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Bahraini shares down 1% as banks post profits
The Bahrain All Share Index on Wednesday closed down 1.05 per cent as more financial institutions posted third-quarter profits and the prime minister highlighted the need to ensure the robustness of the financial system.
- By Habib Toumi, Bahrain Bureau Chief
- Published: 23:32 October 15, 2008
Manama: The Bahrain All Share Index on Wednesday closed down 1.05 per cent as more financial institutions posted third-quarter profits and the prime minister highlighted the need to ensure the robustness of the financial system.
Bahrain Islamic Bank (BIsB) reported $85 million net profit at the end of the third quarter, an increase of 84 per cent over the $46 million during the same period of last year.
"Despite the prevailing global financial crisis due to the mortgage credit crisis in the US, the bank was able, through the application of the Sharia-compliance standards laid down by the Sharia Supervisory Board, to properly select its banking transactions to achieve positive results. In addition, the bank enjoys a high level of liquidity that would enable it to go forward with confident steps," chairman Khalid Abdullah Al Bassam said.
His announcement came one day after Ahli United Bank (AUB) said that despite the tightening liquidity conditions, it had managed to mobilise $3 billion in additional customer deposits during the first nine months of the year.
Sharia-compliant Al Salam Bank Bahrain said that it posted a net profit of 22.7 million dinars ($60.1 million) for the third quarter, up by 30 per cent compared to 17.4 million dinars ($46.2 million) earned during the corresponding period last year.
However, despite the ostensibly positive prospects, Prime Minister Shaikh Khalifa Bin Salman Al Khalifa urged financial authorities to ensure sufficient liquidity in the market, the robustness of the financial system and its ability to withstand any turmoil, and a close monitoring of all developments related to the global crisis.
Al Wefaq, the largest bloc in the parliament, said it would call for an emergency session of the lower house to discuss the crisis.
"The people have the right to know about the latest measures by the government to ensure there is enough liquidity. We have reviewed the examples of the US adoption of the $700 billion economic bailout bill and of UK Prime Minister Gordon Brown and his bank-rescue plan that restored much confidence to markets and stocks," Abdul Jalil Khalil, MP for Al Wefaq, said.
"We need our financial officials to sit with the parliament and brief the MPs on the situation in Bahrain."
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