Bahrain-based Al Baraka Islamic Bank, a subsidiary of Al Baraka Banking Group, said it posted solid results in the first quarter with its net operating income surging by a staggering 151.75 per cent compared to last year.

Announcing the first quarter results on Saturday, the bank said its operating income had increased by 67.3 per cent despite the recent unrest in the kingdom.

These results highlight the strong financial position of the bank as well as the sound economic standing of Bahrain which remains business friendly, it added.

The bank's finance and investment portfolio had also increased by 6.1 per cent at the end of first quarter compared with the end of last year.

The bank held its 28th ordinary annual general meeting (AGM), which discussed the directors' report covering the bank's activities during the last financial year.

The bank's Sharia Supervisory Board report for last financial year and auditor's report were also presented, following which the final accounts of the bank for the financial year were approved as well as the bank's plan for the implementation of the corporate governance for banks in accordance with the instructions of the Central Bank of Bahrain.

Thereafter, a new board of directors was elected for the coming three years.

The new board of directors of the bank then held its first meeting, where it re-elected Khalid Rashid Al Zayani as chairman and Adnan Ahmed Yousif as vice-chairman.

The financial accounts of the bank for the first quarter show that the total income of the bank amounted to $12.11 million, compared with $7.24 million in the first quarter of 2010, reflecting an increase of 67.3 per cent.

After deducting all operating expenses, the net operating income amounted to $2.24 million, an impressive increase of 151.75 per cent compared with the first quarter of 2010.

After setting aside provisions and tax charge, net income amounted to $1.81 million for the first quarter of this year compared with a loss of $0.602 million in the first quarter of 2010.

The improvement in profit reflects the improved quality of the income-generating assets as represented by a decline in the amount of non-performing assets as well as a higher income from foreign trade finance and the arrangement of new financing deals.

The financial accounts of the bank for the first quarter of 2011 also show a slight decrease of 1.74pc in the total assets of the bank to reach $1.32 billion at the end of first quarter.

This was because of a 2.54 per cent decline in customer deposits and unrestricted investment accounts to reach $1.08 billion, while the financing and investments portfolio had increased by 6.1 per cent to amount to $1.11 billion as at the end of March 2011.

Total equity amounted to $162.76 million at the end of first quarter, 2011, reflecting an increase of 0.66 per cent.

'We are proud to see a quick return by the bank to achieving good results, considering that the first quarter of this year has witnessed some unfavourable developments in the kingdom,' said Al Zayani.

'Because of the strong economic and financial fundamentals of the kingdom, we were able to continue with our outstanding performance relying on the business strategy that we had launched last year.

'This was because our business strategy included many initiatives in the area of product diversification, expanding the branch network, enhancing our foreign trade finance operations and other initiatives that have had good impact on the bank's results in the first quarter of 2011.'

Yousif, who is also the president and chief executive of Al Baraka Banking Group, said the early preparation measures that had been taken by Al Baraka Islamic Bank had clear positive effects on the bank's performance during the first quarter.

'We were able to return to profitability while at the same time we continued to build up provisions to guard any possible adverse developments in the future,' he remarked.

'Our good performance was the result of the concerted efforts to diversify our sources of income, strengthen the capital resources and continue build and develop the human and technical resources of the bank,' he added.

Al Baraka Islamic Bank CEO Mohammed Isa Al Mutaweh said, 'We have continued our efforts especially in the area of expanding our relations with major industrial and commercial firms in Bahrain to provide them with services that meet their banking needs, as well as enhancing our relations with government and semi-government institutions.

'At the same time, we expanded our branch and ATM networks,' he added.-TradeArabia News Service