Bahrain Islamic Bank (BisB) has registered an increase of 128 per cent in its first quarter net profit which hit BD2.5 million ($6.63 million) compared to BD1.1 million for same period of last year.

This is after deduction of the required net provisions amounting to BD2.7 million, reported the Gulf Daily News, our sister publication.

 Chairman Abdul Razak Al Qassim said the board of directors is in the process of finalising BisB strategy for the coming five years which was developed with the assistance of Boston Consulting Group.

The board has expressed its satisfaction with the positive results which were attained as a result of rationalising investments and directing all efforts towards retail and corporate finance in addition to selected Sukuk investments.

By the support of its major shareholders: NBB, Osool, IDB and Kuwaiti Awqaf, the bank is poised to realise more returns for its shareholders and depositors in the future.

The result reflects strong financial position of the bank where it is relying on income and fees from core finances and activities to a large extent, in addition to the continued efforts on further developing the customer base, stated chief executive Mohammed Ebrahim Mohammed.

The net operating profit before provisions was BD5.2 million as compared to BD5.1 million, total net provisions has reached BD2.7 million as compared to total net provisions of BD4 million.

The Islamic finances have grown two per cent and Sukuk has increased by 87 per cent.

The bank maintains a liquidity ratio of 22 per cent, current accounts registered a growth of 6.5 per cent in addition to the continued drop in the cost of funding as compared to their level at the same period of last year which is proof of the sound and solid financial position of the bank, he said.-TradeArabia News Service