TAIB Bank seeking to post profit next year

15/11/2011 00:00 AST

TAIB Bank's new management team is powering ahead with the transformation of the Bahrain-based financial institution's progress. And it is looking to a return to profitability next year.

In the nine months to the end of September the management managed to cut losses to just $8.4 million from $28.1m for the same period last year.

And the bank continued its progress in the third quarter with the net loss down to $2.7m from $8.5m for the same period last year.

Gross income was up 39 per cent for the period to $9.2m and has been driven by new treasury and brokerage business initiatives and reflects a significant improvement on 2010 net incomes of $6.6m.

Provisions for the period were also dramatically reduced from $18m in 2010, to a writeback of $600,000 in 2011 due to overall better credit management.

In terms of loss trends, in the first quarter TAIB Bank made losses of $3.1m but by the second quarter these losses were reduced to $2.6m and have been contained at $2.7m in the third quarter.

Included in these losses are provisions for staff restructuring costs which are part of the bank's ongoing repositioning strategy. TAIB expects a return to profitability in 2012.

TAIB's capital adequacy ratio improved slightly from 12.05pc in December 2010 to 12.30pc and has been driven primarily by the successful exits of non-core real estate investments.

"The restructuring of our underlying businesses has generated a momentum which is being reflected, albeit tentatively, in this set of results," said chief executive Sohail Sultan.

"Our business undoubtedly, however, has been transformed, and with the ongoing commitment of our staff, whom I must thank, we are well positioned as a new, stronger and more competitive regional bank for a return to profitability in the not too distant future and subsequent growth across the region," he added.

Gulf Daily News