Bahrain Islamic Bank’s full-year 2019 profit tumbled 45.4% as it picked up higher impairment charges.
Bahrain’s oldest Islamic bank earned a profit of 6.21 million dinars ($16.53 million) last year compared to 11.38 million dinars in 2018, it reported in a filing with the Bahrain Bourse on Wednesday (Feb 12).
The bank coughed up 10.998 million dinars in impairment allowances compared to 8.895 million dinars in 2018, an increase of 23.64%.
“Despite the continuing geopolitical events, which I have mentioned over the past two years, the bank has delivered solid results,” Dr. Esam Abdulla Fakhro, chairperson of the board, said in a statement.
“Profit income, fees and commissions and profit before impairments have all exceeded the previous year. Furthermore, even though expenses increased by 9%, the bank recorded a 6% growth in profit income and 10% growth in fees and commission income,” he added.
The bank’s total expenses was 25.08 million dinars compared to 23.1 million dinars in 2018, a rise of 8.57%.
BisB’s income from jointly-financed assets grew by 6.4% to 57.4 million dinars and fees and commission income increased by 9.68% to 5.92 milion dinars.
The bank’s total assets decreased to 1.22 billion dinars ($3.25 billion) from 1.28 billion dinars at the end of 2018. This is a fall of 4.45%.
Bahrain Islamic Bank is 78.81% controlled by the National Bank of Bahrain after it acquired 49.76% more shares last month.
NBB said the Islamic bank will operate as its subsidiary.
($1 = 0.3760 dinars)
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