Bahrain-based Seera Investment Bank has reported a total income of $34 million for 2013, an increase of 170 per cent over the previous year.

The Sharia-compliant investment bank's net profit for the year was $4.1 million compared to a net profit of $6.6 million in 2012, reported the Gulf Daily News, our sister publication.

For the fourth quarter of last year, net profit was $1.1 million compared with $2.4 million for the same period of 2012.

"Seera's profitable results over the past several years in spite of market challenges reflect a positive and satisfactory performance," remarked chief executive Abdulla Janahi.

"Income realised during the year was derived from sources such as lease rental income from its aircraft portfolio, management fees and treasury income as well as from compensation on early termination of certain leases and settlement of financing at re-negotiated terms."

Janahi said during last year Seera continued to focus on portfolio investments to enhance value.

"These efforts are already culminating into favourable returns and the bank is currently working on potential exits from some of its investments which will provide further impetus for future growth," he stated.

"Management continued to retain strict control over costs and maintained total expenses stable at $5.7 million last year, representing a sustainable cost base," he said.

The chief executive said the bank also continued to prudently manage its balance sheet ensuring it was able to meet all of its obligations while undertaking new business activity.

"The capital adequacy ratio stood at around 24 per cent at the end of the year, well above the 12 per cent minimum regulatory requirement," he added.

Janahi said the global economy was expected to grow but at a much slower pace than previously anticipated particularly due to pressures in the emerging market economies and a lingering recession in the euro zone.

"Transaction activity is also likely to recover though slowly," remarked Janahi.

"However, we believe there are attractive opportunities to be found in current market conditions and with our prudent approach to investments, we can generate healthy returns for Seera and its investors," he said.

Seera has investments in the industrial manufacturing, transportation and student housing sectors, in addition to investments in the utilities and affordable housing sectors.

The bank's investment strategy is to maintain a diversified portfolio geographically and industry wise, focusing mainly on defensive sectors underpinned by strong fundamental demand, and to avoid speculation driven sectors.-TradeArabia News Service