Futurebank announces BD 3.43 million in profits for Q1 2011

Press release

Published May 12th, 2011 - 07:11 GMT

Gholam Souri, Futurebank CEO and Managing Director

Bahrain-based Futurebank has announced a net profit of BD3.43million for the First Quarter 2011 marking an increase of 30.2% as compared to the same period last year (2010 – BD2.63 million).

As of 31 March2011, the bank’s total Assets stood at BD561.7 million a significant increase of BD37.4 million as compared year ended 2010. This is in part due to the bank registering a healthy growth in its Loan & Advances portfolio by 16.6% to BD 176.9 million from BD151.7 million at the start of the year. The bank’s total Liabilities also saw an increase of 7.1 %, standing at BD470.1 million at the end of the First Quarter 2011 (31 December 2010 – BD436.12 million)as compared to year ended 31 December 2010.

Mr Gholam Souri, Chief Executive Officer and Managing Director said, “I am very pleased with the bank’s performance in Q1 2011. We have refocused our efforts on local and regional business. A number of our business initiatives, which we started in 2010, have now been realised during the first quarter. Considering the various challenges faced in the financial market we have continued to focus ourselves on quality lending.Futurebank’s profitability, this early in the year, underscores our resilience and our firm place within Bahrain’s banking industry.”

“Futurebank has successfully implemented a new state-of-the-art core banking system from 1^st January 2011 onwards. The new system enables us to offer a variety of products in consumer and corporate lending, and provides us with an upgraded platform from which to provide value-addedservices to our loyal clients,” concluded Mr Souri.

Background Information

Future Bank

The shareholders agreed to purchase the independently valued operations of Bank Melli and Bank Saderat in Bahrain. These operations were successfully integrated in Bahrain by end January 2005. Additionally, the bank has been granted the first domestic currency full commercial banking license issued to a foreign bank in Kish Island, Iran.

The bank is structured according to a classic management structure. Two Deputy CEOs report to the CEO with responsibility respectively for the client-facing and operational sides of the bank. They are in turn supported by Department Heads of Treasury, Corporate Banking, Trade Finance, IT, Finance and Admin, Risk and Compliance. A separate Audit Department reports directly to the banks Audit Committee.

The banks main business focus is wholesale investment banking and it targets the financial flows between Iran and the GCC countries. Its target clients are the top 30 corporate listed on the Tehran Stock Exchange (TSE)as well as large and mid size corporate, institutional and high net worth investors in the GCC. The Bank seeks to channel debt and equity capital from the GCC into Iran in either conventional or sharia compliant structures. The Bank expects to develop an equity issuance capability in Iran in 2006 and it has recently received official approval to launch what could be the first Iran country fund allowing foreign investors to invest in shares quoted on the TSE. The bank currently has 3 branches and an Treasury Unit in Bahrain. The bank is registered in Bahrain and regulated by the Central Bank of Bahrain.