First Energy Bank posts $5.6m profit
Manama, August 23, 2009
Bahrain-based First Energy Bank (FEB), the world’s first Islamic investment bank focused exclusively on the energy sector, has announced a profit of $5.6 million for the first half of 2009.
The bank reported a gross income of $16.6 million, which included $9.4 million earned on short- and long-term treasury transactions, $5.8 million on advisory services provided to local banks and $1.4 million earned on available-for-sale sukuk investments.
These robust half yearly results reinforce the strong position of the relatively new organisation, whose asset base remains liquid at over $1.1 billion, said a statement.
During the period, FEB also announced it has been active in pursuing and cementing new investments in the energy sector, such as Bahrain’s $2.1 billion Al Dur water and power project, in which the bank has recently acquired a 8.83 per cent stake.
Vahan Zanoyan, CEO, said: “It is important to realise that this is the first full year of operations for FEB, and that we are still building the bank in terms of our investment portfolio, capabilities and our operations. At the same time, we are forging along our investment pipeline with deals we see as potentially lucrative to our clients. We expect renewed investment in the energy sector, and FEB has a good pipeline of potential deals under consideration spanning the upstream, downstream, oilfield service and utilities sectors. We shall continue with our investment strategy to minimise risk, with a diversified portfolio including petrochemical, hydrocarbon and renewable / alternative energy sources.”
Using its networks within the regional energy and financial sectors, FEB is now focused on building a core specialist energy team in the investment banking market. This specialist team will allow an increased transaction flow for the remainder of 2009, to build further on the half yearly profits, he said. – TradeArabia News Service