Bahrain-based TAIB Bank reported a net loss of $8.4million for the nine months has been reported compared to a $28 million loss for the comparative period in 2010. The bank expects a return to profitability in 2012.
Gross income was up 39% for the period to $9.2 million and has been driven by new treasury and brokerage business initiatives and reflects a significant improvement on 2010 net incomes of $6.6 million.
“Post the appointment of a new management team at the end of 2010 and the introduction of an aggressive turnaround strategy, TAIB Bank is pleased to report a significant improvement in its core business,” the bank in a statement said.
Provisions for the period were also dramatically reduced from $18m in 2010, to a write back of $ 0.6m in 2011 due to overall better credit management.
In terms of loss trends, in Q1 2011, TAIB Bank made losses of $ 3.1 million, in Q2 2011 these losses were reduced to $2.6m and have remained at $2.7m in Q3. Included in these losses are provisions for staff restructuring costs which are a part of the Bank’s ongoing repositioning strategy.
TAIB’s Capital adequacy ratio improved slightly from 12.05% in December 2010 to 12.30% as at 30 September 2011 and has been driven primarily by the successful exits of non -core real estate investments.
“The restructuring of our underlying businesses has generated a momentum which is being reflected, albeit tentatively, in this set of results. Our business, undoubtedly however has been transformed, and with the ongoing commitment of our staff, whom I must thank, we are well positioned as a new, stronger and more competitive regional bank for a return to profitability in the not too distant future and subsequent growth across the region,” Sohail Sultan, TAIB’s CEO, said.