Bahrain-based Venture Capital Bank (VCBank) has reported a net profit of $4.3 million for the six months period ended December 31 compared to $5.5 million the previous year.

VCBank continued to show profitable performance with the publication of its results for the half year to 31 December 2013 following review clearance by auditors Ernst & Young and approval by the Board of Directors, said the bank in its statement.

The bank's total revenues for the period ended December 31, 2013 hit $10.4 million compared to $15.2 million the year before.

On a quarterly basis, the bank posted a net profit of $1.8 million after impairment provisions and fair value loss of $0.85 million during the quarter ended 31 December 2013 compared to $2.5 million net profit after impairment provision of $0.14 million for the prior quarter.

Total revenue for the current quarter rose three per cent to $5.3 million compared to the previous quarter with income from investment banking activities representing the major portion at $4.9 million ($ 4.6 million in previous quarter).

In keeping with its prudent policy on provisioning, the Bank has maintained a collective provision of $4 million as a cushion against potential impairments, it added.

Commenting on the results, chairman Dr Ghassan Ahmed Al Sulaiman highlighted VCBank's rebound to profitability and the strong contribution from investment banking activities which forms the bedrock of the bank’s activities and of its solid results.

"The balance sheet has continued to grow with total assets increasing to $247.1 million compared to $221.5 million at June 30, 2013. Remaining largely unleveraged, total assets principally comprise shareholders’ equity which has grown to $205.5 million from $200.5 million at June 30, 2013, a 5 per cent growth on an annualized basis.

Board Member and CEO Abdullatif Mohamed Janahi commended VCBank for eight consecutive quarters of positive results and stressed that the bank was moving forward with renewed strength and confidence.

The bank has built particular expertise in healthcare, agribusiness, oil and gas, shipping, plus yielding real estate; and in the more economically and politically stable markets of the Mena region in addition to Turkey and the United Kingdom, he added.-TradeArabia News Service