IslamicFinance.de

BMI Bank, a subsidiary of Bahrain's Al Salam Bank (ASBB), has announced that Jamal Al-Hazeem, director and CEO of the bank had stepped down. Al-Hazeem who took on the helm of BMI Bank in 2010 as CEO, cited personal reasons for his resignation and called the decision to step down as CEO of the Bank as "mutual and amicable". He will continue to stay on as a director on the board at BMI Bank which is currently finalising the operational aspects of its merger with Al Salam Bank as it converts its business to a Sharia compliant one.

Tamkeen and BMI Bank have announced an extension of their partnership providing Sharia-compliant financing to local enterprises. This marks the fourth contribution of BD10 million by BMI Bank, expanding its portfolio to a total of BD40m whilst the total value of the scheme is BD302m. Initially launched in November 2010, the joint scheme offers small and medium enterprises (SMEs) including startups, a suite of financial products at a competitive cost. Enterprises are eligible to receive financing ranging from BD10,000 to BD500,000. All corporations with valid commercial registrations in the kingdom can apply to benefit from the scheme, which also features repayment options of up to 10 years with a grace period up to two years according to finance procedures.

Al Salam Bank-Bahrain (ASBB) shareholders approved by majority the Board of Directors’ recommendation to merge the bank with BMI Bahrain through exchange of ASBB shares. The Chairperson H.H. Shaikha Hessa bint Khalifa Al Khalifa pointed out that ASBB’s strategy is to grow organically and through mergers and acquisitions, and consistent with this strategy the Board of Directors had been continuously on the lookout for suitable commercial banking targets to acquire and integrate. H.H Shaikha Hessa mentioned that upon merger the Group will have total assets of circa BHD 1.8 billion, financing facility of circa BHD 1.2 billion, equity of over BHD 285 million and total customer deposits in excess of BHD 1.2 billion.

Moody's Investors Service has today taken actions on National Bank of Bahrain, BBK, BMI Bank and Bahrain Islamic Bank. The ratings agency has confirmed that National Bank of Bahrain (NBB) and BBK received Baa2/Prime-2 deposit and senior debt ratings, with a negative outlook. Regarding BMI Bank, Moody's has extended the review for downgrade on the bank's Ba1 deposit rating, and affirmed the bank's standalone E+ bank financial strength rating (BFSR) with a stable outlook, equivalent to a baseline credit assessment of b1. In addition to these actions, Moody's has also extended the review for downgrade on all the ratings of Bahrain Islamic Bank (BIsB) to reflect its extensive capital needs and ongoing uncertainties around the recapitalisation of the bank.

Bahrain's Al Salam Bank has agreed to acquire fellow Bahraini lender BMI Bank , an affiliate of Oman's Bank Muscat , through a share-swap deal. Al Salam will exchange 11 of its shares for each BMI Bank share to create the kingdom's fourth-largest commercial bank. The tie-up is still subject to shareholder approval, with meetings to vote on assent due to be held in either September or October. Shares in Al Salam were 5.9 percent higher at 0726 GMT in muted trading. The tie-up will create a bank with assets worth BD1.79bn ($4.75bn), according to second-quarter results from both institutions.

Moody's Investors Service said it has placed four Bahraini banks - National Bank of Bahrain (NBB), BBK, BMI Bank and Bahrain Islamic Bank (BIsB) - on review for possible downgrade of its deposit, issuer and senior debt ratings. As part of the same rating action, Moody's has also placed on review for downgrade the standalone bank financial strength rating (BFSR) of BIsB. Moody's decision comes following the potential weakening in the sovereign's capacity to provide support to the banks, as signaled by the agency's decision to place the Baa1 Bahraini government bond rating on review for possible downgrade. The sovereign review was prompted by the fiscal implications of Bahrain's high and rising break-even oil price; the outlook for lower trend economic growth in the country over the medium term and the impact of a low-growth, high government expenditure and weaker oil price scenario on Bahrain's long-term debt sustainability.

BMI Bank , the Bahrain based associate of Bank Muscat , has announced that they have agreed in principle in favour of a merger with Al Salam Bank, an Islamic Bank incorporated in Bahrain. The completion of the transaction, including final share-swap ratio, is subject to satisfactory due-diligence as well as regulatory and shareholder approvals, Bank Muscat said in posting on the website of the Muscat Securities Market. Bank Muscat has a shareholding of 49 per cent in BMI bank.

Bahrain’s BMI Bank has signed a strategic agreement with regional insurer Medgulf Allianz Takaful.
This agreement will allow the bank to present customers a suite of life and non-life Takaful products through its branch network.

BMI Bank has paid out a three-year Islamic term loan worth $93.7m on its programmed due date.
Jamal Al-Hazeem, the Chief Executive Officer of BMI, stated that the repayment of the facility on time, without having to refinance or rollover, is demonstrated through continuing priority on maintaining a healthy liquidity position in order to fulfill our commitments to customers.

National Bank of Bahrain B.S.C. : A3 long-term local and foreign-currency deposit ratings and C- BFSR.
BMI Bank B.S.C. : Baa3/Prime-3 local and foreign-currency deposit ratings and D BFSR.
BBK B.S.C. : A3 long-term local and foreign-currency deposit ratings and C- BFSR.
Moody's decision to place the ratings of NBB, BBK and BMI on review for possible downgrade follows a similar action taken by the rating agency on 23 February, when it placed the sovereign rating of the Bahraini government on review for possible downgrade.

BMI Bank and Tamkeen have launched a new Sharia-compliant financing scheme for enterprises within the local private sector to bolster the segment within the country.
As part of the agreement, Tamkeen will guarantee 50% of the total financing amount as well as subsidize 50% of the profit payments due from customers.
The scheme offers a range of trade finance products such as letters of credit and guarantee, Murabaha financing which covers working capital, auto and equipment financing.

Bahrain-based Sakana Holistic Housing Solutions and BMI Bank (BMI), an associate of Bank Muscat, signed a Commodity Murabaha Islamic Financing facility whereby BMI Bank provided BD 3 Million funding for 1 year to Sakana towards working capital requirements.

This agreement is in continuation of a 2 year relationship which both organizations with Islamic financing facilities amounting to BD 8.2 Million extended by BMI to Sakana which were repaid on due date.