LMC first quarter net profit surges
Manama, May 7, 2012
Liquidity Management Centre (LMC) has announced a first-quarter net profit of $511,000 after the impairment provision of $146,000, compared with a net profit of $361,000 for the same period in 2011.
The total operating income was $1.96 million in comparison to $2.1m last time.
This quarter's net operating profit represents a five per cent per annum return on capital while the average interbank rate remains below 0.5 per cent.
These results undoubtedly demonstrate the bank's ability to perform while adopting a conservative approach in the current market environment by taking additional provisions.
'This achievement was due to a sound and well-managed portfolio of sukuk and equities and diversified investment approach,' said chairman Emad Y Al Monayea.
'The prudent operating results were further enhanced by controlling operating expenses.'
In terms of the bank's balance sheet, total assets witnessed a decrease of 36.4 per cent from $184.7 million at the end of December to $117.4 million in first quarter of 2012.
Alternatively, shareholders' equity increased by 1.3 per cent during the same period.
'Looking forward, though difficult and challenging environment lay ahead, we believe that the market has witnessed a large correction especially for the GCC capital markets where most of the adverse market conditions have been priced in,' said chief executive Ahmed Abbas.
'This year may continue to carry opportunities to alert investors and positive growth may be obtained if volatility levels are taken into account.
'Many indicators are currently attesting to a positive outlook for GCC. For example, Oil prices stabilise well above the $100 per barrel, significantly above the average price anticipated by many GCC fiscal budgets for 2012. Accordingly, we remain hopeful but cautious at the same time.
'Given our strong shareholder support, track record and experienced team, we believe that we are well prepared for the remainder of this challenging year.' – TradeArabia News Service