BMI Bank (BMI), the Bahrain based associate of BankMuscat the largest financial services provider in Oman, today announced its preliminary financial results for the year ended 31 December 2009. The results are subject to the approval of the Board of Directors of the Bank in a meeting scheduled for 7th February 2010. Following its initial announcement in June 2009 of exposures to certain troubled Saudi conglomerates and subsequent confirmation in October 2009 that the bank intended to prudently impair troubled assets, BMI has fully impaired these exposures and has conservatively provisioned the corporate book. The preliminary results for the fourth quarter of 2009 is a profit pre provisions and one-off costs of BD 1.1 million, a profit pre provision of BD 0.6 million and a loss post provision of BD 12.2 million. The results for the year are a profit pre provision of BD 4.5 million and a loss post provision of BD 16.8 million.

Commenting on the Bank’s performance, Andrew Bainbridge, Chief Executive Officer of BMI said:

“I am pleased with the very prudent provisioning we have raised on our corporate portfolio which allows us to move into 2010 with a stronger focus on continuing the growth and transformation of our business. Our Capital Adequacy Ratio is one of the strongest in the Kingdom at over 22%, whilst our liquidity is excellent, our customer base has increased by over 25% in 2009 and we continue to seek growth both organically and, where the opportunity arises, inorganically.

2009 was a year of growth and consolidation for BMI. We reduced our cross border exposure during 2009 whilst growing within Bahrain. Our operating profit pre-provisions reflects better performance across our operations in Bahrain, Qatar and the Seychelles. Our offshore business in the Seychelles (BMI Offshore Bank) and our international operations in Qatar turned profitable during the first half of the year while our associate in Kenya (Gulf African Bank) moved into profit during the last quarter of 2009 reflecting a diversified source of earnings for the bank in addition to a growing core business in Bahrain.

Our business is well positioned for cautious yet steady growth in 2010. We will continue to work with BankMuscat to explore and deliver synergies from operating as part of a wider group. We will focus on our three core pillars of customer service, control and infrastructure to build a stronger customer-focused business. I take this opportunity to thank the Central Bank of Bahrain, our shareholders and customers for their confidence in our capabilities and our staff for their continued commitment and support.”

BMI will release the final results along with a complete set of financial statements for the period ended 31st December 2009 after the necessary approval by the Board of Directors scheduled for 7th February 2010.