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Transcript of Bahrain Islamic Bank B.S.C. - bisb.com · B.S.C. ("the Bank") and its subsidiary ("the Group") as...
Bahrain Islamic Bank B.S.C.
INTERIM CONDENSED CONSOLIDATEDFINANCIAL STATEMENTSI31 MARCH 2006 (UNAUI)ITED)
I
IIIII
IIII
. Phone: 17 53 54 55Fax: 1 7 53 54 [email protected]/meC.R. No. 6700
. P,O'lBox 140
14th Floor - The TowerBahr~in Commercial ComplexMan~maKing~om of Bahrain
REVIEW REPORT TO THE BOARD OF DIRECTORS OFBAHRAIN ISLAMIC BANK B.S.C.
We have reviewed the accompanying consolidated balance sheet of Bahrain Islamic BankB.S.C. ("the Bank") and its subsidiary ("the Group") as of 31 March 2006, and the relatedconsolidated statements of income, cash flows, changes in equity, sources and uses of goodfaith qard fund and sources and uses of zakah and charity fund for the three month periodthen ended. These interim condensed consolidated financial statements and the Bank'sundertaking to operate in accordance with Islamic Shari' a rules and principles are theresponsibility of the Bank's Board of Directors. Our responsibility is to issue a report onthese interim condensed consolidated financial statements based on our review.
I
We conducted our review in accordance with International Standard on ReviewEngagements 2400. This Standard requires that we plan and perform the review to obtainmoderate assurance as to whether the interim condensed consolidated financial statementsare free of material misstatement. A review is limited primarily to inquiries of Bankpersonnel and analytical procedures applied to fmancial data, and thus provides lessassurance than an audit. We have not performed an audit and, accordingly, we do notexpress an audit opinion.
Based on our review, nothing has come to our attention that causes us to believe that theaccompanying interim condensed consolidated [mancial statements are not presented fairly,in all material respects, in accordance with note 2.
~~Ai~IQ:t T H
5 April 2006Manama, Kingdom of Bahrain
A Member of Ernst 8. Young Global
Audited31 December
2005BD'OOO
31 March2006
BD'OOOASSETS
Cash and balances with the BMA and other banksMurabaha receivablesMudaraba investmentsMusharaka investmentsNon-trading investmentsInvestment in associatesInvestments in Ijarah assetsIjarah Muntahia BittamleekInvestments in propertiesOther assets
TOTAL ASSETS
11,454174,25416,09610,62387,3053,2615,130
21,04310,2112,399
341,776
10,448156,42129,4599,889
80,7483,3825,174
12,75210,3412,082
320,696
LIABILITIES, UNRESTRICTED INVESTMENT ACCOUNTS AND EQUITY
ILIABILITIESCustomers' current accountsOther liabilities
71,1077,570
47,3453,562
TOTAL LIABILITIESI 78,677 50,907
UNRESTRICTED INVESTMENT ACCOUNTS 194,159 197,881
EQUITYShare capitalShare premiumReserves
28,336
2,726
37,878
TOTAL EQUITY 68,940
25,3002,726
43,882
71,908
I TOTAL LIABILITIES, UNRESTRICTEDINVESTMENT ACCOUNTS AND EQUITY 341,776 320,696
I CONTINGENCIES (Note 3) 6,460 7,090
~
(~~~~""-(.J-Khalid Abdulla AI Bassam
ChainnanYousif Saleh Khalaf
Chief Executive Officer
Bahrain Islamic Bank B.S.CCONSOLIDATED STATEMENT OF INCOME31 March 2006 (Unaudited)
Three months ended 31 March
2006
BD'OOO
2005
ED'OOOINCOMEIIncome from Islamic [fiances 4,275 2,575
Return on unrestricted investment accounts beforeBank's share as a Mudarib
Bank's share as a Mudarib3,479
(1,512)1,179(143)
1,967 1,036Return to unrestricted investment accounts
Bank's share of income from unrestricted investmentaccounts (as a Mudarib and Rabahnal) 2,308 1,539
2,16123946
459
1,25524743
140
Income from investmentsGain on fair value adjustment for investments in propertiesBank's share in the profit of associatesOther income 1
Total income 5,213 3,224
EXPENSESIStaff costsDepreciationOther expenses
904131358
718122341I
Total Expenses 1,393 1,181
Net income before Zakah 3,820 2,043
Zakah (34)
NET INCOME FOR THE PERIOD 3,820 2,009
I BASIC EARNINGS PER SHARE (fils) 13.85 8.13
I
Khalid Abdulla AI Bassam
ChairmanYousif Saleh Khalaf
Chief Executive OfficerII
3
Bahrain Islamic Bank B.S.C.CONSOLIDATED STATEMENT OF CASH FLOWS31 March 2006 (Unaudited)
Three months ended 31 March- -
3,820 2,009
IOPERATING ACTIVITIESNet profit for the periodAdjustments for non-cash items:
DepreciationGain on fair value adjustment for investments in propertiesGain on sale of investments in properties and Ijarah assetsBank's share in the profit of an associateI
131(239)(19)(46)-
122(247)(357)(43)--
Operating profit before changes in operating assets and liabilities
Changes in:Mandatory reserve with BMAMurabaha receivablesMudaraba investmentsMusharaka investmentsOther assetsCustomers' current accountsOther liabilitiesI
(1,485)(17,833)13,363
(734)(404)
23,7624,008
24,324
5182,359(572)
(1,266)(421)
2,2327,843
12,176Net cash from operating activities
II
(8,291)388
(9,050)
(16,953)
(4,055)(1,106)(3,653)
(8,814)
INVESTING ACTIVITIESPurchase of Ijara Muntahia BittamleekDisposal (Purchase) of investment in properties and Ijara assetsPurchase of non-trading investments and associates
Net cash used in investing activities
II
FINANCING ACTIVITIESDecrease in unrestricted investment accountsDividends paidDirectors' remuneration paidZakah paidCharitable contributions paid
(3,722)(3,795)
(120)(138)(75)
(7,850)
(1,855)(701)
(2,556)Net cash used in fmancing activities
I NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS (479) 806
4,483 3,269Cash and cash equivalents at beginning of the period
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD 4,004 4,075
CASH AND CASH EQUIVALENTS COMPRISE:Cash and balances with BMA, excluding mandatory reserve depositsBalances with other banks
2,2611,743
I2,5351,540
The attached notes 1 to 4 fonD part of these interim condensed consolidated financial statements.4
2006 2005BD '000 BD'OOO
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Bahrain Islamic Bank B.S.C.CONSOLIDATED STATEMENT OF SOURCES AND USES OF GOOD FAITHQARDFUND31 March 2006 (Unaudited)
Audited31 December
2005BD'OOO
31 March2006
BD'OOO
Original sources of qard fund
I Contribution by the BankDonations
1253
1253
128 128
Movement of funds
I Cash balance at the beginning of the periodInstallments received
1231
10914
124 123
1235
1235
Cash balance at the end of the periodQard Hasan installments outstanding as at end of the period
128 128
6
Bahrain Islamic Bank B.S.C.--
CONSOLIDATED STATEMENT OF SOURCES AND USES OF ZAKAH ANDCHARITY FUND31 March 2006 (Unaudited)
Audited31 December
2005BD'OOO
31 March2006
BD'OOO
Sources of zakah and charity funds
I Undistributed zakah and charity funds at the beginning of the periodZakah due from the Bank for the period
13990
147138
Total sources of funds during the period 229 285
Uses of zakah and charity funds
I University and school studentsPhilanthropic societiesAid to needy families
1011917
37
10 146Total uses of funds during the period
Undistributed zakah and charity funds at end of the period 219 139
III
II
II
IThe attached notes 1 to 4 fonn part of these interim condensed consolidated fmancial statements.
7
1 INCORPORA TION AND ACTIVITIES
Bahrain Islamic Bank B.S.C. ("the Bank") was incorporated in the Kingdom f Bahrain by Amiri Decree No.2of 1979, under Commercial Registration No.9900, to carry out banking and her fmancial trading activities inaccordance with the teachings of Islam (Shari' a). The Bank operates under a c mmercial banking licence issuedby the Bahrain Monetary Agency. The Bank's Shari'a Supervisory Board i entrusted to ensure the Bank'sadherence to Shari'a rules and principles in its transactions and activities.
The Bank participated in 100% of the share capital in AI Emar Real-Estate C~mpany B.S.C. ("subsidiary"). AIEmar was incorporated on 8 April 2003 and has an authorized and paid-up sha~e capital of BD 10,000,000.
IThe Bank's registered office is at Building 722, Road 1708, Block 317, Manania, Kingdom of Bahrain.
The Bank has twelve branches, all operating in the Kingdom of Bahrain.
2 ACCOUNTING POLICIES
Basis of preparationThese interim condensed consolidated financial statements have been pr ared in accordance with theInternational Accounting Standard 34 "Interim Financial Reporting". The ccounting policies used in thepreparation of the interim condensed consolidated financial statements are c nsistent with those used in thepreparation of the annual financial statements for the year ended 31 December 005, which financial statementswere prepared in accordance with Financial Auditing Standards issued b the Accounting and AuditingOrganisation (AAOIFI) for Islamic Financial Institutions. For matters for whic no AAOIFI standards exist, theBank uses the relevant International Accounting Standard issued by Internation I Accounting Standards Board.
Basis of consolidationThese interim condensed consolidated financial statements include the financi I statements of the Bank and itssubsidiary. A subsidiary is an entity over which the Bank has control to go em its fmancial and operatingpolicies in order to obtain benefits from its activities. The subsidiary is co solidated from the date it wasincorporated and was included in the interim condensed consolidated financi I statements using the purchasemethod of accounting. All intercompany balances, transactions and inc e have been eliminated onconsolidation.
3 CONTINGENCIES
Credit related commitments
Audited31 December
2005BD'OOO
31 March2006
BD '000
Letters of creditGuarantees
5,862598
5,4941,596
6,460 7,090
4 INCOME FROM INVESTMENTS IN SECURITIES
This income includes dividend ofBD 1,654 thousand (2005: BD 764 thousand) ~hich is cyclical in nature.
8