VCBank reports $2.5m in net profit
Manama, November 18, 2013
Venture Capital Bank, a Bahrain-based Islamic investment bank, has reported a net profit of $2.5 million for the quarter ended September 30, as compared to $2 million for the same period last year.
Its total revenues has continued to show profitable performance with the publication of its results for the 1st quarter ended 30 September 2013 following review clearance by auditors Ernst & Young and approval by the Board of Directors.
Performance for the current quarter has significantly improved on the preceding quarter ended June 30, which had closed with net income of $0.974 million due to a $5.3 million fair value losses booked in that quarter as part of the bank’s audit closing for the 18 months period ended June 30, said a statement.
Total revenue for the period increased 20 per cent over the previous quarter to $ 5.1 million with income from investment banking activities representing a share of $4.6 million compared to $3.4 million in the previous quarter.
Dr Ghassan Ahmed Al Sulaiman, chairman, highlighted the significance of the continued strong contribution to total income from investment banking activities which forms the bedrock of the bank’s activities and solid results.
He reported that the bank’s balance sheet has continued to grow with total assets increasing to $230.8 million as compared to $221.5 million at the end of the previous quarter.
The bank’s capital adequacy ratio currently stands at 47 per cent compared to the regulatory minimum of 12 per cent, and fiduciary assets under management stands at $957 million compared to $925 million as at June 30, he said.
Abdullatif Mohamed Janahi, CEO, highlighted that the seven consecutive quarters of positive results bank. He said that the bank has built particular expertise in key areas such as healthcare, agribusiness, oil and gas, and shipping; and in the more economically and politically stable markets in the Mena region.
“These positive results are testimony to the Bank’s high standards of performance and the effectiveness of its investment strategy. The Bank has an investor base that has been and remains immensely supportive, and these results wouldn’t have been possible without their trust and continued support of the bank’s investment products,” said Janahi.
“We are confident that the bank will be able to continue to build on this excellent performance into the future with the guidance and support of the Central Bank of Bahrain and the board of directors and by continuing to adapt and capitalise on changes and opportunities in the market,” he added. - TradeArabia News Service