Bahrain based BMI Bank (BMI) has announced operating profits of BD2.1 million ($5.57 million) for the first six months of 2009, reflecting an increase of 20 per cent over the same period of 2008.

The results are subject to the approval of board of directors of the bank in a meeting scheduled for August 2009.

Commenting on the Bank’s half year performance, Andrew Bainbridge, chief executive officer of BMI said: “Our operating profit pre-provisions has grown by over 20 per cent to BD2.1 million ($5.57 million) as compared to the second half of 2008 and reflects strong growth and performance for our various operations in Bahrain, Qatar and the Seychelles.

“We have reduced our cross border exposure since the first quarter of 2009 whilst growing within Bahrain. Additionally, our offshore business in the Seychelles (BMI Offshore Bank) and our international operations in Qatar have turned profitable during this quarter.

“As a consequence of these actions, our capital adequacy has strengthened further to over 22 per cent, which continues to make BMI one of the best capitalised banks in Bahrain.

“However, as a result of our exposure to two major family businesses in the GCC which we announced in June and whose defaults have led to uncertainties within the region, we have very prudently raised provisions of BD7.8 million resulting in a loss after provisions of BD6.1 million for the second quarter of 2009 and BD5.6 million for the first half of the year.”

Bainbridge explained that during the first half of 2009, the bank has continued to consistently grow its retail customer base through its extended local branch network as well as its bank@work proposition.

“We recently completed the migration of our ATM cards to the new chip-enabled Visa Debit cards, which provides our customers with added security when they use their card locally as well as when they travel overseas,” he said.

“Our 5 credit card products and Diners Club Card are a clear demonstration of our commitment to improving our product offering to customers and ensuring we provide them with the best product to suit their needs.

“Our award winning e-banking service makes it easy for our customers to use our services. I am also delighted with the good progress made in the first half by our SME business, supporting the growth of this sector in Bahrain.”

“Our strong liquidity and top class capital adequacy provide us with added security and ensure we are well positioned to face the future and provide first class support and service to our customers,” Bainbridge added.

“We are committed to delivering innovative products and services through our retail and commercial banking franchise and will continue to invest in them to better serve the population of the kingdom.”

BMI will release the final results along with a complete set of financial statements for the period ended 30 June after the necessary approval by the Board of Directors later in August. – TradeArabia News Service