Bahraini retail and commercial banking institution, BMI Bank today announced its financial results for the first quarter ended 31 March 2014. Total assets and total loans and advances as at the end of the period stood at BD 0.80 billion and BD 0.38 billion, respectively, as against BD 0.73 billion and BD 0.38 billion at the end of 2013. Customer deposits grew from BD 0.53 billion as at the end of 2013 to BD 0.58 billion at the end of the first quarter of 2014 at an annualized growth rate of 20%. Further to a previous announcement confirming the conclusion of the Bank’s business combination with Al Salam Bank Bahrain (ASBB), both Banks have updated their respective CR’s to give effect to the share swap and consequently BMI Bank’s new Shareholders on record is now ASBB and ASBB Business Holding.

Whilst the Bank’s underlying business continues to be robust and profitable, the net results for the first quarter of 2014 reflect a loss after provisions of BD 4.3 million as compared to a net profit of BD 0.34 million during the same period in 2013, due to the provision of a one-off merger related operating expense.

Announcing the results for the first quarter of the year, Jamal Al-Hazeem, Chief Executive Officer of BMI Bank said:

“During the first quarter, we rolled out a refreshed Ayadi Savings Scheme with 6 Diyar Homes Villas and a total of 396 prizes worth in excess of USD 1,900,000. We are pleased to note a significant uptake in the product as seen by a 14.7% increase in the overall portfolio size. In addition our generic multi-purpose prepaid card and internet prepaid card have been well received by customers with over 46% of new customers preferring to sign up for the product when opening an account with the Bank. Leading on from the successful foundation laid during the previous years, we have continued our investments in our system, product and services to consolidate our position as a young tech-savvy key player amongst local banks with innovative financial solutions.

I am pleased to inform you that as of the 31^st of March 2014, we have completed the share swap with Al Salam Bank Bahrain and are now working on a gradual and seamless integration of our combined businesses. We believe that this is an excellent step forward for all our stakeholders and both, institutions as well as customers will benefit from the synergy. In effect, customers will soon be able to take advantage of a host of benefits including better pricing and a wider range of products and services including the advantage of banking through a bigger network within Bahrain.

At BMI Bank, we maintain an excellent Capital Adequacy Ratio of over 15% with very strong liquidity as well as a robust and profitable core business. We will continue our focus on providing customers with competitive, unique and innovative financial solutions as we move forward towards finalizing the operational aspects of our business combination with ASBB.”

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About BMI Bank B.S.C. (c)
Bahraini retail and commercial banking institution, BMI Bank is a retail bank, registered in Bahrain and regulated by the Central Bank of Bahrain. The Bank offers its customers a complete range of innovative and unique financial products and services through its extended network of 10 branches and 28 ATMs as at the end of 2013. The Bank’s multi-award winning eChannels, including its corporate website www.bmibank.com.bh have been honored with various prestigious awards helping in consolidating both its position as well as perception within the country as a young tech savvy retail Bank. Adding further support and credibility towards its image, BMI Bank were recently awarded an eContent award at the prestigious 2013 Bahrain eContent Award ceremony for its group website www.bmibank.com.bh as well as for its refreshed state-of-the-art online banking portal under the eBanking category. The Bank reported a net profit of USD 8.8 million (BD 3.3 million) for the fiscal year ended 31st December 2013, an increase of 577% as compared to 2012 which represents its second full-year of profitability as well as its tenth straight net quarter of profit. Total assets at the end of 2013 stood at USD 1.9 billion (BD 0.7 billion) with an excellent Capital Adequacy Ratio of over 16% and very strong liquidity as reported during 31^st December 2013.

On the 8th of September 2013, the Board of Directors of Al Salam Bank-Bahrain (ASBB) and BMI Bank announced that they had resolved to merge the two entities. Correspondingly the shareholders of BMI Bank approved the business combination with ASBB at the Extraordinary General Meeting (EGM) held on the 7th of November 2013 following a similar approval by the shareholders of ASBB during its EGM on the 8th of October 2013.The business combination would be carried out by way of exchanging 11 ASBB shares for each BMI Bank share wherein ASBB would acquire 58,533,357 BMI Bank shares of BD1 each and issue 643,866,927 ASBB shares of 100 fils each. On the 2^nd of February 2014, the Shareholders of both Banks’ confirmed the conclusion of the business combinations after receiving the approval from their shareholders at their respective extraordinary general assembly meetings. As of the 30th of March 2014, both Banks updated their respective CRs to give effect to the share swap and consequently BMI Bank’s new Shareholders on record is now ASBB and ASBB Business Holding.

BMI Bank operates an international branch in Qatar, owns and operates the Diners Club cards franchise in Bahrain and has a 21.33% shareholding in Gulf African Bank – Kenya. BMI Bank offers its local customers a range of retail products and services including regular savings and current accounts, Visa gold and classic credit cards, a Platinum credit card with rewards from Gulf Air’s Falconflyer program, a Diners Club credit card including an Ayadi Plus Diners Club credit card and La Carte, a co-branded Visa credit card in partnership with Geant Hypermarket Bahrain and the recently launched Muharraq Club Titanium Credit Card. The Bank also offers customers the chance to win a total of 396 prizes worth in excess of USD 1,900,000 through its flagship savings scheme “Ayadi” including 6 Diyar Homes Villas as Grand Ayadi prizes as well as an “Ayadi for Students” account exclusively for students with prizes awarded during the year. The Bank also offers customers fixed deposits, a new phone banking and mobile banking service that enables customers to carry out most of their regular banking transactions in a safe and secure environment using their phones. BMI Bank recently unveiled “Prestige” its premier service proposition, catering to the affluent individual looking to receive personalized attention and tailored financial solutions from their banking partner.

In line with its ongoing commitment towards building a stronger CSR program and giving back to the community, BMI Bank has firm financial commitments towards various local charities including the Al Sanabel Orphans Care Center, Royal Charity Organization, Muharraq Social Welfare Center, American Mission Hospital’s (AMH) Community Outreach Program, the Island Classic Charity Golf Tournament and Think Pink Bahrain as well as with the Bahrain Red Crescent Society, Bahrain Disabled Sports Federation, Al Noor Charity Welfare and the Children Mother’s Welfare Society amongst others.

For further information, please contact:
Gordon Andrade
Head, Corporate Communications
BMI Bank – Bahrain
E-mail: gordon.andrade@bmibank.com
Cell: +97339782225

© Press Release 2014

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