ithmaar bank half year profit surges 130 per cent to us$65.9 million
Ithmaar Bank, a globally focused investment bank based in Bahrain, today announced a 130 per cent surge in half year net profits to a record US$65.9 million, up from US$28.7 million for the same period last year. Operating profits tripled from US$23.7 million for the first half of 2006 to US$71.1 million for the first half of 2007, as the Bank continued to expand both geographically and in terms of volume and scope of business.
“Ithmaar Bank is growing at a rapid pace, as our results clearly demonstrate. Just over a year since the close of our IPO, we have managed to turn the Bank into one of the most dynamic financial institutions in the region, with subsidiaries and affiliates covering a wide range of Islamic financial services and investments, spread across the Middle East, Europe, South Asia and elsewhere,” said Khalid Abdulla-Janahi, Chairman, Ithmaar Bank.
“In addition to the strong results posted by our subsidiaries and associates, Ithmaar Bank itself has been successful in growing its client base, which has come to include governments, pension funds and major institutions. This is only the beginning for us,” he added.
The Bank made major strides in all its direct lines of business, including underwriting (equity and other financings), private equity (structuring, participation and portfolio management), Islamic financing, private banking, and advisory services, amongst others. Income from investments in financings contributed US$97.8 million, while US$25.4 million were collected in fees and commissions. Meanwhile, the Bank earned US$23.1 million from sale of investment securities and total assets, including funds under management, stood at US$5.1 billion at the end of June 2007, compared to US$4.4 billion at year-end 2006.
Commenting on the Middle East outlook in the context of challenging global financial market conditions, Michael P. Lee, Chief Executive Officer, said, “From a Middle East regional point of view, a number of positive factors continue to exist, including the outlook for oil and high liquidity levels.
“On the private equity side, we will be launching several major new funds, covering technology, innovation, real estate, tourism and other sectors. These funds, which cater to different levels of risk and allocation preferences, will offer investors a whole range of investments to choose from,” he added.
Meanwhile, the Bank’s wholly owned development arm Ithmaar Development Company (IDC) has made significant progress on several major projects, both within the Kingdom of Bahrain and internationally. These include the US$1 billion Health Island, which will provide state-of-the-art wellness facilities in a resort-type environment that includes hotels and specialist healthcare.
Ithmaar Bank’s flagship subsidiaries and affiliates, which, in addition to IDC, include Shamil Bank of Bahrain, Faysal Bank Limited (Pakistan), Faisal Private Bank (Switzerland), Solidarity and First Leasing Bank, are also involved in major ventures that will positively impact future results. The Bank’s stellar performance follows on from a milestone 2006, in which annual profits leapt more than three-fold to US$181.1 million.
