BBK Annual Report 2011

Management Review continuedCredit Management performs an independent, and essential,risk management role for the Bank on both the credit portfolioand the investment portfolio. Their credit review role ensures thatthe Bank maintains a prudent and balanced approach to risk.Their credit administration role ensures that the Bank makes itslending and investment decisions based on all required informationand in full compliance with relevant Credit Risk Policies andProcedures through reliable credit monitoring and comprehensivemanagement information systems. During 2011 a number ofenhancements were made to the Bank’s credit and managementinformation systems to ensure robust credit control and meaningfulreporting to support lending and investment decisions.The Internal Control Unit’s (ICU) main role is to plan, monitorand ensure that adequate internal control systems are in placein various departments and the assets of the Bank are safeguarded. In this respect, ICU has well designed and adequateinternal control process and procedures (ICU manual) to ensurethat the Bank’s business activities and associated risks are wellmanaged. These systems and control measures are being reviewedon a annual basis and / or whenever deemed necessary.The Operations Division has supported a number of strategicand compliance projects such as Image based clearing systemknown as Bahrain Cheque Truncation System which is schedule togo live in 2012. The IBAN project (compliance project) which hasbeen planned by CBB for rollout in Kingdom of Bahrain in 2012as part of 2030 vision statement in under progress. The stresstestingof the Bank’s business continuity plan was another majorachievement for the division to ensure the Bank’s readiness.Conclusion2011 was a year which saw a number of events both locallyand internationally which nobody could have predicted. It hasnot been an easy year for business but the fact that BBK wasable to produce a very respectable financial performance bearstestament to the solid foundations on which the Bank is builtand the excellence of the people that work for us. It is pleasingalso that we remain on track to deliver on the key objectivesthat we set for the Bank in the 2010-2012 Strategic Plan.Despite prevailing uncertainty in world markets and the localdifficulties that we have seen we nevertheless look to the futurewith optimism. We remain hopeful that 2012 will be a better yearfor businesses everywhere and that economic growth will recommence,bringing with it new business opportunities for BBK.In closing, it is my pleasure to extend the BBK leadership team’ssincere appreciation to our Board of Directors for their ongoingsupport and valuable guidance, to the Central Bank of Bahrain,the Central Bank of Kuwait, the Reserve Bank of India, BahrainBourse, our loyal customers and finally to all our dedicatedemployees who worked so hard, individually and collectively,to deliver a level of financial performance and support for thelocal community in 2011 of which we can all be proud.Abdulkarim Ahmed BucheeryChief ExecutiveThe Operations Division has played a significant role inmigrating clients to the newly launched cash managementplatform, the division has also upgraded two of its criticalapplications – Trade Finance and Treasury Back Office Systems.to cater for current and future business requirements.Our communityAt BBK we are justifiably proud of our long tradition of providingsupport to a wide range of humanitarian, educational, cultural, socialand health initiatives in the communities in which we operate. Asin previous years in 2011 a considerable number of not-for-profitorganisations received financial support from the Bank.The Bank’s biggest financial commitment to the community wasto support a new health centre in Hidd. This was opened by thePrime Minister, His Royal Highness Prince Khalifa Bin Salman AlKhalifa, in October 2011. BBK has donated BD 4 million to build,furnish and equip this health centre, now the largest in Bahrain.BBK Annual Report 201126We have also supported “Iqrah 2”, a childrens library in Malkeya,established by Sh. Ebrahim bin Mohammed Al Khalifa Centrefor Culture and Research. We are maintaining our supportto the Crown Prince’s International Scholarship Programme(CPISP) as a Platinum Sponsor and have pledged to assist withthe restoration of the old Al Khalifiyah library in Muharraq.