MANAMA, 29 October 2006 — Shamil Bank announced a record net income of $50.2 million for the nine months ended Sept. 30, 2006, reflecting an increase of 96 percent over $25.60 million earned in the same period last year. As a result, earnings per share increased to 22 cents from 11 cents for the same period last year. Annualized return on equity also increased from 11.3 percent to 19.7 percent. The increase in net income is attributed to substantial growth in earnings from investment activities and income from funds under management.
The bank’s consolidated total assets increased by $206 million representing 13.5 percent to $1.73 billion as at Sept. 30 from $1.52 billion as at Dec. 31, 2005. On the liability side, unrestricted investment accounts also increased by $197.2 million representing 31 percent, from $639.6 million at the end of December 2005 to $836.8 million at Sept. 30, 2006, reflecting customers’ increased confidence in Shamil Bank’s products and services.
Commenting on the bank’s strong performance during the first nine month period of 2006, Mohamed Hussain, chief executive of Shamil Bank, said: “This year is a milestone year for the bank and I’m delighted with the successes achieved so far.”
The excellent financial performance so far has set the foundation for the next phase of growth and development of Shamil Bank. The bank also has high quality investments, private, commercial and retail banking businesses lined up.
“We are also confident that Shamil Bank’s own strong performance will continue to be supported by an equally robust performance of its associates and subsidiaries - Faysal Bank Ltd., Pakistan, Meezan Bank Ltd., Pakistan and Faisal Private Bank, Switzerland, thereby adding considerable value for shareholders, investors and customers alike.
The strong performance is reflective of the bank’s success in implementing its three-year strategic plan in all areas of our businesses, comprising retail banking, corporate banking, investment banking and private banking,” Hussain said.
Continuing on the results, Hussain added: “Further growth in business is expected in the future. We will also leverage the success of our products and enhanced services to help acquire new customers and strengthen relationships with our existing customers. We’re now in a better position to invest in areas of growth and at the same time capitalize on our resources and continue to improve our operating efficiency. Shamil Bank continues to successfully discharge its economic and social responsibilities as a leading local Islamic financial institution. We’re proud of our workforce that always makes achievement of such good results possible. With the blessing of Allah, our strategy for the remaining part of the year is to enhance our position in the local market and leverage our retail franchise.”
In August 2006, Ithmaar Bank acquired a 60 percent shareholding in Shamil Bank. Ithmaar Bank is a Bahrain-based full service Islamic investment bank with a paid-up capital of $360 million. The bank is listed on the Bahrain Stock Exchange and has operations spanning the Middle East, North Africa, Asia and Europe, and holds significant investments in the banking and financial services sector in different markets.