Bahraini retail and commercial banking institution BMI Bank yesterday reported a net profit of $1.4 million for the first half of the year as against a net profit of $700,000 during h1 2012, marking an increase of 88 per cent.

This was mainly due to improved recoveries against impaired loans along with a one-off exceptional income, said a report in the Gulf Daily News, our sister publication.

The net profit for the three months ended June 30 was $500,000, compared with $400,000 last time.

Total income for the first half was $28.6 million as against $28.3 million last time, primarily driven by an 8 per cent increase in net interest income which grew from $20 million to $22.1 million.

Total assets as well as total loans and advances at the end of the first half stood at $2 billion and $1.3bn respectively.

Customer deposits grew at an annualised growth rate of 9.2 per cent from $1.4bn to $1.5bn.

"Our net profit of $1.4 million, achieved against the backdrop of a challenging environment, yet again demonstrates the effectiveness of our strategy which drives the business lines and service channels at our bank," said chief executive Jamal Al Hazeem.

"This performance, which represents our eighth quarter of straight profitability, together with our continued emphasis on rolling out customer-centric innovative products and services, helps in cementing our position as a key retail bank within the country.

"Following on from the positive momentum in our first quarter, we rolled out several new initiatives including Prestige, our premier service proposition, that caters to the affluent individual as well as our second co-branded credit card product Ayadi Plus in partnership with Diners Club.

"The Ayadi Plus card offers customers who pay for purchases with the card an opportunity to win cash prizes on our flagship retail product the Ayadi Savings Scheme including the grand Ayadi prize of a Diyar Homes Villa.

"We also rolled out two new offsite ATMs, one at Enma Mall in East Riffa and one at the Ba per cento fuel station besides Muharraq club, strengthening our network of ATMs to a total of 30 across Bahrain along with our existing 10 retail branches," he said.

"During the first half, we witnessed a growth of 23.5 per cent in our retail banking customer deposits as compared to the previous year and a 25 per cent increase in Bancassurance annual premiums as compared to the second half of 2012, demonstrating an uptake in customers' acceptance of our rates and services," he added.

"At BMI Bank, we continue to maintain an excellent capital adequacy ratio with strong liquidity and a portfolio of unique and innovative products and services," he said.

"We will continue to focus on growing our business along with customer numbers during the year in line with our strategy of consolidating our position as a solid retail bank in Bahrain," he added.

The bank had earlier posted a net profit of $900,000 for the first quarter of 2013. – TradeArabia News Service