First Energy Bank announces record net profits of US$ 10 million
First Energy Bank (FEB) has today announced a net income of US$ 4.0 million for the third quarter of 2010, a significant improvement over last year’s measure of US$ 0.9 million for the same period. FEB also achieved a net profit of US$ 10 million for the first nine months of 2010, marking a 55% increase over the US$ 6.5 million net profit the Bank achieved during the same period in 2009. Additionally, FEB recorded a 23% increase in Gross income amounting to US$ 28.2 million in 2010, as compared to 2009’s Gross income of US$ 22.9 million for the same period.
Commenting on the results, Hamad Rashed Al Neaimi, Vice-Chairman - First Energy Bank, said, “I am pleased to say that the results we at First Energy Bank have achieved so far in 2010 are well within our projections and expectations for the Bank. We have seen a marked improvement in almost every area of operations, and believe that we will continue to witness growth well into 2011 and beyond.”
FEB maintains a strong position within the market, mainly due to the financial stability it has exhibited over the course of the past two years. Total assets rose in 2010 to US$ 1,215.3 million and consisted of placements with banks and financial institutions (47%), financing receivables (20%), equity investments (18%) and sukuks (9%). The bank also maintained 56% liquid assets, and a capital adequacy ratio of 73.4%.
Commenting on the way forward, Mr. Mohamed Ghanem, Deputy CEO of First Energy Bank, said: “Our overall objective is to continue being an industry leader and enter into top quality investment opportunities while at the same time growing access to the global energy sector. This is further underpinned by a very solid investor base and a wealth of confidence in the diversified portfolio that we have always pursued. I do not doubt that we will continue to move from strength to strength throughout the rest of this year, and beyond.”
Of note, in the third quarter of 2010 FEB witnessed the successful floating of the second “Friede & Goldman Super M2” jackup rig. MENAdrill, FEB’s inaugural project specializing in the offshore drilling industry, is now working with Maritime Industrial Services Co Ltd Inc (MIS) Sharjah to prepare the two rigs for operations, both of which are in the commissioning phase.
“FEB remains well placed within the regional marketplace, and given our strong financials for the first nine months of 2010, we are ready to take advantage of the numerous opportunities that continue to present themselves, ensuring a strong and steady return for our investors, and an ever more diversified portfolio for the Bank,” concluded H.E Al Neaimi.