Khaleeji Commercial Bank made a profit of BD3.1m ($8.2m) in 2009, an 89 per cent fall compared to the BD27.3m profit in the previous year.

The bank reported a BD5.2m loss in the fourth quarter. The bank attributed the loss to the difficult regional market and high levels of provisioning for bad debts. Net provisions had reached BD9.3m at the end of the year.

Income from commercial banking activities grew by 41.4 per cent during the year compared to 2008. Total assets grew by 1.9 per cent year-on-year to BD473.6m by the end of 2009 and the bank had a capital adequacy ratio of 34 per cent.

“The bank continued to execute a business strategy based on a hybrid business model leveraging its investment banking capabilities while growing its commercial banking business,” said Fuad al-Omar, chairman of the bank in a statement.

“As we look to 2010, we foresee a challenging year ahead, although there are opportunities for growing the bank’s business, especially in the retail banking segment.”