Bahrain-based First Leasing Bank (FLB) said it has made a net profit of $3 million last year and added that its operating income surged to $9.5 million, up from $7.1 million in 2007.

The bank's income from financing activities grew to $8.4m from $3.6m in 2007 and total portfolio grew to $142.5m from $54.5m at the end of 2007.

"Our 2008 annual results remain positive for the bank as it continues growing toward maturity," said chairman Khalid Kanoo.

"Despite strong revenue and portfolio growth this year, the bank had planned for substantially higher growth with the help of our major shareholders and board in raising the requisite capital to do so.

Demand is very strong for the bank's leasing products. With adequate funding, we have a tremendous opportunity to keep growing, to produce more profits and to further distinguish FLB as a market leader for equipment leasing in the GCC region." said Kanoo.

The bank, which is dedicated to developing middle-market equipment leasing in the GCC region, presented its financial result for last year to the shareholders at an annual general meeting at the Ritz-Carlton Bahrain Hotel and Spa yesterday.

The bank's net profit was supported by operating income of $9.5 million, up from $7.1 million in 2007.

Net income of $3m is down from $4.5m in 2007 as the bank invested in incremental staff and infrastructure to support planned growth.

Net income for the fourth quarter was $900,000. Total assets increased to $179.4m while shareholders' equity stood at $103.8m.

"Despite our capital constraints, FLB managed to leverage our balance sheet and grow in 2008," said chief executive officer Greg Brinkerhoff.

"I am proud of our management and staff accomplishments and want to thank them for their efforts during this very challenging year. We will continue to work quickly and diligently toward transitioning the bank to maturity, which for FLB will be a modest three-to-one debt-to-equity capitalisation ratio and a lease portfolio over $500m.

"Milestones achieved by FLB in 2008 included penetrating the Qatar market, adding operating leases to our portfolio and closing vendor programme leases with multi-national equipment manufacturers."

Islamic Finance News has recognised the bank as the Best Islamic Leasing Provider for 2007 and, again last year.-TradeArabia News Service