Bahrain-based Khaleeji Commercial Bank (KHCB) posted a net profit of BD1.02 million ($2.7 million) for the first half of the year compared with BD7.12 million during the same period last year.

The bank's commercial banking business continued to expand with income from commercial banking activities growing by 13.39 per cent.

Its financial position remained strong with liquid asset ratio of 20.71 per cent and capital adequacy ratio of 31.04 per cent.

During the second quarter of the year the bank posted a net profit of BD510,000.

'Given the difficult market conditions, KHCB has focused on diversifying and expanding its business while maintaining a conservative liquidity and capital position,' said chairman Dr Fuad Al Omar.

'The liquidity and capital position remains solid with ratios much in excess of regulatory requirements.

'While the markets remain difficult, we will continue to focus on expanding and diversifying our business and customer base through the launch of retail and consumer finance products that are in line with the new strategic direction,' he added.

'KHCB's plan to diversify and expand its business has been instrumental in securing continued growth,' said chief executive officer Ebrahim H Ebrahim.

'We were able to grow our financing portfolio by over 3.31 per cent compared with December 2009.

'Customer deposits remained stable at the level of December 2009,' he said.

'This reflects our customers' continuing and increasing confidence in our banking products and services.

'KHCB will continue to introduce new retail products to meet its customers' needs,' he said.

'In addition, the board has put through a new strategy directed towards launching its retail banking business and expanding commercial banking.

'We will also continue to work on diligently managing the investment projects structured and brought to market by the bank and expect to partially exit some of these in the second half of 2010,' he added. – TradeArabia News Service