Bahrain Islamic Bank registered at net profit of BD543,000 ($1.4 million) in first quarter of this year compared with BD1.5 million for the same period last year.

Operating profit was BD2 million compared with BD2.5 million last time and the bank has taken provisions of BD1.5 million as a precaution against any unforeseeable deterioration in asset values compared with BD1 million last time.

The income has all been generated from major core activities of the bank.

Chairman Khalid Abdulla Al Bassam expressed his satisfaction on the increase in customer deposits by BD30 million in the first three months which equals five per cent of total deposits.

"All financial indicators for the first quarter are in favour of the bank - whether it is availability of liquidity, increase in customer deposits and Islamic finance for corporate and individuals or the decrease in the cost of deposits," said chief executive Mohammed Ebrahim Mohammed.

The liquidity indicator reached 24 per cent for the first quarter, Islamic finances increased by 4 per cent, and cost of deposits has been lowered to a great extent, plus the decrease in expenses as compared with income which has decreased to 43 per cent compared with 51 per cent last year.

"What has been accomplished represents the right track for the bank," said Mohammed.

"The bank now relies totally on income and fees from finance and core activities which represent more than 90 per cent of total operating income and this income does not contain any revaluations or unearned profit.

"This result is a consequence of the advanced and developed services presented by the bank and enjoyed by all its clients. Work is underway in the five malls, to be developed by the bank, and is running according to schedule," he said.

"It is expected that construction of some of the malls will be finalised by the end of this year, and these will be inaugurated in the first quarter of next year," he added. - TradeArabia News Service