The Manama-based offshore TAIB Bank has announced a net profit of $6.16 million for 1993, 51 per cent higher than in 1992. The bank was formerly known as Trans Arabian Investment Bank (TAIB).
The bank attributes the increase to the expansion of its investment banking activities, which raised non-interest income to 40 per cent of the $17.5 million gross revenues in 1993, compared with 32 per cent in 1992. TAIB says treasury activities accounted for 66 per cent of its net interest income, which increased by 31 per cent to $10.5 million. Non-interest income rose by 88 per cent to $6.9 million.
Total assets increased by 8 per cent to $355.8 million, largely due to the 13 per cent increase in securities and investments to $150.6 million. Loans and advances fell by 1.5 per cent to $73.2 million. Customer deposits rose 23 per cent to $55.4 million. Provisions for loan losses fell by 10 per cent to $1.5 million. A new provision of $1.8 million was introduced for investments.
The bank is to register on the Bahrain stock exchange soon. It will be the third entity after Arab Banking Corporation (ABC) and Bahrain International Bank (BIB) in which non-GCC nationals will be allowed to purchase shares. Faysal Islamic Bank will also join the exchange soon (MEED 11:2:94). TAIB has also set up TAIB Securities, which offers full brokerage services on the exchange.
At the end of 1993, TAIB became one of the few foreign banks to be approved as a foreign institutional investor by the Securities & Exchange Board of India to participate in primary and secondary equity and debt markets in India. TAIB says it is pursuing more business with Indian companies, both in an advisory capacity and in trade finance.
Corporate banking activities at TAIB’s Turkish subsidiary, Yatirim Bank, earned 61 per cent of TAIB’s non-interest income. The Istanbul-based bank plans to open a branch in Ankara in 1994, and is launching a mutual fund soon. Through Yatirim, TAIB is monitoring trade finance opportunities with the former Soviet Union.