Bahrain-based Seera Investment Bank has posted a total income of more than $12 million for last year, with a net profit of approximately $7 million, said a report.

This compares with a net profit of approximately $61 million for 2011. For the last quarter, net profit stood at $2.4 million compared to a net loss of $2.5 million for the same period in 2011, according to the report published in our sister publication, the Gulf Daily News.

"This is the third year in a row that Seera has delivered positive returns in spite of market challenges of the last few years," said chief executive Abdulla Janahi.

"Overall, Seera had a productive year in 2012 with the bank continuing to build value in its existing portfolio while expanding into new asset classes."

Janahi said Seera's existing investments continued to generate income for the bank, and income realised during the year was primarily from recurring revenues from these investments including lease rentals and investment and management fees.

"Last year also saw Seera generating fee and financing income from a new investment in a Sharia-compliant financing facility provided to a UK Student Housing development in London," he said.

"Having a stable revenue base has allowed Seera to work with its investor companies to grow at the correct pace, keeping in mind market conditions, and to exit investments at a time when returns can be optimised."

This approach, he said, has been a significant factor in the past in helping Seera generate very positive returns at time of exit.

"During the year, Seera continued to develop its existing investment portfolio by working closely with investor companies to enhance their returns and position them to take advantage of market opportunities," he said.

"These efforts are expected to further improve returns from planned exits in the near future."

Janahi said market conditions remain challenging and a quick turnaround appears unlikely.

"Having said this, we have seen concerted efforts to stabilise the situation and we hope these measures will gain traction and enable growth to gradually return," he said.

"The current environment requires us to be even more diligent with new investments and we will continue to focus on investments which are resilient to economic cycles.

"Seera's investments have done quite well through the difficult markets in the last few years, especially as we have been able to effectively align their business plans with the changes to the economic environment," he said.

"The fact that these investments have held their value well, has proven the effectiveness of our hands-on management approach and that our investment strategy is well suited to market conditions." – TradeArabia News Service