BMB net income rises 233pc
Manama , July 30, 2007
Bahrain-based BMB Investment Bank (BMB) has registered a 233 per cent rise inhalf-yearly income.
Net income rose to $12.8 million from $3.8 million for the corresponding period last year.
The bank’s operating income before expenses rose by 141 per cent to $20.5 million in the first half of 2007 from $8.5 million last year.
The bank’s core business continues to play a major role in its profitability, with income from investments coming in at $19.3 million, an increase of 220 per cent. The bank’s other income increased by 108 per cent to $2.7 million, up from $1.3 million in 2006 mostly due to performance fees earned on the profit sharing arrangement with the bank’s customers.
In the second quarter the bank took a provision of approximately $3.7 million against an investment which it considers to be unrecoverable as the company went into Chapter 11 in the United States and the prospects for recovery look dim.
The bank continues to exercise prudent control over general and administrative expenses which declined from $4.1 million in the first half of 2006 to $3.9 million for the same period in 2007.
BMB’s total footings declined from $172.7 million at the end of 2006 to $168 million at the end of June 2007 mainly due to a $15.2 million repayment on the Bank’s medium term $75 million loan, which now stands at $28.5 million representing a total repayment of 62 per cent.
This drop in assets was partially offset by the increase in retained earnings as well as an increase in the fair value of the bank’s investment assets.
Shareholders’ equity rose from $46.4 million at the end of 2006 to $63.9 million at the end of June 2007, an increase of almost 38 per cent. As a result, the bank’s capital adequacy ratio improved to 27.81 per cent at the end of June 2007 from 20.22 per cent at the end of 2006.
Commenting on the results the bank’s chairman, Wilson Benjamin, said:“The bank’s continued strong performance validates not only our strategy but our ability to execute it. We look forward to building on that progress over the remainder of the year and positioning the Bank for the future.”-TradeArabia News Service