Bahraini retail and commercial banking institution, BMI Bank reported a net profit of $900,000 for the first quarter of the year ended 31 March 2013, an increase of 125% as compared to a net profit of $400,000 recorded over the corresponding period in 2012, mainly due to improved recoveries against impaired loans.
The total income for the quarter was $15.2 million representing an increase of 5.6% as compared to $14.4million reported during the corresponding period in 2012, primarily driven by a 15% increase in net interest income which grew to $12.1 million during the quarter as against $10.5 million during the first quarter of 2012. Total assets and total loans and advances as at the end of the period stood at $2 billion and $1.3 billion, respectively, at the same level as of end of 2012. Customer deposits grew from $1.41 billion as at the end of 2012 to $1.47 billion at an annualized growth rate of 15%.
“Equipped with excellent shareholder support, strong liquidity and guided by a refreshed strategy that was implemented in 2011, we embarked on transforming BMI Bank into a stronger retail and commercial banking business with a clear focus on Bahrain. Our commitment to deliver on an enhanced and rewarding customer experience was realized through the launch of several refreshed and new customer-centric product and service initiatives that has helped us to significantly increase our market share within Bahrain over the past few years whilst maximizing our shareholders’ returns,” Jamal Al-Hazeem, Chief Executive Officer of BMI Bank, said.
“We began 2013 with a continued emphasis on product and service innovation as well as stronger levels of customer service and I am pleased to report a net profit of $900,000 for the first quarter of the year representing our seventh straight quarter of net profits,” he said.
“During the quarter we strengthened our network through the inauguration of our 10th full service branch at Salmabad helping us to effectively reach out to our customers across all key districts of Bahrain by catering to discerning financial requirements. Following the unparalleled success achieved by our flagship retail product Ayadi Savings Scheme in the previous years, we rolled out a new revamped prize structure with an increased prize pool of $1.8 million in 2013. Ayadi now offers its customers 4 Diyar Homes Villas as Grand prizes in addition to 416 monthly winners and 24 special cash prizes introduced to specifically benefit students, to be given out throughout the year. The product has grown by nearly 150% since it was re-launched in 2011 and has seen a resounding 16% growth in portfolio during the first quarter of 2013.”
“We also recently announced the launch of Prestige our premier service proposition, catering to the affluent individual looking to receive personalized attention and tailored financial solutions from their banking partner. Through all the various customer-centric initiatives undertaken during in the recent past as well as some that are currently underway, I strongly believe that BMI Bank is now well placed to solidify its position as a leading retail bank in Bahrain,” he added.
“At BMI Bank, we continue to maintain an excellent Capital Adequacy Ratio of over 19% with strong liquidity and a portfolio of unique and innovative products and services and will continue to focus on growing our business along with customer numbers during the year.”