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Bahrain Islamic Bank continue to achieve strong financial results in spite of the international financial and economic crisis

21 January 2009

Bahrain Islamic Bank continue to achieve strong financial results in spite of the international financial and economic crisis which has intensified its grip in the final quarter of last year, an indication of the Bank's ability to continue providing the best banking services and to utilize an optimal mix of financial products and services to attain best profitability for shareholders and depositors alike.

The Bank distributed a press release on Wednesday in which it announced its financial results for the year 2008, where it achieved BD 22.3 million net income compared to BD 25 million for the year 2007, after making adequate provisions against contingences that may arise in case the current international financial and economic crisis continues further.

Speaking on the occasion, Mr. Khalid Abdullah Al-Bassam - Chairman of the Board of Directors, stated that: "This good result and balanced performance which is well known for BisBBisBLoading... is attributed, after Allah Almighty's support, to the continued growth and development in the Bank's products and services through its carefully selected financing operations with equitable returns. This has resulted in a sizeable increase in the total income of the Bank from all Bank's activities amounting to an increase of 50% compared to last year, in spite of the difficulties and instability currently plaguing the international and regional financial markets". Mr. Al-Bassam added that the Bank has chosen to enhance its financial position further as a precautionary measure against any unexpected negative developments during 2009 as a result of the continuing International financial and economic crisis.

Mr. Al-Bassam added that in light of these good results, the board of Directors has decided to propose to the Bank's AGM the distribution of 20% of dividends of paid up capital as of 31st December 2008 as 10% cash and another 10% bonus shares.

Mr. Al-Bassam emphasized that the Bank 2008 results are a clear message to its shareholders, investors and clients in which we ensure our commitment to adhering in offering the best banking and financial services and to be close to them, and the care that the Bank takes in making sure that the financial results are always published early.

Mr. Khalid A. Al-Bassam, Chairman of the Board of Directors, concluded that " These results are attributable to the efforts and dedication of the executive management and our outstanding staff in all departments of the Bank, and we look forward , insha-Allah, to the year 2009 to continue enhancing the Bank overall performance and at the same time be vigilant to what the development in the international and regional financial markets and to set the appropriate strategies to pass this difficult period" He also pointed to the fact that this is the fifth consecutive year in which the Bank continued to distribute cash dividends and bonus shares to its shareholders reflecting the strong financial and operational standing the Bank continues to build .

On his part, Mr. Mohammed Ebrahim Mohammed - CEO of the Bank commented that operating income of the Bank increased by 52% compared to last year, attributing this to the continuance growth in Islamic finances and different investment activities plus the achievement of good returns on the Bank equity investments.

Mr. Mohammed Ebrahim added: " The increase in total income has contributed to the increase in return to investment accounts by 13% compared to last year, which reflects the Bank's management continued commitment to distribute best returns to the investors which in turn will lead to acquiring a larger share of the local market where there is strong and fierce competition, since the bank management is keen in meeting liquidity standards in spite of the financial crisis which proved that Islamic Banks are a source of confidence and strength for investors".

Mr. Mohammed Ebrahim continued to say: "As far as the financial position of the Bank is concerned, total assets registered an increase of 33% during 2008 as compared to 2007 to reach BD 874 million, this increase was mainly due to the increase in Islamic finances and in refraining from investing in all high risk instruments"

The CEO then referred to the Bank deposits which registered an increase of 78%, and current accounts which increased by 15% and noted that this reflects investor confidence being the pioneer bank in the Kingdom, which consolidate its financial position as it enjoys the required level of liquidity and has a successful investment portfolio.

On the other side, Islamic finances registered an increase of 82% compared to last year highlighting the fact that the Bank is granting finances to various economic sectors and actively contributing to the current development and growth in the Kingdom of Bahrain.

The CEO concluded: "We, by achieving these results during the difficult environment currently prevailing in the international financial markets, ensure our shareholders and depositors that we are careful in providing them with the best of services and to invest their deposits with equitable returns and with the minimum risks depending on our long experience which spans three decades and on our track record".

The CEO then thanked the Chairman and members of the Board of Directors for their support and guidance, and all staff members for their continued cooperation and sincere efforts put forward to achieve Bank development and success.
- Ends -
© Press Release 2009

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