Bahrain Islamic Bank (BisB) said it has swung to a net profit of BD3.8 million ($10.1 million) during the first nine months of the year from a net loss of BD20.8 million during the same period last year.

A statement by the bank said provisions totalling BD9.1 million have been deducted for the period as against BD24.9 million during the same period last year.

Net profit for the third quarter this year amounted to BD1.4 million versus a net loss of BD4.9 million during the same quarter last year.

This is after setting aside provisioning amounting to BD3.4 million for the quarter under review as against BD5.4 million during the corresponding previous period.

The bank made an operating profit of BD12.9 million during the first nine months of the year against BD3.9 million during the same period last year.

Operating profit for the third quarter was BD4.8 million versus BD436,000 for the same period last year.

Chairman Abdul Razaq Al Qassim said the results reflect a prudent policy and all earnings represent principal activities involving the bank's assets.

The National Bank of Bahrain and Social Insurance Organisation Asset Management Company recently acquired controlling stake of 51.6 per cent in Bahrain Islamic Bank (BisB) from The Investment Dar of Kuwait.

This was followed by the formation of a new board of directors in July and reconstitution of the board's sub-committees.

More than 76 per cent of the bank's equity is now owned by Bahraini and Gulf government institutions.

"The changes will significantly contribute to supporting the bank's operations and activities," said Al Qassim.

He also announced the board was in the process of drawing up a new strategy which aims at raising the bank's market share, diversifying the portfolio and increasing earnings.

BisB chief executive Mohamed Ebrahim said the results demonstrate the bank is on the right track in terms of almost total dependence on earnings and fees for finance activities, which constitute more than 95 per cent of gross operational earnings.

"The revenues do not include any unrealised valuations and profits and cash liquidity for the nine-month period stood at 24 per cent," he added.

On upcoming developments, the chief executive said the bank was set for the opening of its second financial mall on Budaiya Road in December.-TradeArabia News Service