Futurebank announces BD9.1 million in net profits for 2010

Press release

Published March 2nd, 2011 - 11:22 GMT

Gholam Souri, Chief Executive Officer and Managing Director at Futurebank

Bahrain-based Futurebank has announced a net profit of BD9.1 million for the year ended 31 December 2010 marking an increase of 10.4% as compared to 2009 (2009 – BD8.2 million). The bank also reported that net profit for Q4 2010 stood at BD 0.79 million.

Mr. Gholam Souri, Chief Executive Officer and Managing Director who took to the helm in Q4 2010 explained, “The bank’s profit based on performance for the fourth quarter was actually BD 2.59 mm. However to be in line with our strategy to consistently maintain a strong balance sheet, the bank has decided to provide for a Goodwill Impairment to the extent of BD 1.02 million, besides the other extra provisioning on a prudential basis of BD 0.78 million.

As of 31 December 2010, the bank’s total assets stood at BD524.3 million (2009 – BD547.5 million). The bank registered a healthy growth in its Loan & Advances portfolio by 28.1% from BD 118.4 million to BD 151.7 million, with customer deposits growing by 21.1% from BD 108.7 million to BD 131.6 million during 2010.

“I am delighted with our 2010 financial results. A testament to our strong balance sheet and prudent investment practices, a profit of BD9.1 million and a Capital adequacy ratio of 25.7% underscores our stability in an unpredictable financial landscape,” added Mr. Souri.“Over the next year, in line with our current strategy, I hope to continue providing added-value to our clients and maintain Futurebank’s position as a stalwart figure in the Bahraini banking community.”

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.