IIB Q1 net income soars to $5.4m
Manama, June 2, 2008
International Investment Bank (IIB), a globally focused Islamic investment bank based in the Kingdom of Bahrain, has posted net income of $5.4 million in the first quarter of 2008.
This was in comparision to $5 million for the same period last year. Total income, which increased by 13.2 per cent to $ 9.4 million in the quarter, is mainly derived from investment banking fees generated from the structuring, underwriting and placement of new investments.
Total assets as of March 31, 2008, were $264.3 million compared to $257.3 million at year end 2007 and $74.9 million as of March 31, 2007.
The increase in assets since March 31, 2007, was mainly due to the share issue that was completed in December 2007 which generated net proceeds of $138.9 million. The annualised returns for the 2008 first quarter were 10.1 per cent on average equity and 8.3 per cent on average assets, while the Cost to Income Ratio was 42.4 per cent which compares very favourably with that of other regional investment banks.
Capital Adequacy Ratio under Basel II was 118.4 per cent as on March 31, 2008, versus the Central Bank of Bahrain’s minimum requirement of 12 per cent, demonstrating IIB’s ample capacity to increase its investment portfolio in the future from a regulatory capital standpoint.
'Following the completion of the share issue in December 2007, IIB has successfully placed the remaining portion of an investment offering in 2007, structured and part placed a new investment and progressed its review and due diligence on several other offerings that are expected to be placed with investors later in 2008,” said chairman of IIB Saeed Abdul Jalil Mohammed Al Fahim.
“The bank’s joint venture in Saudi Arabia, Ewaan, has purchased plots of land for future development and sale. Despite increasing competition from other regional financial institutions, IIB’s deal pipeline remains strong and we expect higher earnings in 2008 than in 2007.'
“During the 2008 first quarter, IIB has evaluated a number of investment opportunities in the real estate development, real estate income-generating and private equity sectors in diverse geographical areas including Europe, the GCC region and North Africa. The Bank expects to launch several investment offerings later in the year,” said CEO and a board member Aabed Al-Zeera.- TradeArabia News Service