LMC net profit surges 78pc to $2.2m in H1
Manama, August 1, 2013
Bahrain-based Liquidity Management Centre (LMC) has reported 78.64 per cent increase in net profit at $2.18 million for the first half of this year, compared with $1.22 million for the same period last year.
The net profit resulted in a return on capital equivalent to 8.56 per cent annualised while the average interbank rate remains below 0.5 per cent, reported the Gulf Daily News, our sister publication.
Total operating income for the last six months was $5.26 million as against $3.85 million for the same period last year.
Net profit for the second quarter this year was $0.76 million as against $0.71 million for the same period last year.
"These results undoubtedly demonstrate the bank's ability to perform in relatively challenging conditions," chairman Emad Al Monayea said.
"The bank continued with a conservative approach in the current market environment towards impairment provisioning in line with regulatory requirements," he added.
"The net income achieved was due to astute investment banking activities, specifically opportunistic and perceptive investment returns made from a well-managed portfolio of sukuk and equities with a diversified and balanced investment approach and fee income earned from the bank's advisory services," he added.
Portfolio-based activities witnessed a growth of almost 30 per cent during the period under review.
The bank's balance sheet continues to see significant improvement in terms of asset quality and liquidity.
Shareholders' equity rose by 4.19 per cent from $58.77 million as of December 30 last year to $61.24 million as of June 30.
"Markets are stabilising from the aftereffects of volatility stirred up by expected changes in monetary policy and economic stimulus," chief executive Ahmed Abbas said.
"Although a challenging environment lies ahead, this year may continue to present opportunities to alert investors and positive growth may be obtained if volatility levels are taken into account.
"Based on the bank's track record and current performance along with the continued shareholder support and experienced management team, we believe that we are well prepared for the remainder of this challenging year," he added.
LMC's shareholders include Bahrain Islamic Bank, Dubai Islamic Bank, Islamic Development Bank and Liquidity Management House, a wholly-owned subsidiary of Kuwait Finance House. – TradeArabia News Service