LMC registers $2.1m net profit
Manama, August 6, 2014
Liquidity Management Centre (LMC), a Bahrain-based wholesale Islamic bank, has reported a net profit of $2.10 million for the second quarter ended June 30, as against $2.18 million for the same quarter last year.
The net profit resulted in a return on capital equivalent to 7.8 per cent annualised while the average interbank rate remains below 0.5 per cent, said a report in the Gulf Daily News (GDN), our sister publication.
Total operating income for the quarter under review was $5.06 million in comparison to $5.26 million for the same period last year.
The results demonstrate the bank's ability to continue to perform in relatively challenging conditions while continuing with a conservative approach in the current market environment towards impairment provisioning in line with regulatory requirements, chairman Mohammed Ebrahim 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," Ebrahim added.
Portfolio-based activities saw growth of approximately 10 per cent.
The balance-sheet continues to see significant improvement in terms of asset quality and liquidity.
Furthermore, shareholders' equity rose by 3.7 per cent from $62.96 million as of December 31 to $65.27 million as of June 30.
"Markets are stabilising from the after-effects of volatility stirred up by expected changes in monetary policy and economic stimulus," chief executive Ahmed Abbas said.
"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.
"Based on the track record and current performance along with continued shareholder support and experienced management team, we believe that we are well prepared for the coming year," he added.
LMC's shareholders include Bahrain Islamic Bank, Dubai Islamic Bank, Islamic Development Bank and Kuwait Finance House Investment Company, a wholly-owned subsidiary of Kuwait Finance House. - TradeArabia News Service