The bank in a statement said it had decided to raise provisions prudently in order to start 2011 with a renewed focus on growing the business.
Underlying business continued to do well in 2010 with Bahrain registering good growth, the bank said it still enjoys an excellent capital adequacy ratio of 20 per cent.
“2010 was another year of customer base growth and consolidation for the Bank as well as our brand with a steady roll out of new customer centric products and services,” said Jamal Al-Hazeem, the Chief Executive Officer of BMI Bank.
“At BMI Bank, we still maintain an excellent Capital Adequacy ratio of 20 per cent with strong liquidity and a portfolio of unique and innovative products and services. Our financial results for 2010 reflect the impact of provisions taken on exposures which have not performed as expected, resulting in a net loss of BD 26.5 million for the year. Whilst we are disappointed by the need to raise provisions on these exposures, it is a very prudent and sensible approach which helps us move into 2011 with a renewed focus on strengthening our business in line with our vision,” he said.
“BMI Bank has experienced consistent growth over the last five years and by enhancing our product offering and growing the branch and ATM network in Bahrain; we have improved the customer offering and made BMI a stronger choice for our customers. The underlying business continued to do well across all segments in 2010 with good growth shown in our operations in Bahrain. We strengthened our product offering with the launch of a Sharia-compliant financing scheme in partnership with Tamkeen, offering enterprises within the private sector quick and convenient access to financing to meet their expansion plans as well as help in enhancing their productivity. We also recently announced the launch of our flagship savings product- under a new name Ayadi and with an increased prize pool of $1.66 million,” he said.
“As a responsible Bahraini Bank, we strengthened our Corporate Social Responsibility (CSR) program in 2010 by actively participating in community outreach and social awareness programs in partnership with American Mission Hospital, the Ministry of Social Development and Think Pink Bahrain. During the year we also signed on Bahraini Olympian Sami Al Kooheji as BMI Bank’s brand ambassador to promote and inspire young Bahrainis to constantly achieve their dreams and seek new challenges.”
“We look forward to the future with optimism whilst continuing to invest in our people, brand, product and services with a renewed commitment to provide our customers with simpler and quicker banking solutions with streamlined processes. We have a stable and growing business to leverage on with strong shareholder and customer support and will continue to work with BankMuscat to explore and deliver synergies from operating as part of a wider group. I take this opportunity to thank the Central Bank of Bahrain, our shareholders and customers for their confidence in our capabilities and our staff for their continued commitment and support.”
BMI Bank recently unveiled its refreshed brand identity under a new tag line, ‘better, together’, strengthening its position as an entirely customer and customer-service driven bank.