BMB posts H1 profit of $4.2m
Manama, August 3, 2008
BMB Investment Bank (BMB) reported first half net income of $4.2 million as compared to $12.8 million for the same period last year.
Second quarter total income from operations was $2.2 million but it was offset by operating expenses resulting in a net loss of $0.3 million, compared to a profit of $11.8 million for the second quarter of 2007.
Income from investments declined from $19.4 million in the first half of 2007 to $8.2 million in the first half of 2008.
Total assets for H1 this year stood at $140.4 million compared to $180.9 million at the end of 2007, mainly due to the Bank’s repayment of its syndicated loan and other deposits.
The Bank’s Basel II capital adequacy ratio stood at a robust 26.8 per cent at June 30 2008 compared to 24 per cent at December 31 2007.
“While the current global economic slowdown has had an impact on the pace of investment realisations, our assets are of the highest quality and our portfolio has withstood the recent economic shocks and remains robust,’ said Wilson Benjamin, chairman BMB.
’Our policy of mitigating risk through diversification has paid off and we remain confident in our ability to continue producing solid returns going forward,” he added.
“We are planning for a $75 million capital increase on course for the fourth quarter of this year,’ said Albert I. Kittaneh, chief executive, BMB.
’The Bank plans to launch a private equity fund of funds as well as a guaranteed structured note based on the Asian markets in the near future,’ he added.-TradeArabia News Service
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