Manama: Despite the challenges that accompanied the spread of the Coronavirus (COVID-19) Pandemic and instability in global markets, Khaleeji Commercial Bank (KHCB) reported remarkable growth and performance throughout the previous year.
“These results reflect the solid ground on which the Bank stands, as well as its infrastructure that’s built on stable financial performance and client confidence, in addition to an ambitious strategy adopted by the Board of Directors towards Capital Strengthening and Banking Operations Development. The Bank renews its commitment to achieving more turning points in its path towards supporting commercial activities and establishing deliberate relations with strategic partners,” Hisham Ahmed Alrayes, KHCB Board Member and AGM Chairman, said, while speaking during the bank’s AGM held on Wednesday.
“The achieved gains in operating income and profit during the past year came as a result of our determined business model and flexible strategy, supported by the new issuance of Tier 1 Sukuk (AT1), which served to achieve more successes and take firm steps to strengthen the basis for all operations and activities of the Bank,” Alrayes, added.
KHCB held its Annual General Meeting (AGM) through a video conference platform and with a quorum of 77.02%. The Meeting was chaired by Board Member Hisham Ahmed Alrayes and was attended by CEO Sattam Sulaiman Algosaibi, members from the Board and Executive Management Team, the Bank’s Shareholders, representatives of the Shari’a Supervisory Board, External Auditors, and regulatory authorities.
The meeting began with the attendees reviewing and approving the Minutes of the previous Annual General Meeting, which was held on 23rd September 2020. The attendees then discussed and approved the respective reports from the Board of Directors, the Shari’a Supervisory Board, and the External Auditors on the Bank’s activities during the financial year ended 31st December 2020.
The AGM approved the Board of Directors’ recommendation to transfer an amount of BD 798,630 to the Statutory Reserve, allocate an amount of BD 229,779 to the Zakah Fund, and transfer an amount of BD 6,957,892 to Retained Earnings. The attendees also approved the distribution of a remuneration worth BD 100,000 to members of the Board of Directors for the financial year ended 31st December 2020, after obtaining all regulatory authorities’ approval.
Afterwards, operations & transactions conducted during the financial year ended 31st December 2020 with any related parties or major Shareholders in the Bank were ratified and approved, as presented in the Notes No. 27 of the consolidated audited Financial Statements.
Furthermore, the Corporate Governance Report for the financial year ended 31st December 2020 and the Bank’s compliance with the Central Bank of Bahrain’s (CBB) requirements were ratified during the Meeting. Additionally, the Board Members were released from any liability for their conduct during the financial year ended 31st December 2020.
The attendees also approved the proposed amendments to the Bank’s Remuneration Framework (the variable remuneration policy and the employee incentive scheme through stock ownership) which was prepared in accordance with the CBB’s requirements, and also authorized the Board of Directors to make necessary amendments to it from time to time as needed, after obtaining the CBB’s approval.
“The Bank was able to achieve the strategic objectives set by the Board of Directors in the year 2020. These goals were based on providing innovative financial solutions, quickly responding to market variables, and understanding clients’ needs and requirements, especially with regards to the package of procedures and facilities provided by the Bank, with the CBB’s guidance, in order to mitigate the negative effects resulting from the spread of COVID-19. Such procedures included deferring installments on financing, raising the maximum limit for Credit and Debit Cards, and supporting companies and SMEs,” Sattam Sulaiman Algosaibi, KHCB CEO, said.
“The Bank reported a positive indicator in its performance by achieving a Net Profit attributable to Shareholders amounting to BD 7.9 million at the end of 2020. Furthermore, and despite the challenges, the Bank was able to achieve growth in its total assets, while the Capital Adequacy Ratio reached 20.31%. KHCB also maintained a Liquidity Coverage Ratio of 198.28% and a Net Stable Funding Ratio of 103.65% for the financial year ended 31st December 2020,” he added.
“We welcome the year 2021 with confidence to continue the development process which we have launched the previous year. Thanks to our Work Team and the strategy being implemented, we will focus on increasing and diversifying our financing activities, as well as establish more new strategic partnerships, enhance the financing portfolio, invest in Sukuk, and continue to work on implementing the Bank’s plan towards Digital Transformation at an accelerated pace, while applying the latest technological findings in banking services.”
