LMC net profit rises 6.9pc to $2.8m
Manama, November 7, 2013
Bahrain-based Liquidity Management Centre (LMC) has reported a 6.88 per cent increase in net profit at $2.80 million for the nine months ended September 30, compared with $2.62 million for the same period last year.
This resulted in a return on capital equivalent of 7.31 per cent annualised while the average interbank rate remained below 0.5 per cent, reported the Gulf Daily News, our sister publication.
Total operating income for the nine-month period was $7.17 million as against $6.44 million previously.
Net profit for the third quarter was $0.61 million compared with $1.39 million for the same quarter last year.
"The results demonstrate the bank's ability to perform in relatively challenging conditions whilst continuing with a conservative approach towards impairment provisioning in line with regulatory requirements," LMC chairman Emad Al Monayea said.
"Net income achieved was due to astute investment banking activities," he added.
Returns resulted from a well-managed portfolio of sukuk and equities with a diversified and balanced investment approach and fee income earned from advisory services, he said.
Portfolio-based activities saw growth of about 29 per cent with the balance sheet continuing to see significant improvement in terms of asset quality and liquidity.
Share-holders' equity rose 5.49 per cent from $58.77 million as of December end last year to $62 million as of September 30.
"Markets are stabilising from the after-effects 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 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," Abbas 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