MANAMA, 19 August 2007 — Bahrain-based Shamil Bank of Bahrain, a leading Islamic commercial and investment bank and member of the Ithmaar banking group, yesterday announced a record net profit of $53.2 million for the six months ended June 30, 2007. This represents a more than 62 percent leap from the $32.8 million earned in the same period last year. Total income also rose by $21.9 million as compared with the same period last year, while earnings per share rose to 5.8 US cents from 3.6 US cents for the same period last year.
Consolidated total assets rose by $355.8 million from $1.7 billion as of Dec. 31, 2006 to $2 billion at the end of June this year. Meanwhile, unrestricted investment accounts rose by $129.5 million or 15.5 percent, from $838 million to $967.6 million, reflecting increasing confidence from investors due to the lucrative profit rates offered by the bank.
“This is proving to be a very exciting year for Shamil Bank, which is witnessing many important developments across all its business lines. Our stellar results so far are a reflection of improvements in our commercial banking operations and the exiting of a number of strategic investments,” said Mohammed Abdulla Al-Anqari, chairman, board of directors, Shamil Bank.
“The board applauds the efforts of the management team and staff, which have allowed Shamil Bank to go from strength to strength. We have every faith that the future is going to be equally impressive,” he said.
Shamil Bank is currently going through one of the most active periods in its history which was reflected in its latest results, said Mohammed Hussain, board member and chief executive, Shamil Bank.
“The bank is taking proactive steps to improve our services and attract more business. The last quarter saw the introduction of the new I-Flex core banking system, which is contributing significantly to the efficiency and quality of our operations and will undoubtedly do so for many years to come. We are working to expand our commercial banking network with two new branches scheduled to open shortly in Umm Al-Hassam and Arad,” he added.
“Recent months also saw the launch of our new 100 percent capital protected Shamil Navigator Modaraba fund, which was extremely well received by the retail segment of the market. The three-year Shariah compliant investment product gave investors exposure to the best returns achieved on a basket of global Islamic equities and commodities, while providing them with the added security of capital protection at maturity,” Hussain said.
An important development for the bank during the quarter was a reduction in its stake in Karachi-based Meezan Bank from 26 percent to 7 percent. This sale earned Shamil Bank a healthy 17 percent internal rate of return (IRR) and a 46 percent return on investment (ROI) each year since the inception of this investment 10 years ago.
“Our strong customer growth is reflected across the board in all our lines, which include retail banking, investments, financing for individuals and businesses, Islamic credit cards, Takaful insurance and private banking for high net worth customers. These will also be reflected in the coming period. Our associates and subsidiaries, including Faysal Bank Limited, Pakistan and Faisal Private Bank, Switzerland, also continued to do well,” Hussain added.
“Shamil Bank is plowing ahead in implementing its strategy of expanding its corporate banking and retail operations, while improving delivery channels and introducing new products. With more deals down the road and the continued expansion of our commercial banking business, Shamil Bank is showing that it is a truly comprehensive institution.”
