Bahrain Middle East Bank (BMB) reported a steep fall in net profit in the first quarter to $900,000 from $1.7 million for the same period last year.

The bank achieved total income of $3.1 million in the first quarter of the year, down from $3.8 million at the start of 2010.

'We are pleased with the results of the bank, despite present regional and international uncertainties, and its capacity to consistently deliver net positive earnings remains testament to the success of its new initiatives and the present multi-dimensional business model,' said chairman Wilson Benjamin.

'This turns a new leaf in the history of the bank as it systematically replaces the once more predominantly private equity model to one that encompasses varying asset classes and diverse business lines.

'The bank is expected to receive additional capital shortly, which should further strengthen the balance sheet and in turn assist it to scale new heights in its effort to derive and create long-term sustainable value for shareholders,' he added.

'The qualitative shift in sources of income clearly demonstrates the viability of the bank's new model and the significant increases in fee-based income a step towards meeting the targeted levels of diversification and securing sustainable sources of income,' said chief executive officer Akbar Habib.

'These new initiatives are expected to further contribute as the bank gradually expands its scope of activities in a measured manner.

'The envisaged receipt of new capital will provide further impetus to broaden the depth and breadth of ongoing initiatives. We remain optimistic that the bank's outlook will continue to remain positive.

'As part of its broader plan, the bank expects to introduce a unique product designed to suit investor requirements in a market environment characterised by uncertainty and high volatility.'-TradeArabia News Service