Capinnova swings to Q2 net profit
Manama, August 15, 2010
Capinnova Investment Bank, the Sharia compliant investment banking arm of BBK, posted a net profit of $159,000 for the second quarter as compared to a net loss of $821,000 for same period in 2009.
The gross revenue for the three months ending in June was $1.89 million in comparison to $1.17 million for the same period last year.
The net profit for the six months ending in June was $1.62 million as compared to a net loss of $2.47 million during the same period in 2009. The gross revenue for the period increased to $5.26 million as compared to $1.59 million for 2009.
Capinnova is a newly established investment bank that started its operation at the beginning of 2009 with an authorised capital of $500m and issued and paid-up capital of $125m that was later on increased to $151.5 million.
The bank aims to provide quality investment products and innovative solutions to companies, financial institutions and high net worth individuals.
'We are delighted to have reported profits in the first and also in the second quarter of 2010. These numbers reflect the strength of our business model at a very challenging time faced by the industry,' chairman Abdul Kareem Bucheery said.
'We are also very pleased to note the remarkable increase in our gross revenues notwithstanding the fact that we are a newly established investment bank that commenced operations in difficult market conditions,' he remarked.
Capinnova Investment Bank chief executive officer Jamal Hijres said: 'At Capinnova, we are doing our best to cope with the current tough market conditions and our focus on introducing innovative Islamic banking products and services should make us even better prepared for the longer term.'
Last year Capinnova also invested in building the biggest commercial mall in Muharraq area. Total cost of the project is worth approximately $50 million.
This year the bank also acquired 50 per cent stake in Sakana Holistic Housing Solutions. Furthermore, in April Capinnova invested $20 million in EBLA Computer Consultancy, Kuwait, a leading GCC entity that is engaged in the provision of IT solutions and IT consultancy services in the Mena region.-TradeAraba News Service