Khaleeji Bank profit rises


Islamic lender Khaleeji Commercial Bank yesterday said first-quarter net profit increased by 213 per cent to BHD12.6 million (Dh122.7m) compared to BHD4m for the corresponding period in 2007.

Total assets grew by 187 per cent to BHD308.5m and customer deposits increased by 130 per cent at the end of March.

On an annualised basis, return on average assets was 17.4 per cent, and return on average equity was 39.9 per cent, it said. Islamic financing assets reached a cumulative book size of BHD106.9m.

Chairman Dr Fuad Al Omar said: "The year has started exceptionally well for Khaleeji Commercial Bank. The excellent financial results were achieved by executing a clearly defined strategy to position the bank as a leading regional Islamic financial institution delivering innovative Islamic financial products and services to customers in the GCC and MENA regions.

"We are already beginning to see the benefits of some of our strategic decisions implemented last year. The increase in our paid up capital from BhD30m to BHD100m is enabling us to pursue our growth strategy more aggressively both in the corporate banking and investment banking business segments. We have also benefited from our strategic partners, who include some of the most reputable financial institutions in the region."

Chief Executive Ebrahim H Ebrahim said: "The commercial banking division has performed well, increasing deposits and financing assets, further benefiting from local and regional economic activity. The investment banking division continues to perform very well. We completed the placement of Danat India Investment Company, with an equity value of $163.5m (Dh600m)."