BMB Investment Bank recorded profits of $6.3 million in the first half of 2002 compared to a loss of $14.1 million in the first half of 2001. Results show a third consecutive quarter of return to profitability for the Bank, stated a press release.
Operating profit reached $14.2 million as compared to a loss of $5.5 million in the first six months of 2001. Investment activity produced a profit of $11.8 million as compared to a loss of $5.2 million in the corresponding prior year period.
Foreign exchange activity produced a profit of $0.5 million as compared to a loss of $2.2 million in the corresponding prior year period. Profits from capital markets activities amounted to $1.3 million as compared to a loss of $2.2 million in the first six months of 2001. Provisions for bonds rose to $2.9 million as compared to $1.3 million in the first six months of 200.
BMB was established in 1982 as a Bahrain-incorporated offshore banking unit. BMB focuses on investment banking activities and developing structured products for distribution in the Gulf. Management is also developing asset management activities.
Following the heavy loss in 2000, 2001 was a year of restructuring with the bank scaling back its trading risk exposures, enhancing risk management discipline, and adopting an aggressive cost management program. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
