Khaleeji Bank Reports Net Profit of BD 9.003 million Attributable to Shareholders in 2023

Khaleeji Bank B.S.C has announced a total net loss attributable to the Bank’s shareholders of BD 402 thousand during Q4 2023, compared to a profit of BD 3.12 million in the same period in 2022, a decrease of 112.87%.

Earnings per share reached -4.251 Fils during Q4 2023, compared to 0.154 Fils for the same period of the previous year. Total income before return to investment account holders amounted to BD 21.578 million during the last quarter of this year, compared to BD 18.571 million for the same period of the year 2022, an increase of 16.19%. The increase is mainly attributable to the bank recording an increase in income from placements with financial institutions, investments in securities, fees and other income.

The financial results also showed that the bank achieved a net profit of BD 9.003 million attributable to the Bank’s shareholders for the fiscal year ended 31st December 2023, compared to a net profit of BD 14.007 million for the same period of the previous year, a decrease of 35.72%. Earnings per share reached 3.753 Fils in 2023, compared to 9.987 Fils in 2022. The bank reported an increase in income before return to investment account holders reaching BD 88.271 million during 2023, compared to BD 62.204 million for the same period in 2022, with an increase of 41.91%. The aforementioned increase is attributable to the bank recording an increase in income from financing assets, placements with financial institutions, investments in sukuk and investment securities, fees and other income.

Equity attributable to owners of the parent reached BD 148.715 million in 2023, compared with BD 147.642 million reported by the end of 2022, with an increase of 0.73%. Meanwhile, the total growth in the Bank’s assets was recorded at 5.38%, reaching BD 1,502.4 million, compared to BD 1,425.7 million in 2022. Investment in Sukuk slightly decreased to reach BD 522.75 million in 2023 compared to BD 523.33 million at the end of 2022, a decrease of 0.11%. At the same time, the financial results showed a decrease in total deposits by 4.83% to reach BD 1,057.83 million, compared to BD 1,111.53 million at the end of last year.

Commenting on the financial results, Mr. Hisham Ahmed Alrayes, Chairman of Khaleeji Bank’s Board of Directors, stressed that the bank is moving in the right direction despite all the surrounding circumstances. He stated that the bank is adhering to an ambitious strategy based on innovation and creativity to provide the best banking products & services, which have an important impact in achieving the bank’s visions, in line with its new identity to achieve the ambitions of the youth and pave the way for them to excel and succeed.

Mr. Alrayes further stated “These results were achieved despite how financial institutions around the world have been affected by the high cost of financing due to the increase in global profit rates and their impact on local profit rates, which has been reflected in the performance of most institutions operating in the banking sector. We are aware of the challenges associated with high profit rates and their impact on growth rates, which is why we have harnessed our resources to overcome them and ensure the sustainability of the bank’s profitability, based on the Kingdom’s favourable economic environment which is of great importance to the prosperity and excellence of banks. We will continue our distinguished journey towards new horizons of success, confident in Khaleeji’s new vision and strategy in line with its identity and goals.”

Mr. Alrayes concluded saying “In this regard, I would like to extend my sincere gratitude and appreciation to our valued clients for their trust and faith in Khaleeji Bank. I would also like to express my gratitude to our team for what they have provided during a busy and successful year.”

For his part, Mr. Sattam Sulaiman Algosaibi, Chief Executive Officer of Khaleeji Bank, commented “Despite all the regional and local challenges, we are proud of what we achieved last year, which constituted an important milestone in the history of this national financial institution with the launch of its new identity under the name “Khaleeji Bank”. This is in line with the prominent position that the bank now occupies in the Kingdom and the GCC region as a key partner in ambition, development, and achievement.”

Mr. Algosaibi also said “These results are consistent with the bank’s strategic plans over the past year and the coming period, with the announcement and launch of the bank’s new identity being one of its most important milestones, in a way that is commensurate with the prominent position that Khaleeji has now occupied in the Kingdom and the GCC region as an essential partner in ambition, development, and achievement.”

Furthermore, Mr. Algosaibi explained: “In this context, during the year 2023, the bank has continued to conclude fruitful partnerships with a number of public and private sector institutions, which included signing a credit facility agreement worth USD 200 million with the Bapco Energies, signing a strategic partnership agreement with STC Pay, and signing an MoU with the Social Insurance Organisation aimed at strengthening the partnership between the two parties to facilitate the provision of pension exchange services to citizens under the Organisation’s umbrella in compliance with the provisions and principles of Islamic Shari’a, in addition to signing an agreement with the Labour Fund “Tamkeen” to launch a special financing program aimed at supporting Bahraini doctors working in the public and private sectors who wish to complete their studies.”

Mr. Algosaibi also mentioned “The bank was keen to expand cooperation with the Ministry of Housing & Urban Planning and Eskan Bank to provide Home Financing solutions with exceptional benefits to citizens who meet the criteria of social housing programs, in addition to several leading real estate development companies in the Kingdom. During the past year, Khaleeji has also announced the launch of the “Salary Account”, which is compatible with the principles and provisions of Islamic Shari’a, offering unique benefits such as an expected profit rate of up to 4%, a chance to enter monthly raffles for valuable cash prizes, and other exclusive benefits. Additionally, the bank has celebrated the graduation of the first cohort in its innovative and exclusive training program “Banking Gateway” during the past year, which it launched with the aim of arming those newly joining the labour market with the necessary experience and skills to adapt to job requirements in the banking sector. Moreover, the bank has signed a joint cooperation agreement with the Royal Medical Services to build a specialised center for prostate cancer, equipped with the latest international technologies.”

Mr. Algosaibi concluded saying “We will work during the current year to continue this expansive approach, which will enhance the bank’s leadership position in the Islamic Banking sector, in a way that achieves the ambitions of our valued partners, clients, and shareholders.”

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