IslamicFinance.de

Bahrain Islamic Bank is seeking to sell about 82m dinars (£166m) of unproductive assets such as land and shares as part of a five-year plan to boost growth. The lender sold 14m dinars-worth of these assets in the first half and plans the sale of a similar amount in the remainder of the year. S&P Global Ratings downgraded Bahrain in February because its vulnerability to slumping oil prices has increased since 2009. Fitch Ratings expects Bahrain’s general government debt to rise to almost 80% of GDP this year, from 62% in 2015. According to CEO Hassan Jarrar, Bahrain Islamic Bank plans to boost revenue by 20 to 25% annually, achieve a return on equity of 15% to 16% and cut its cost-to-income ratio to mid-40% from 60% over two years.