LMC net profit soars 844pc
Manama, February 13, 2013
Bahrain-based Liquidity Management Centre (LMC) has reported a 844.30 per cent increase in net profit for 2012 to $3.069 million compared with $0.325 million for 2011.
LMC's shareholders are Bahrain Islamic Bank, Dubai Islamic Bank, Islamic Development Bank and Liquidity Management House, which is a wholly-owned subsidiary of Kuwait Finance House.
The net profit resulted in a return on capital exceeding 6 per cent while the average interbank rate remains below 0.5 per cent, reported the Gulf Daily News, our sister newspaper, citing the bank statement.
The net profit for the fourth quarter ended December 31, 2012, was $0.454 million, as against a loss of $0.929 million in the corresponding previous period, it added.
The total operating income rose to $8.06 million from $7.34 million recorded in the corresponding previous period.
"These results undoubtedly demonstrate the bank's ability to perform while adopting a conservative approach in the current market environment by keeping provisions in line with market regulators requirements," remarked LMC chairman Emad Al Monayea.
Chief executive Ahmed Abbas said the achievement is due to various transaction advisory services provided to Islamic banks and corporations in the region and a well-managed portfolio of sukuk and equities with a diversified investment approach.
"The prudent operating results were further enhanced by controlling operating expenses. The balance sheet also saw significant improvement in quality and liquidity," he noted.
"Furthermore, the shareholders' equity increased by 6 per cent during the same period," he added.
Al Monayea pointed out that the GCC capital markets had seen a large rally with the adverse market conditions already priced in. "This year may continue to carry opportunities to alert investors and positive growth may be obtained if volatility levels are taken into account," he stated.
"Given our strong shareholder support, track record and experienced team, we believe that we are well prepared," said Al Monayea.-TradeArabia News Service