BAHRAIN, 16 August 2007 — Shamil Bank of Bahrain, a leading Islamic retail and investment bank, has reduced its stake in Karachi-based Meezan Bank from 26 to 7 percent. Shamil Bank’s sale of 19 percent ownership of the institution, Pakistan’s first licensed Islamic bank, netted a healthy 17 percent internal rate of return (IRR) and an average 46 percent return on investment (ROI) each year since the inception of this investment 10 years ago.
Meezan Bank’s equity rose substantially over that period, during which it was able to withstand a major economic downturn and later reap huge rewards from Pakistan’s exceptional growth over the last four years.
“Meezan Bank’s first mover advantage has turned it into a very profitable and financially stable institution. The sale of our stake in the bank is one of Shamil Bank’s most important transactions during 2007 and will undoubtedly contribute very positively to our financial results,” said Shamil Bank Chief Executive and Meezan Bank board member Mohamed Hussain. “While Meezan Bank is expected to continue to be a strong performer, Shamil Bank decided that the time was right to dispose of part of our holdings in this very fine institution.
