Venture Capital Bank achieved a net profit of $11 million last year, it was announced at the bank's annual meeting at Sheraton Hotel.

The total income reached $32.4 million and a 5.4 per cent return on equity.

The shareholders agreed a bonus shares issue of 8.5 per cent amounting of $18.9 million, which represents about 11 per cent of the average paid-up capital.

'VCBank achieved positive results in 2009 and the board endorsed distribution of bonus shares at 8.5 per cent with total value of $18.9 million,' said chairman Dr Ghassan Ahmed Al Sulaiman.

'Our balance sheet has grown from a modest base of $66 million at inception to $356 million and off balance sheet fiduciary assets have grown to $672 million,' Al Sulaiman added.

'With the continuous difficult economic conditions and operating environment which imposed a myriad of challenges during 2009, VCBank relentlessly continued its successful progress towards realisation of its vision to become the leading regional Islamic venture capital investment bank,' said chief executive officer Abdullatif Mohammed Janahi.

'In the light of the negative consequences of the global financial downturn, VCBank continued to embrace a conservative and balanced approach to enter into new investments and focused on profitable projects to ensure realisation of its objective both to add value to the shareholders and investors and contributing to Bahrain's economic and social development.

'We remain focused on the Mena region, targeting sound and yielding private equity opportunities from well-managed small to medium-sized enterprises.'

During the year the bank signed a partnership with Dutch Delight, a Bahraini company specialising in high-quality handmade chocolates.

Moreover, Jordan Al Abyad Fertilisers and Chemicals company received a syndicated financing facility of $45 million, managed and led by Jordan Ahli Bank to further finance work in progress of its industrial complex to manufacture fertilisers and chemicals.

Challenger Limited received a $60 million working capital facility with Natixis, a European bank specialised in the oil and gas sector, which will provide further financial strength for expansion.

The bank received approval from the Capital Market Authority of Saudi Arabia to establish the Saudi Venture Capital Investment Company.

VCBank also announced the completion of the German Orthopaedic Hospital in Bahrain

'We are keen on continuing our performance in the coming period to achieve our shareholders' objectives and to prove VCBank's concept in investing in small and medium businesses,' Janahi said.-TradeArabia News Service