Bahrain-based BMB Investment Bank’s nine-month net income in 2007 rose 275 per cent to $16.2 million from $5.9 million made during the corresponding last year.

Net income for the third quarter stood at $3.3 million as compared to $2 million in the third quarter of 2006.

The bank’s operating income, before taxes and other expenses stood at $25.5 million for the nine months with almost every area of activity registering a strong gain. Income from investments reached $23.6 million as compared to $10.7 million in 2006, an increase of 120.6 per cent, while other income increased by 94.1 per cent from $1.7 million in 2006 to $3.3 million for the current nine month period.

While the bank continues its prudent approach to expense control, increased staffing levels necessary to help support the Bank’s growth strategy led to a 1.8 per cent increase in general and administrative expenses from $5.5 million for the first nine months of 2006 to $5.6 million in the current ninth months.

The bank’s total shareholder equity increased by 50 per cent, or $23.2 million from the end of 2006 to $69.6 million at the end of September 2007 with a capital adequacy ratio of 29.4 per cent. Meanwhile total assets increased by 3.4 per cent to $178.5 million at the end of the ninth months from $172.7 million at the end of 2006.

The bank’s liquidity situation continues to improve with cash and deposits with banks showing a 192.9 per cent increase from the end of 2006 to $37.2 million.

Commenting on the results, the bank’s chairman, Wilson Benjamin, said: “We are extremely proud of the progress we have made thus far in the year and expect our growth and profitability to continue. We have shown clear resolve and consistency in implementing our long term strategic plans and feel gratified by our progress in recent years.

The Bank’s recovery and growth plan continued strongly in the third quarter with Fitch Ratings recognising the renewed strength of the Bank and raising the Bank’s long time rating from CCC to B-.”

Albert I. Kittaneh, chief executive, said: “Our growth and expansion plans are steadily progressing and we have several new initiatives in the pipeline. The coming years will see the Bank introduce new product offerings and areas of activity as we seek to constantly grow and expand our unique franchise.”

Bahrain Middle East Bank (BSC) was established as an Offshore Banking Unit in 1982. The Bank’s shares are listed on the Bahrain Stock Exchange under (BMEB.BH) and are held by shareholders across the GCC.-TradeArabia News Service