Ithmaar Bank, a global investment bank based in Bahrain, today announced its best ever first quarter profits - US$32.9 million, a more than three-fold leap over the same period last year figure of US$9.4 million.
“We have carried through with our pledge to build on last year’s enormous success and have ridden the momentum right into the New Year. We are thrilled to report the highest ever first quarter results, thanks to the relentless efforts and commitment of the executive management of the Bank”, said Ithmaar Bank’s Chairman, Mr. Khalid Abdulla-Janahi.
This record performance for the period ended March 31, 2007 is up from the US$9.4 million net profit earned in last year’s first quarter and follows a milestone year in 2006, with yearly profits surging to US$183.8 million.
Operating profit as of 31 March 2007 surged five times to US$34.3 million, compared to US$6 million during the same period last year. Revenues came from increasingly diversified investments spread across the Middle East, Europe, and Asia, with the Bank continuing its rapid expansion strategy.
“These results are a testament to the soundness of Ithmaar Bank’s vision and plan. We have managed to elevate the bank’s status and turn it into one of the region’s most up-and-coming financial institutions. There is a buzz of excitement surrounding the Bank, which we believe will lead to great achievements, as we seek to be the benchmark international investment bank from the Middle East and, with our subsidiaries and affiliates, the premier global Islamic financial services group” said Mr. Michael Lee, CEO.
As of March 31, the Bank’s total assets stood at US$3.5 billion, up from US$3.2 billion at year-end 2006. A generous dividend payout of US$47.7 million, or 13.5 cents per share, was made earlier this year, in the light of the bank’s outstanding performance in 2006, when it posted a five-fold jump in net profits to US$183.8 million.
Funds under management by the Group totaled US$1.2 billion at the end of the quarter, earning of approximately US$5.3 million in fees. Income from short term deposits was US$7.3 million, up from US$451,000 in the year-ago quarter. The bank earned US$1.7 million from net trading income, while income from Investments in financing was US$43.6 million, as against US$709,000.
The Bank’s extraordinary growth comes after it was reconstituted as a public shareholding company and listed on the Bahrain Stock Exchange last year. Through a private placement and an initial public offering, the Bank’s paid up capital was increased to its current US$360 million, fuelling its ability to make acquisitions and to increase its stakes in businesses with solid growth potential. The bank’s total equity as of 31 March 2007 stood at US$964.5 million.
On the 22 April, a four for one share split increased the total issued and paid up shares from 360 million with a nominal value of US$1.00 to 1.44 billion shares with a nominal value of 25 cents per share. This action was taken to be in line with the majority of the companies listed on the Bahrain Stock Exchange, in order to provide a wider base for trading.
“As a Group, the future looks bright for Ithmaar Bank and its various subsidiaries and affiliates. The performance of the Bank’s core business activities, including underwriting, private equity, advisory services and project financing and investments, have been most satisfying” concluded Mr. Lee.
About Ithmaar Bank
Ithmaar Bank B.S.C. is licensed by the Central Bank of Bahrain and listed on the Bahrain Stock Exchange. It has a paid-up capital of US$360 million and total equity of US$3.46 billion, is a full investment bank, with businesses covering the Middle East and North Africa (MENA) region, as well as South Asia, Asia-Pacific and Europe. Besides holding significant investments in the banking, financial services and real estate sectors in different markets, the main activities of the Bank include underwriting business (equity and other financings), private equity (structuring, participation and portfolio management), project financing, and advisory business (capital market, merger & acquisitions and project advisory).
Ithmaar Bank’s flagship companies include Shamil Bank, Solidarity (an Islamic insurance company headquartered in Bahrain); Faisal Private Bank (Switzerland), Faysal Bank Limited (Pakistan) and Ithmaar Development Company.
The Bank’s shares are listed on the Bahrain Stock Exchange.
