Islamic Finance

Acquisition target Bahrain Islamic Bank quarterly profit drops 49%

Bahrain Islamic Bank posted a drop in profit of 48.51% for the three months ending September 30 as impairment costs rose.

The bank reported in a bourse filing on Tuesday (November 5) 1.73 million dinars ($4.59 million) in profit for the third quarter compared to 3.37 million dinars for the same period in 2018.

The bank’s income held steady at 10.81 million dinars versus 10.9 million dinars last year but net impairment allowance ballooned 134.53% to 2.61 million dinars.

Its assets have also dipped, from 1.28 billion dinars at the end of 2018 to 1.23 billion dinars at September 30, a decrease of 3.84%.

Bahrain Islamic Bank is the target of acquisition by the country’s biggest lender, National Bank of Bahrain, that on November 3 made a formal offer to buy a minimum of 40.94% of the Shariah-compliant bank.

NBB already owns 29.06% of Bahrain Islamic Bank.

($1 = 0.38 Bahraini dinars)

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