LMC posts $3.6m net profit in 2013
Manama, February 19, 2014
Bahrain-based Liquidity Management Centre (LMC) reported a net profit of $3.58 million last year compared to $3.069 million in 2012.
LMC recorded 16.62 per cent increase in the net profit, a return on capital equivalent to 7.02 per cent while the average interbank rate remains below 0.5 per cent, reported the Gulf Daily News, our sister publication, citing top officials.
The LMC's net profit for the fourth quarter stood at $0.784 million compared to $0.454 million for the same period in 2012, said chairman Emad Al Monayea and chief executive Ahmed Abbas.
The total operating income was $10.569 million last year in comparison to $8.060 million for the same year in 2012.
"These results undoubtedly demonstrate the bank's ability to perform in relatively challenging conditions whilst continuing with a conservative approach in the current market environment towards impairment provisioning in line with regulatory requirements," they said.
"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 bank's advisory services.
"The portfolio based activities witnessed an approximately 25 per cent growth. The bank's balance sheet continues to see significant improvement in terms of asset quality and liquidity," they said. "Furthermore, the shareholders' equity rose by 7.12 per cent from $58.77 million in 2012 to $63 million last year."
They said markets are stabilising from the after effects of volatility stirred up by expected changes in monetary policy and economic stimulus.
"Although a challenging environment lies ahead, the coming year may continue to present opportunities to alert investors and positive growth may be obtained if volatility levels are taken into account," they said.
"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 coming year," they said.
Al Monayea and Abbas thanked the shareholders Bahrain Islamic Bank, Dubai Islamic Bank, Islamic Development Bank and Liquidity Management House (a wholly owned subsidiary of Kuwait Finance House - Kuwait), strategic partners, alliances and team members for their continued support.-TradeArabia News Service