MANAMA, 30 April 2007 — Ithmaar Bank, a global investment bank based in Bahrain, yesterday announced its best ever first quarter profit at $32.9 million, a jump of 250 percent from $9.4 million in same period last year.
The record performance for the period ended March 31, 2007 is up from the $9.4 million net profit earned in last year’s first quarter and follows a milestone year in 2006, with yearly profits surging to $183.8 million.
Operating profit surged five times to $34.3 million from $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.
“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,” Ithmaar Bank’s Chairman Khalid Abdulla-Janahi said.
“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” bank CEO Michael Lee said.
As of March 31, the bank’s total assets stood at $3.5 billion, up from $3.2 billion at year-end 2006. A generous dividend payout of $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 $183.8 million.
Funds under management by the group totaled $1.2 billion at the end of the quarter, earning of approximately $5.3 million in fees. Income from short-term deposits was $7.3 million, up from $451,000 in the year-ago quarter. The bank earned $1.7 million from net trading income, while income from Investments in financing was $43.6 million, as against $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 $360 million, fueling its ability to make acquisitions and to increase its stakes in businesses with solid growth potential.
The bank’s total equity stood at $964.5 million in the current period reviewed.
On April 22, a four-for-one share split increased the total issued and paid-up shares from 360 million with a nominal value of $1.00 to 1.44 billion shares with a nominal value of 25 cents per share.
“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” Lee added.