Shamil Bank posts record net income of U.S.$ 50.2 million during 3rd quarter of 2006

Published October 29th, 2006 - 08:10 GMT

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Shamil Bank announced a record net income of US$ 50.2 million for the nine months ended 30 September 2006, reflecting an increase of 96 per cent over US$ 25.60 million earned in the same period last year. As a result, Earnings Per Share increased to US Cents 22 from US Cents 11 for the same period last year. Annualized Return on Equity also increased from 11.3 per cent to 19.7 per cent. The increase in net income is attributed to substantial growth in earnings from investment activities and income from funds under management.

The Bank's consolidated total assets increased by US$ 206 million representing 13.5 per cent, to US$ 1.73 billion as at 30 September 2006 from US$ 1.52 billion as at 31 December 2005. On the liability side, unrestricted investment accounts also increased by US$ 197.2 million representing 31 per cent, from US$ 639.6 million at the end of December 2005 to US $ 836.8 million at 30 September 2006, reflecting customers’ increased confidence in Shamil Bank’s products and services.

Commenting on the Bank’s strong performance during the first nine month period of 2006, Mr. Mohamed Hussain, Chief Executive of Shamil Bank, said: “This year is a milestone year for the Bank and I am delighted with the successes achieved so far.

The excellent financial performance so far has set the foundation for the next phase of growth and development of Shamil Bank. The Bank also has high quality investments, private, commercial and retail banking businesses lined up.

We are also confident that Shamil Bank’s own strong performance will continue to be supported by equally robust performance of its associates and subsidiaries: Faysal Bank Limited., Pakistan, Meezan Bank Limited, Pakistan and Faisal Private Bank, Switzerland, thereby adding considerable value for shareholders, investors and customers alike.

The strong performance is reflective of the Bank’s success in implementing its 3-year strategic plan in all areas of our businesses, comprising Retail Banking, Corporate Banking, Investment Banking and Private Banking”, said Mr. Hussain.

Continuing on the results, Mr. Hussain said: “further growth in business is expected in the future. We will also leverage the success of our products and enhanced services to help acquire new customers and strengthen relationships with our existing customers. We are now in a better position to invest in areas of growth and at the same time capitalize on our resources and continue to improve our operating efficiency. Shamil Bank continues to successfully discharge its economic and social responsibilities as a leading local Islamic financial institution. We are proud of our workforce that always makes achievement of such good results possible. With the blessing of Allah, our strategy for the remaining part of the year is to enhance our position in the local market and leverage our retail franchise.”

In August 2006, Ithmaar Bank acquired a 60% shareholding in Shamil Bank. Ithmaar Bank is a Bahrain-based full service Islamic investment bank with a paid-up capital of US$360 million. The bank is listed on the Bahrain Stock Exchange and has operations spanning the Middle East, North Africa, Asia and Europe; and holds significant investments in the banking and financial services sector in different markets.

Shamil Bank is a leading Islamic commercial and investment bank incorporated in the Kingdom of Bahrain. The Bank has grown steadily since 1982 to become a leading Islamic fainacial institution with a shareholding equity of US$ 342.4 million as at 30 September 2006.

The Bank provides a diverse range of products and services that cater to the financing and investment needs of individuals and instuitutions. It conducts its business in compliance with the principles of the Islamic Sharia’a.

Shamil Bank is a subsidiary of Ithmaar Bank B.S.C., a full service Islamic investment bank with a paid-up capital of US$360 million. Ithmaar Bank has a 60% shareholding in Shamil Bank.

Shamil Bank operates a network of local branches and maintains a presence in overseas markets through its subsidiary, associated and affiliated companies. Both Shamil Bank and it majority shareholder Ithmaar Bank are listed on the Bahrain Stock Exchange.