Bahrain-based First Energy Bank (FEB), a leading Islamic investment bank,  has posted a net profit of $6 million for the first half of the year, an increase over the $5.6 million achieved during the same period last year.

FEB also reported achieving a gross income of $18.1 million in the first half, registering a boost over last year’s $16.6 million for the same period, with total assets of $1.21 billion of which 51 per cent of assets were liquid.

“We are extremely happy with our first half results, especially given the challenging market conditions we continue to experience in the region and globally,” said Esam Yousif Janahi, chairman of First Energy Bank.

“These results are testament to the dedication and the experience that the FEB family collectively has, and which contributes significantly to the continued confidence our shareholders, partners and investors have in the Bank.”

The end of June saw FEB’s capital adequacy ratio sustained at a high level of 73 per cent,  with placements acting as the prime source of income generation with $5.6 million from banks and financial institutions, $3.1 million from sukuk, $5.1 million share in associates, and $3.5 million from Islamic financing.

The majority of the bank’s assets, 86 per cent, are located within the GCC, additionally, 57 per cent of the bank’s assets are from the financial sector while 34 per cent are from the energy sector.

On July 10, FEB launched the floating of MENAdrill Hercules II, its second Friede & Goldman “Super M2” jackup offshore drilling rig, which is now scheduled to be delivered in the first quarter of 2011.

The first rig, the MENAdrill Hercules I, is scheduled to be delivered in the last quarter of 2010. Both rigs, which have been under construction since 2008, are part of FEB’s inaugural project, MENAdrill.

Vahan Zanoyan, CEO of First Energy Bank, said: “FEB remains focused on building a diversified portfolio of quality assets in the global energy sector, and even though the market remains sluggish, we have managed to accomplish much this year and are well on our way to meeting our strategic goals for 2010.” – TradeArabia News Service