Bahrain-based Unicorn Investment Bank said its net profit after impairments and fair value write-downs has risen to $35 million and added that it has posted a record 2008 operating profit of $73.8 million up 46 per cent from $50.4 million in 2007.

The results are the culmination of a strong year for Unicorn, in which the bank also further strengthened its capital and funding base, the bank said in a statement.

The bank's earnings per share were 18.7 US cents. In January, Unicorn successfully closed a three-year syndicated commodity Murabaha facility that was significantly oversubscribed, raising $125 million, it added.

Despite the global financial crisis, Unicorn also successfully raised new capital through an international private placement, the statement said.

The increased capital resources, combined with the bank’s modest degree of leverage and strong liquidity, will fund its continuing regional and international business expansion, said a top official.

Commenting on the results, Majid Al-Sayed Bader Al-Refai, Unicorn’s managing director and chief executive officer, said: “At the close of a challenging year, and against the backdrop of an extremely difficult global economic environment, Unicorn is pleased to once again report strong results.'

As a very conservatively-run, Islamic bank, Unicorn has no exposure to the toxic assets that have caused major losses to be incurred across the global banking industry, Al Refai pointed out.

'The bank maintains a prudent net cash surplus position and has minimised its dependence on short-term borrowings. Furthermore, Unicorn has very limited exposure to listed equities and the real estate sector,' he added.

The bank has also deliberately avoided the real estate and listed equity markets and so has avoided the market losses that are affecting some institutions, Al Refai remarked.

According to him, the bank has minimal holdings of listed equities and virtually no real estate exposure. 'Unicorn has a very low debt-to-equity or leverage ratio and is well-positioned to weather the shocks that are currently affecting the banking industry.'

'During 2008, we made important strides towards realising our vision of building a full-service, global Islamic investment bank and were able to successfully conclude a number of landmark transactions,' he added.

Unicorn completed several high profile transactions in 2008, including the acquisition of Bahrain Financing Company, one of the leading foreign exchange and remittance houses in the GCC.

The acquisition includes Bahrain Exchange Company in Kuwait and EzRemit in the United Kingdom.

Notable private equity transactions included the acquisition of Sun Well Services, a leading regional services provider to oil and gas exploration companies in the United States.

Unicorn also sold its shares in UAE-based Orimix Concrete Products, generating a return on capital of 160 per cent and an Internal Rate of Return (IRR) of 98 per cent.

The Orimix transaction was recently named the Islamic Finance Deal of the Year by Euromoney magazine.

In asset management, Unicorn raised capital for Turquoise Coast Investment Company, a real estate investment company established to provide investors with an opportunity to benefit from the thriving vacation homes market on Turkey’s Aegean Coast.

The bank recorded a fourth quarter operating profit (before impairments and fair value write-downs) of $15.7 million. However, in light of the adverse effects of the global financial crisis, the bank adopted a conservative and prudent approach to the valuation of its private equity portfolio and recorded investment write-downs of $31.8 million.

These write-downs reflect the current market uncertainties and the general drop in valuations across the globe and the long-term business prospects for t