of 28.4%b against the regulatory requirement of 12% and liquid asset ratio of 19.2% indicate strong financial position with sufficient capacity for growth in future. The Bank continues to improve its profitability with increase in revenue from core operations and control of costs”.
Responding to a question on future plans, Dr. Fuad said that the bank would continue to aggressively grow its retail and commercial banking business organically while exploring other options.
“We are committed to expanding the network of branches and distribution channels to reach a wider and larger number of customers. At the same time, we will also consider other options including acquisition of other entities or asset portfolios as well as alliances with other financial institutions,” he added.
During the AGM, the participants extended appreciation and thanks to the Bank’s Board of Directors, senior management and employees for their dedication and hard work.