Bahrain’s First Islamic Investment Bank recently announced that it earned a $32.7 million net income for 2001, a 60 percent increase over the $20.5 million achieved in 2000. The Bank’s board of directors recommended a dividend payment of $16.9 million, representing a return of 15 percent on the Bank's paid-in capital, confirmed a bank press release.
“We have been able to increase deal flow significantly in our two main lines of business, which is reflected in the strong results we achieved in 2001. Our aim in 2002 is to expand our real estate line of business into Europe and to continue to manage our direct investments with the aim of achieving profitable exits,” said the Bank’s Chief Executive Officer Atif Abdulmalik.
The Bank generated a return on average total equity of 23.9 percent and return on average assets of 10.8 percent, with total equity reaching $145.2 million, after proposed dividend, a 12.9 percent increase over 2000.
Over the course of the year, First Islamic completed three new direct investment transactions with a total value in excess of $438 million. In June, it arranged the purchase of a 100 percent ownership stake in Medifax EDI, a provider of information processing services to the health care industry in the United States, for a total transaction value of $123.1 million.
In August, the Bank arranged the acquisition of a 61 percent ownership interest in Cirrus Industries, a manufacturer of single engine, general aviation aircraft, for a total transaction value in excess of $142 million.
In addition, the Bank combined Yakima Products, a US manufacturer of multi-sport racks and WaterMark Paddlesports, a kayak and paddle sport accessory producer, for a total transaction value of $173.1 million. The two companies are held through Destination Outdoors.
The Bank's real estate line of business demonstrated a strong growth in 2001, with the completion of three real estate joint ventures with ProLogis Trust, a provider of integrated distribution facilities and services, for an aggregate transaction value of $603.5 million.
Also in 2001, a three-year $100 million revolving Murabaha Facility was arranged for First Islamic by regional banks. This facility will enable First Islamic to expand the scope of its operations and support further direct investment and real estate acquisitions.
First Islamic Bank provides Shari'ah compliant investment banking solutions to institutional and individual investors internationally. The Bank is a Bahrain-based investment institution with a paid-in share capital of $112.5 million and over 80 shareholders. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
