Bahrain-based Liquidity Management Centre (LMC) registered a total operating income of $3.4 million in the first quarter of the year up from $1.3 million for the same period last year.

The bank achieved a net profit of $1.1 million after general provisions of $800,000 in comparison to a net profit of $100,000 last time.

'This quarter's net profit represents 8.8 per cent per annum return on capital while the average interbank rate remains below 0.5 per cent,' said chief executive officer Ahmed Abbas.

'Such results undoubtedly demonstrate the bank's ability to perform while adopting a conservative approach in the current market environment by taking additional provisions.

'This quarter's result and its success was due to a sound and well managed portfolio of sukuk and equities, diversified investment approach and investment banking fee based activities.

'The prudent operating results were further enhanced by controlling operating expenses.'

Total assets witnessed a decrease of 4.1 per cent from $298 million to $286 million.

Shareholders' equity increased by 1.9 per cent during the same period.

'Looking forward, though difficult in such a challenging environment, we believe that the market has witnessed a large correction especially for the GCC capital markets where most of the adverse market condition has been priced in,' he added.

'This year may continue to carry opportunities to cautious investors and positive growth may be obtained if volatility levels are taken into account.

'Many indicators are currently attesting to a positive outlook for GCC. For example, oil prices continue its upward trend to around $75-$85 per barrel, significantly above the average price anticipated by many GCC fiscal budgets for 2010,' he said.

'Given our strong shareholder support, track record and experienced team, we believe that we are well prepared for the remainder of a challenging year,' he added.-TradeArabia News Service