Bahrain-based International Investment Bank (IIB) said it has registered a net income of $1.7 million for the first quarter of 2012 compared to a net loss of $1.3 million in the same period last year.

Announcing the results, IIB said its total income too rose to $3.2 million from last year's $0.9 million, mainly derived from investment banking fees and profit earned on funds placed with financial institutions.

The total expenses fell to $1.4 million in the period, a reflection of management’s stringent ongoing cost control policy. Share of loss from associates was $0.2 million compared with $0.7 million in the first quarter of 2011, said the Bahrain-based Islamic investment bank.

After booking gains on foreign exchange of $0.1 million, the bank earned a net income of $1.7 million in the period compared with a net loss of $1.3 million in the same period last year.

The total assets stood at $151.4 million on March 31, compared to $148.5 million at year end 2011. The increase principally arises from the purchase of investments of $3.4 million in 2012 funded partially by the profit made during the first quarter.

Capital Adequacy Ratio was 36 per cent as of March 31 versus the Central Bank of Bahrain’s minimum requirement of 12 per cent, demonstrating IIB’s capacity to significantly increase its investment portfolio in the future from a regulatory capital perspective.

Commenting on the results, IIB chairman Saeed Abdul Jalil Mohammed Al Fahim said: "Trading conditions in 2012 continue to be very challenging for investment banks for two principal reasons. Firstly, many investors have incurred significant losses during the past three years on their regional and global portfolios and have, therefore, been reluctant to commit to making new investments."

"Secondly, many regional banks have suspended the provision of financing of real estate development and private equity projects," he stated.

"Despite the challenging market environment, IIB’s stakeholders and investors have demonstrated their confidence in our strategy, that has resulted in IIB earning a net income of $1.7 million during the 3-month period," he added.

Aabed Al-Zeera, the CEO and board member said: "Our strategy has been to structure and market to clients a range of attractive investment offerings in the manufacturing, financial, energy and real estate sectors in various countries."

"During 2012, IIB has concluded one investment banking transaction in Bahrain and also purchased shares in a regional quoted company. The Bank’s “pipeline” of potential transactions has enabled the Bank to evaluate several opportunities for possible future launches or direct investment."

"IIB’s balance sheet continues to be strong, evidenced by the fact that it had no borrowings or off balance sheet commitments during the year," he added.-TradeArabia News Service