First Islamic records 10 percent increase in net profit for 2002
First Islamic Investment Bank generated a net income of $36 million in 2002, a 10.1 percent increase over the $32.7 million achieved in 2001. The Board of Directors has recommended a dividend payment of $16.9 million, representing a return of 15 percent on the Bank's paid-in capital.
The Bank generated a return on average total equity of 23.4 percent, with total equity increasing to $162.9 million, after proposed dividend. During 2002, First Islamic completed its first European real estate transaction and its first international aviation transaction while continuing to build on its US direct investment and real estate businesses.
In June 2002, First Islamic arranged the acquisition of a 90 percent ownership stake in Smart Document Solutions, a provider of medical records release of information (ROI) services in the US, for a total transaction value of approximately $100 million.
During 2002, First Islamic completed two real estate transactions in the US assisted living sector in the form of joint ventures with Sunrise Assisted Living, the oldest and largest provider of assisted living services in the US. The first transaction was completed in March 2002 for a total transaction value of $203.4 million, and the second transaction was completed in November 2002 for a total transaction value of $222.4 million.
In November 2002, the Bank completed its first real estate transaction in Europe when it entered into a joint venture with Lend Lease Real Estate Investments, a part of the Lend Lease Group. The joint venture acquired lease interests in a portfolio of industrial distribution facilities located throughout Germany.
In October 2002, First Islamic entered into a joint venture with Montrose & Company International, an affiliate of Bank of America. The joint venture is acquiring lease interests in 21 aircraft leased to British Airways, Air Canada and Brit Air, for a total transaction value of $149.6 million.
First Islamic provides Shari'ah compliant investment opportunities to institutional and individual investors internationally. First Islamic Investment Bank is a Bahrain-based investment bank with a paid-in share capital of $112.5 million and over 80 shareholders. — (menareport.com)
© 2003 Mena Report (www.menareport.com)