MANAMA: Despite difficult market conditions, the Bahrain-based Venture Capital Bank (VCB) has reported $47 million net profit for last year.
VCB Chairman Ghassan Ahmed Al-Sulaiman said this is the third successful year of operations since the bank’s inception. As a result VCB’s board recommended 10 percent dividend and five percent share bonus for shareholders. The return on the shareholders equity was 27 in 2008 as the bank posted $32 million in 2007.
The results reflect the strength of the bank’s strategy and effectiveness of plans. The bank has adopted a flexible approach suiting the current situation, and worked to strengthen the ratio of capital and liquidity, and expand its investors’ base.
The total income for the period ending Dec. 31, 2008 was $82 million, while the total expenditures for the period was $35 million. The bank’s total assets for the period were $243 million, while total shareholders equity before allocations was $224 million. The bank maintained a high rate of liquidity in short-term bank placement and short-term investments with specialized banks in this field.
“Despite the difficult conditions experienced by the world and the Middle East, we were able, with the blessings of God, to complete the 2008 investment plans. The results came to reflect the variety of successful investments which were launched early in 2008 that included the various sectors such as oil, industrial and health sectors,” said Al-Sulaiman.
“I am proud to say that VCB started implementation of many of its investment projects in 2008 as well as in 2007. For example, the expansion project of Jordan Al-Abyad Fertilizers and Chemicals Company (JAFCCO), the establishment of an investment company in Oman to target investment opportunities with $113 million capital and the partnership with Bronco Drilling, the US company to enter Challenger Limited Company, a specialized oil drilling company in Libya,” said Abdullatif Mohammed Janahi, board member and VCB CEO.
