BMB reaches another milestone in its journey

18/03/2013 09:14 AST

Bahrain Middle East Bank (B.S.C) today announced the full repayment of a US$ 13.0 million debt obligation - inclusive of interest of US$ 1.4 million - as originally obtained by the Bank during 2003/2004 and later rescheduled by the present Management as part of its restructuring process in 2010/2011. The repayment takes total aggregate creditor obligations honored - post restructuring - to a staggering US$ 43.0 million.

Commenting on the repayment, the Chief Executive Officer and Member of the Board of Directors of BMB - Mr. Akbar Habib stated that:

We are very pleased to have been able to successfully honor all creditor obligations, including those deemed complete irrecoverable despite the many challenges, including - amongst other, a difficult market environment that has witnessed a global financial meltdown, an European debt crises and unprecedented market volatility that followed. With all prior period residuals now in effect neutralized and come to a close, this marks the successful conclusion to phase I of the Bank?s restructuring process - forming an integral part of its "five year? strategic plan.

The restructuring process that started in 2009 has led the Bank into a territory previously "unchartered? in its three decade old history with a model now multi-dimensional, diverse and primarily in-house driven, with financial obligations currently standing at an "all-time low? and approximately 90% lesser since the commencement of restructuring, and cost efficiencies at an "all-time high?, "50% lesser? on a year on year basis relative to the pre-restructuring period with a combined US$ 20.0 million cumulative expense savings realized since. In addition, in the four year period ended, the Bank has also successfully distributed realized proceeds of US$ 20.7 million to its co-investors. Reflective of all the afore said, and other tangible qualitative improvements effected including those from an internal control and risk perspective, Fitch recently revised the Bank?s outlook to "Positive" - thus putting it at its "highest ever? in its history.

We thank all those who placed their trust and confidence in our efforts and relentless pursuit, due to which; the benefits are now self-evident and reaped by all concerned.

The Bank at present is well positioned to scale new heights, and depending on the resources available which would have a direct impact on the depth and breadth of its growth, is well geared to realize its true potential"

For further information please refer to the Bank?s web site at www.bmb.com.bh.

Press Release