ALUBAF  Arab International Bank recorded a net profit of $ 26 million (BD 9.8m) for the year 2011 , signifying a growth rate of  69% compared to 2010. During  the fourth quarter  of 2011, ALUBAF achieved a net profit of $ 6.7 m,  almost in line with the third quarter performance. 

The Bank made significant progress  and achieved  good financial performance despite challenging times in 2011. Significant increase was in interest income , which rose by 73% over the previous  year. Fee and commission income rose by 21%.  Substantial savings were made on operating expenses  and  the cost to income ratio reduced to a modest 18% from 27% in 2010.       

The Board of Directors of ALUBAF recommended a cash dividend  of  10%  for 2011, that is,  $ 20 m,  which is subject to regulatory and shareholders’ approval .ALUBAF’s major shareholder Libyan  Foreign Bank was imposed with UN economic  sanctions in 2011, which was lifted in December. 

However, the sanctions did not affect  and no restrictions were applied to ALUBAF , being a Central Bank of Bahrain (CBB) licensee. 

“The Bank has made a significant stride towards  progress and has shown  encouraging results with year on year increase in operating income and net profit figures, “said Alubaf general manager Ahmed Rajab. The Bank’s  capital adequacy ratio and liquidity ratio  are strong  at 45% and 93% respectively, well above industry norms. “ 

Mr. Rajab, attributes this robust growth rate to right alignment of  capital to assets ,  prudent risk management  and strengthening  of operational  efficiency.   He  is highly optimistic that 2012 will be another  promising  year  for the Bank. The Bank has infused additional capital of $ 50 m  in January  in line with its business plan. With this the paid up share capital is $ 250 m. 

ALUBAF’s  office premises at  Seef are  in its final phase of completion and will be  functional  in the second quarter .