LMC's total operating income tops $11m
Manama, March 1, 2010
Liquidity Management Centre (LMC) has announced its sixth consecutive year of profitability with a total operating income of $10.8 million last year, compared to $12.9 million in 2008.
The bank achieved a net profit of $3.2 million after impairment provisions of $2.1 million last year compared to a net profit of $1 million for 2008 after provisions of $6.3 million.
This year's net profit represents a 6.3 per cent return on capital while the average interbank rate was below 0.5 per cent.
Such results undoubtedly demonstrate the bank's ability to perform while adopting a conservative approach in current market environment, the LMC said in a statement.
The fourth quarter of last year witnessed a net loss of $0.3 million, compared to a net loss of $5.2 million in the corresponding period of 2008.
The result was mainly due to the bank adopting a highly conservative approach resulting in taking on additional provisions.
The annual result and its success was due to sound and well-managed portfolio of sukuk, diversified investment approach and fees from professional services.
The prudent operating results were enhanced by controlling operating expenses. In terms of the balance sheet, total assets witnessed an increase of 7.6 per cent from $277 million at 2008-end to $298 million for 2009.
'Going forward, though not easy in such a volatile environment, the LMC believes that the market has witnessed a large correction and that the worst is over, especially for the GCC capital markets where the adverse market condition has been priced in,' the bank said.
'The year 2010 may bring opportunities to cautious investors and positive growth may be obtained.
'Many indicators are attesting to a positive outlook for GCC. For example, oil prices are firming up to around $70-80 per barrel, significantly above the average price anticipated in many GCC fiscal budgets for 2010.
'Given our strong backing, track record and experienced team, we are well-prepared for the challenge. Our successful closing of $140 million syndicated Ijara Facility to the Mumtalakat in such an environment is a testament to that.
'Upcoming challenges will also be tackled while obtaining steps to plan for the next chapter,' the bank said.
It thanked its shareholders Bahrain Islamic Bank, Dubai Islamic Bank, Islamic Development Bank, Kuwait Finance House - Kuwait, strategic partners, alliances and team members for their support during these extraordinary times.-TradeArabia News Service