Bahrain-based Bank Alkhair, an Islamic wholesale bank, said it had returned to profitability with a net profit of $4.7 million for the year ended December 31, 2013 compared to a loss of $39.8 million the year before.  

The growth was driven mainly by income from gain on acquisition of assets held for sale, income from investment securities, fees, commissions and improved operating efficiency, said the bank in a statement.

Bank Alkhair said its net profit for the fourth quarter hit $4.1 million compared to a loss of $13.9 million during the same period in 2012.

The Islamic lender's total income increased to $34.7 million in 2013 and total operating expenses reduced by 30 per cent from $44.5 million to $31.2 million when compared to the same period last year.

This was largely due to streamlining of the bank’s activities year-on-year, said the bank in its statement.

Total assets increased by 42 per cent, to $628.6 million with a 27 per cent increase in total equity to $248.6 million in 2013, it added.

Commenting on the results, chairman Yousef Al-Shelash said: "The turnaround in the financial performance as reflected in our net profit of $4.7 million in 2013 is a resurgence of the bank’s commercial activities in our core markets and a testament to our refocused business model which has steered the Bank’s trajectory to return to profitability and strengthen its position."

He said the bank will continue to invest and strengthen its subsidiaries in Saudi Arabia, Turkey and Malaysia and also take concrete measures to streamline its operational activities.

"I remain confident that going forward, the Bank is positioned to deliver stronger, highly visible growth in 2014 and beyond with a substantially improved balance sheet," he added.

Jonathan Holley, the acting CEO, said: "Despite the challenging financial environment in 2013, our efforts were focused on extracting value from each of our target markets which has resulted in the Bank returning to profitability."

"Besides identifying unique opportunities in the market to secure durable and consistent sources of income, we are also committed to accelerating our business growth through investments in our different markets with continued operational stability in the short term and sustainable profitability in the long term,” he added.-TradeArabia News Service