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Chief executive officer’s report STRENGTHENING THE BUSINESS PROPOSITION Our transformation began in earnest at the start of 2011 with the roll out of a revised prize structure for our flagship retail product, the ‘Ayadi Savings Scheme’ offering customers the opportunity to win USD 1.66 million in prize money as well as uniquely positioning the product as the only such savings scheme in Bahrain to offer the biggest grand prizes during all three Eid’s including Bahrain’s National Day. This was followed by a campaign announcing our refreshed brand identity under a new tag line, “better, together” to strengthen our position as an entirely customer and customer-service driven bank. We also opened three new branches, a Small and Medium Enterprises (SME) focused branch at Hamala as well as one at Airport Avenue in Muharraq and one on the 16th floor of the Bahrain World Trade Center to cater to our high networth clients. In addition to growing our branch network to ten during the year, we also strengthened our ATM network to thirty through the launch of new ATMs at strategic locations within the country. Further to the launch of our state-of-the-art core banking system in 2010, we launched two new payment channels for our credit card customers; online in partnership with Benefit, Bahrain’s national electronic network for financial transactions and one through our newly introduced cash and cheque deposit ATMs installed at all major branches of the Bank. In addition to conducting credit card related transactions, our customers can now use the same ATMs to deposit real-time cash into their various accounts with the Bank, saving valuable time without the need to be committed to the Bank’s working hours. Similar to regular ATMs, a valid receipt reflecting details of the transaction is provided once the customer either deposits cash or pays their credit card bill. During the year we also launched several reward based promotions on our bouquet of retail products to engage our customers including one on our credit cards as well as one on our personal loans that was rebranded under the name ‘Salaf’. Customers who shopped with their BMI Bank credit cards were rewarded with an opportunity to win four fabulous all-paid vacation packages including a cruise and a European holiday as well as BD 20,000 cash whilst customers who took a personal loan during the special promotion period were eligible to win back a year’s installment free in addition to benefiting from a lower interest rate of 6.5% p.a. Our successful partnership with Tamkeen was extended in 2011 with a fresh top-up commitment of BD 10 million to their Private sector support finance scheme portfolio. We are proud to partner with Tamkeen in this scheme and look forward to building our relationship through the introduction of similar programs and schemes that will develop increased productivity and improved efficiency in businesses within Bahrain. Our commitment to transparency and quality of service is recognized by our customers who realize that in banking, ‘better, together’, as our credo suggests, is the most profitable way forward. Through these promotions and product innovations, we believe, our Bank has managed to create a better value proposition for customers that both rewards them for their loyalty and offers them a competitive product. STRATEGIC PARTNERSHIPS DURING 2011 Being a responsible local Bank, we believe it is our responsibility to play a leading role in assisting our loyal customers who place a lot of faith in us, better manage their finances. With this in mind, we signed several strategic partnerships with leading organizations within Bahrain aimed at providing our customers with unique opportunities that complement the bouquet of products and services that we offer. Amongst those that we partnered during 2011 were the following: • Bahrain Financial Exchange (BFX), the first multi-asset exchange in the Middle East and North Africa (MENA) region as a Trading and Clearing member of the BFX. • Kanoo Consulting Services, a division of Yusuf bin Ahmed Kanoo, whereby our Bank will act as the exclusive [20] BMI Bank Annual Report 2011
Chief executive officer’s report financial advisor to support the company’s growing business development initiatives. • International Hospital of Bahrain (IHB) to provide our customers with special value added services every time they use their BMI Bank credit or debit card to pay for services at the IHB. • Tamkeen’s Information and Communication Technology (ICT) finance scheme to enable the Bahraini private sector enterprises especially the small and medium enterprises (SMEs) to achieve greater competitiveness and operational efficiency through adoption of the latest ICT solutions. • A further BD 10 million extension to Tamkeen’s Shariacompliant financing scheme for enterprises within the local private sector to fulfill their financial needs at a competitive cost resulting in a total portfolio of BD 20 million. • Sinnad to manage our ATM network as well as issue our chip-enabled debit and Diners club credit cards, as well as implement a comprehensive system to monitor and manage the risk associated with the cards electronic transactions. • Eskan Bank, the leader in housing finance across Bahrain to bring flexible financial solutions to Bahrainis through the introduction of our personal loan along with the option of a credit card to customers of Eskan Bank’s Housing Loan scheme. • Medgulf Allianz Takaful, a leading regional insurer (a newly formed joint partnership between Allianz Group and Medgulf B.S.C. (c)) to offer our customers a complete suite of life and non-life insurance products from Medgulf Allianz Takaful through our extended branch network within the Kingdom. ISSUANCE OF LONG TERM DEBT In early 2011, the Bank signed a three-year syndicated term-loan facility for USD 80 million. The credit facility was arranged by BankMuscat with Bank of Bahrain and Kuwait (BBK), Standard Chartered Bank and Arab Banking Corporation as participants. The syndication received strong support from the banking market with an oversubscription in the facility amount and as a result the total amount was increased from the initial USD 75 million to USD 80 million. This successful transaction reiterates both our strong reputation as well as Bahrain’s economic position within the financial community. BUSINESS CONTINUITY PLAN (BCP) & DISASTER RECOVERY PLAN (DRP) While BCP by its very nature takes a broad approach to dealing with the effects of a disaster, the DRP focuses on taking the necessary steps to resume normal business operations as quickly as possible and is executed immediately after the disaster occurs. Continuing with our initial work on both BCP and DRP laid during the previous year, we successfully conducted a full simulation and test of the plan in 2011. As per the test, key members of every department within the organization were relocated to an alternate site and asked to perform critical banking functionalities that would have had an adverse effect on our customer service in the event of a natural disaster. A detailed folder containing essential documents to guide staff in the event of a disaster titled ‘Battle Box’ was prepared and circulated to all department heads. In addition, a mini booklet containing a snapshot of key information from the BCP along with and contact details of all members of the crisis management team was prepared and distributed to all staff. INFORMATION SECURITY As a customer serving organization, protecting our customers' confidential information is both a business as well as an ethical and legal requirement. An information security policy defines the organization’s attitude to information whilst announcing both internally and externally that information is an asset, the property of the organization and is to be protected from unauthorized access, modification, disclosure and destruction. Having a stringent information security policy is therefore essential since it provides a framework for best practice that can be followed by all employees as well as help in ensuring risk is minimized and that any security incidents are effectively responded to. During the year we implemented an overall bank-wide information security BMI Bank Annual Report 2011 [21]
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English - BMI Bank

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