Bahrain Islamic Bank B.S.C. | ANNUAL FINANCIAL AND SUSTAINABILITY REPORT | 2023 |
Bahrain Islamic Bank B.S.C.
P.O. Box 5240, Manama
Kingdom of Bahrain
T.: +973 17 515 151
F.: +973 17 535 808
Licensed as an Islamic Retail Bank by the Central Bank of Bahrain
2
Bahrain Islamic Bank B.S.C. | ANNUAL FINANCIAL AND SUSTAINABILITY REPORT | 2023 |
His Highness | His Majesty | His Royal Highness |
Shaikh Isa bin Salman | King Hamad bin Isa | Prince Salman bin Hamad |
Al Khalifa | Al Khalifa | Al Khalifa |
Late Amir | The King of the | The Crown Prince, |
Kingdom of Bahrain | Deputy Supreme Commander | |
and Prime Minister |
3
Bahrain Islamic Bank B.S.C. | ANNUAL FINANCIAL AND SUSTAINABILITY REPORT | 2023 |
Empowering dreams through innovative and simplified financial solutions.
4
Bahrain Islamic Bank B.S.C. | ANNUAL FINANCIAL AND SUSTAINABILITY REPORT | 2023 |
5
Bahrain Islamic Bank B.S.C. | ANNUAL FINANCIAL AND SUSTAINABILITY REPORT | 2023 |
B i s B . About the Report
About the Report
The Bahrain Islamic Bank (BisB) Annual Financial and Sustainability Report (The Report or This Report) for the year 2023 highlights the Bank's financial performance and sustainability development.
In line with BisB's commitment to transparent Environmental, Social and Governance (ESG) reporting, the Bank conducted a comprehensive review of its ESG progress in 2023 to help the key stakeholders and investors to make informed decisions. To get a complete overview of BisB's performance metrics, we recommend viewing our ESG report along with our consolidated financial statements, risk and capital management disclosure, corporate governance review report, and remuneration disclosure.
2023 REPORTING SCOPE AND ORGANISATIONAL PARAMETERS
2023 was an important year for BisB. We continued to invest in new technologies to enhance our digital products and operational capabilities. Furthermore, our bank-wide approach is focused on delivering improved customer experience while ensuring ESG progress.
Reporting Boundary
The financial and sustainability information provided in this Report corresponds to the fiscal year 2023 (1st January 2023 till 31st December 2023), unless otherwise stated.
The Bank has eight branches, all operating in the Kingdom of Bahrain. Therefore, the Report's boundary is BisB's banking operation in Bahrain.
The consolidated financial statements include the results of the Bank and its wholly owned subsidiaries (together the Group). The Bank holds 100% of the share capital of Abaad Real Estate W.L.L.
National Bank of Bahrain (NBB) owns 78.81 of shares. Hence, NBB is considered as Parent of the Bank for financial reporting purposes.
Reporting Frameworks
The Report has been prepared in accordance with internationally recognised reporting standards and frameworks in order to ensure complete accountability and transparency.
This includes:
- Adhering to the International Integrated Reporting Framework (IIRF), now part of the IFRS Foundation. The framework requires complete disclosure of financial and non-financial performance to provide a holistic overview of a company's long and short-term goals and value creation.
- The consolidated financial statements have been prepared in accordance with Financial Accounting Standards (FAS) issued by the Accounting
and Auditing Organisation of Islamic Financial Institutions (AAOIFI) and applicable rules and regulations issued by the Central Bank of Bahrain (CBB). - Ensuring the sustainability content of the Report is in accordance with the Global Reporting Initiative (GRI).
- Following the 29 ESG metrics outlined by the Bahrain's National Stock Exchange (Bahrain Bourse), wherever possible. These metrics are
6
Bahrain Islamic Bank B.S.C. | ANNUAL FINANCIAL AND SUSTAINABILITY REPORT | 2023 |
"Through this Report, we aim to provide our stakeholders with insights into the financial value created by BisB, and highlight ESG targets achieved through various industry-lead initiatives and business practices.
aligned with the Sustainable Stock Exchanges (SSE) initiative.
- Adhering to the UN Sustainable Development Goals (SDG) that were developed to achieve environmental sustainability by world economies by 2030.
- Aligning BisB's ESG initiatives with the Bahrain Economic Vision 2030.
Relevant sections of the Report clearly outline the framework and international reporting standards they adhere to. Further details are included in the GRI Appendix at the end of the Report.
consolidated financial statements of BisB were audited by KPMG Fakhro, an internationally recognised audit firm. Additionally, BisB's board of directors has approved these consolidated financial statements.
Reporting Integrity
The Board of Directors ensures the integrity of this Report and confirms that the disclosed information is fairly presented, in all material aspects, and is
in accordance with the International Integrated Reporting Framework, the Financial Accounting Standards issued by AAOIFI as well as the GRI Standards.
External Assurance
As part of our commitment to transparency and accuracy, we have engaged Centre for Sustainability & Excellence, an international provider of sustainability, ESG and CSR advisory
and training solutions to conduct a limited assurance on a select number of ESG KPIs. The independent assurance statements and reports for the sustainability-related figures have been included as part of the report.
Disclaimer: Forward-Looking Statements
Forward-looking statements involve uncertainty given the many external factors that could have an impact on the environment in which the Bank is operating. BisB bears no obligation to publicly update or revise any/all forward-looking statements included in the report unless required by applicable laws and regulations.
Financial Data Accuracy
Fair presentation in all material aspects underpins BisB's financial reporting. To that end, the
7
Bahrain Islamic Bank B.S.C. | ANNUAL FINANCIAL AND SUSTAINABILITY REPORT | 2023 |
Table of
Contents
01
Who We Are 10
Bank Profile 10
Financial Highlights 16
ESG Highlights 18
Board of Directors Report 20
Board of Directors 24
Shari'a Supervisory Board Report 30
Shari'a Supervisory Board 32
Chief Executive Officer Report 34
Executive Management 38
04
Financial Capital 64
Financial Strength 66
Economic Impact 69
07
Natural Capital 92
02
Our Strategic Direction 44
Integration with NBB 46
Anticipating Risks 47
Our Approach to ESG 48
Listening to our Stakeholders 56
05
Human Capital 72
Workforce Well-being74
Diversity, Inclusion and Equal Opportunity 78
Employee Training and Development 81
03
Value Creation 60
Value Creation Model 62
06
Intellectual Capital 84
Digital Transformation and Innovation 86
Responsible Customer Relationships 89
Sustainability Through Automation 89
Data Privacy and Security 89
8
Bahrain Islamic Bank B.S.C. | ANNUAL FINANCIAL AND SUSTAINABILITY REPORT | 2023 |
08
Social and Relationship Capital 96
Community Investment 98
Responsible Sourcing 100
Financial Inclusion & Literacy 100
11
Remuneration Disclosures 128
14
Key ESG Performance Indicators 240
09
Safeguarding Value 102
Robust Governance Structure 104
Sustainability Governance 105
Compliance 106
Internal Audit 107
Risk Management 107
12
Consolidated Financial Statements 134
15
GRI & Bahrain Bourse Index 241
10
Corporate Governance Review 108
13
Risk and Capital Management 204
16
Independent Assurance Statement 248
9
Bahrain Islamic Bank B.S.C. | ANNUAL FINANCIAL AND SUSTAINABILITY REPORT | 2023 |
01 Who We Are
Bank Profile
WHO
WE
ARE
Bahrain's Leader in Digital Islamic
Financial Services.
BisB has been serving the community of the Kingdom of Bahrain since its establishment in 1979. BisB operates under an Islamic Retail Banking license authorised by the Central Bank of Bahrain (CBB) and is listed in the Bahrain Bourse. As Bahrain's first Islamic bank, and the GCC's fourth Islamic banking entity, BisB continues to play a leading role in developing the local and global Islamic banking industry as well as the Kingdom's economy.
Our success is built on robust and enduring client relationships, attributable to our customer centric approach complimented by innovative solutioning strategies.
This is supported by our dedication to maintaining robust corporate governance, significant risk management expertise, commitment to safeguarding customer assets, and investment in talent development. A customer-first approach is central to how we do business, and we strive to improve the banking experience at every touch point through improved business practices and technological innovation. By providing superior, safe and trusting financial services across the board that enables economic growth and progress, BisB has cemented its position as a trusted and innovative Shari'a-compliant Bank establishing the next era of global banking.
A Pioneer in Islamic Banking
Islamic principles guide BisB's banking approach and diverse portfolio of integrated financial solutions. To improve our services and stay at the forefront of the banking industry, we continually evolve through the continuous incorporation of innovative strategies and global best practices in line with Shari'a principles. Embracing this agile yet thoughtful approach to banking allows us to stay ahead of changes in local financial markets while maintaining our competitive edge. Our approach enables us to understand and better serve our clients, whilst anticipating their financial needs, and
10
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
Bahrain Islamic Bank BSC published this content on 15 March 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 March 2024 11:46:02 UTC.