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Liquidity Management Centre net profit tops $1.26m

MANAMA, May 14, 2015

Wholesale Islamic bank Liquidity Management Centre (LMC) posted a net profit of $1.26 million in the first quarter of this year, compared with $0.865 million for the same period last year.

The net profit resulted in a return on capital equivalent to 9.4 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 recorded was $3.54 million in comparison to $2.65 million for the same period in 2014.

"These results undoubtedly demonstrate the bank's ability to continue 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," chief executive Ahmed Abbas said.

"The net income achieved was due to opportunistic and perceptive investment returns made from a well managed portfolio of sukuk and equities with a diversified and balanced investment approach."

Portfolio-based activities witnessed an approximately 30pc reduction compared to the December 31, 2014 record.

On the other hand, the total liabilities decreased by 35.82 per cent from $134.52 million as of December 31 last year to $86.34 million.

"The bank's balance sheet continues to see significant improvement in terms of asset quality and liquidity," chairman Abdul Wahab Al Rashood said.

Furthermore, shareholders' equity rose by 1.95 per cent from $67.48 million as of December 31 last year to $68.80 million as of March 31 this year.

"The regional stock market continues to be volatile amid volatile commodity prices," Abbas pointed out.

"Although a challenging environment lies ahead, this 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 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 challenges in this year," he added. - TradeArabia News Service




Tags: profit | LMC |

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