Dr Ghassan Al Sulaiman and Abdullatif Janahi.
VCBank posts $5.3m net profit
Manama, May 15, 2014
Bahrain-based Venture Capital Bank (VCBank) has reported a net profit of $5.3 million for the nine months ended March 31 this year as against $7.2 million for the corresponding comparative period last year.
The total revenues were $14.5 million as against $20 million earlier.
The bank posted a net profit of $1 million after fair value loss of $0.02 million during the third quarter, compared with $1.7 million net profit after impairment provision of $0.39 million for the prior quarter.
The total revenue for the quarter was $4.1 million, with income from investment banking activities representing the major portion at $3.2 million.
Chairman Dr Ghassan Al Sulaiman said the strong contribution from investment banking "forms the bedrock of the bank's activities".
The balance sheet remained strong with total assets at $242.6 million as on March 31 compared with $221.5 million as on June 30 last year. The bank has maintained a collective provision of $4 million as a cushion against potential impairments.
Remaining largely unleveraged, total assets principally comprise shareholders' equity which has grown to $207 million from $200.5 million at June 30 last year, a three per cent growth on an annualised basis.
The capital adequacy ratio remains strong at 42.1pc compared with the regulatory minimum of 12 per cent, and fiduciary assets under management stand at $965 million compared with $925 million as of June 30 last year.
Board member and chief executive Abdullatif Janahi said the bank has now seen 10 consecutive quarters of positive results.
The bank is studying several projects in sectors like healthcare, education and infrastructure aimed at achieving sustained profitability and fostering growth in the region whilst minimising risk, he said.
"The bank will continue to target improvements in revenue growth and operating costs whilst maintaining adequate liquidity to build a solid base for sustained profitability and thus generate good returns for shareholders and investors," added Janahi.-TradeArabia News Service