BMB Investment Bank (BMB) earned a net income of $4.4 million in the first quarter of this year. It was 344.4 per cent up from $1 million in the first quarter of last year.

This robust performance results from a 175.3 per cent increase in the bank's operating income before expenses from $2.5 million last time to $6.8 million at March 31.

The bank's profitability continues to be driven by its core private equity business with income from investments at $6.6 million for the quarter versus $3.1 million for the first quarter of last year, an increase of 110.5 per cent, a spokesman said.

Foreign exchange translation income rose by 271.4 per cent from $200,000 at the end of first quarter last year to $600,000 at the end of first quarter this year. Fee income came in at $100,000 compared to $400,000.

General and administrative expenses increased from $1.5 million in the first quarter of last year to $2.5 million at the end of first quarter this year due to the increased staffing levels necessary to support the bank's growth strategy as well as a one time adjustment to accrued leaving indemnities to reflect a market level increase in salaries.

Total assets at the end of the first quarter stood at $142.8 million compared to $180.9 million at the end of last year. This decline was for the most part due to the bank's repayment of its syndicated loan and other deposits totaling $40.4 million.

"We are extremely pleased with our strong start to the year despite the negative global economic environment," said chairman Wilson Benjamin.

"The bank has no exposure to subprime or leveraged loans nor does it have any assets that could be directly impaired by the current turmoil in the financial markets. We believe our assets are of the highest quality and we are confident that they will withstand the shocks of a turbulent market.

Chief executive Albert Kittameh said, "While the current global economic slowdown could have its impact on the pace of the sale of our investments, the proven quality of our portfolio and conscious policy to mitigate risk through diversification not only ensure our ability to successfully weather the current financial storm but also invigorates us to forge ahead with great confidence."-TradeArabia News Service