July 2009 During the first half of 2009 Bahrain Islamic Bank Bahrain Islamic Bank made BD16 million in operating profits underlining the continuous growth of the Bank in spite of the numerous difficulties faced by the regional markets that were negatively affected by the current global financial crisis.

BisB BisB Chairman Mr. Khalid Abdulla Al Bassam said in a press release issued by the Bank on Tuesday that the Bank's assets grew by 5% as compared with December 2008 totalling BD919 million. Islamic finance deals increased by 10% during the last six months an indication of the continuous growth in the financing portfolio, especially with regard to the personal and retail finance sector. This particular sector is significantly focused upon by the Bank in recent years to build a solid and varied finance base to spread and reduce risk exposure.

Meanwhile, the Bank announced a large increase during the last 6 months in the customers' investment deposits and current accounts which totaled 17% and 13% respectively. Such figures demonstrate the depositors growing confidence in the Bank's financial position and good reputation gained during the last 3 decades.

Commenting on the results, Mr. Mohamed Ebrahim Mohamed, BisB BisB Chief Executive said the Bank is proceeding successfully toward achieving its strategic objectives in terms of the growth of the Sharia'a compliant assets with stable and sustained profitability and focusing on the retail sector by offering the best and most competitive products and services.

In addition, Mr. Ebrahim further said the Bank has recently won the Best Islamic Financial Institution in Bahrain Award 2009 from the US magazine Global Finance owing to the prudent policy pursued by the Bank in the current financial crisis in addition to avoiding the high risk exposure whole offering the best banking services and continuously developing them with the aim of enhancing its market position.

He added the current economic conditions witnessed by the region call for extreme caution, hence the Bank's management has set aside more provisions to deal with any future default in keeping with the directives of the Kingdom's regulatory authorities. This is particularly relevant following the release of confirmed reports about the failure of two major family businesses in a neighbouring Gulf country. After the appropriations, the Bank's net profits for the period totaled BD2,177 million.

He continued by saying: "Since the Bank seeks to offer the best services to its customers, three branches have been re-opened following the completion of their complete refurbishment with the aim of providing customers with more convenience and better customer services. The Bank's Chief Executive further said the fourth quarter of the current financial year would witness the laying of the foundation stone of the Bank's first financial mall in one of the busiest commercial areas in the Kingdom. The Bank also plans to open five more branches in the next few years to meet the growth in customer numbers throughout the Kingdom.

The Chief Executive expressed his thanks and appreciation to the Chairman and members of the Board of Directors, members of the Sharia'a Supervisory Board, executive management and all the employees for their efforts for the growth and success of the Bank. He also thanked the regulatory authorities overseeing the Islamic banking industry and expressed his appreciation to all the Bank's customers for their confidence in the Bank. -Ends-

© Press Release 2009 omar 1.1:zy