Venture Capital Bank, a Bahrain-based Islamic investment bank, said its net profit soared to $47 million for the year ended December 31, 2008, when compared to $32 million in the previous year.

Announcing the results, Venture Capital chairman Dr. Ghassan Ahmed Al Sulaiman said despite the difficult market conditions that prevailed in the second half of 2008, the bank had  performed well and added that it was the bank’s third successful year of operations since its inception.

'The results reflect the strength of the bank’s strategy and effectiveness of plans, in addition to adopting a flexible approach to suit the current situation and work to strengthen the ratio of capital and liquidity, while working to expand the bank’s investors base,' he pointed out.

The bank achieved a return on the shareholders by 27 per cent for last year and has recommended 10 per cent cash dividend and 5 per cent bonus shares for the investors, Al Sulaiman explained.

The total income for the period ending December 31, 2008 jumped to $82 million, while the total expenditures for the period was seen at $35 million. The total assets of the bank for the period touched $243 million, while total shareholders equity before allocations was $224 million, he added.

The bank maintained a high rate of liquidity in short-term bank placement, and short term investments with specialized banks in this field. The bank's capital adequacy rate was put at 43 per cent, which is higher than the minimum requirements of 12 per cent by the Central Bank of Bahrain.

Venture Capital Bank said its net profit in the fourth quarter of 2008 amounted to $8 million.

Abdullatif Mohammed Janahi, board member and VCBank CEO said the VCBank had started implementing many of its investment projects in 2008 .

'There were also several key projects in 2007 including the expansion of Jordan Al Abyad Fertilizers and Chemicals Company (Jafcco) and the establishment of an investment company in Oman to target investment opportunities with $113 million capital and partnership with the Bronco Drilling, the US  company to enter Challenger Limited Company, specialized company in oil drilling in Libya,' he added.-TradeArabia News Service