International Investment Bank (IIB), a globally focused investment bank based in Bahrain and operating in line with Shari’ah principles, has reported a net profit of $6 million for 2013.

The figures compares with a net profit of $8.2 million in 2012.

IIB maintains a diverse portfolio of global investments covering different regions such as the GCC, Europe (UK, France, and Germany), Eastern Europe (Bosnia and Herzegovina), North Africa (Tunisia), Asia (Azerbaijan) and the US across varied sectors including manufacturing, automotive, real estate, banking and retail.    

Investment banking fee income increased by $1.7 million to $4.9 million, when compared to 2012. IIB’s operating profit in 2013 was $4.7 million, compared to the same period in 2012 of $7.8 million, largely as a result of non-recurring gains in 2012. IIB’s Capital Adequacy Ratio continues to be strong in 2013 at 48.6 per cent, which is four times the minimum 12 per cent required by the Central Bank of Bahrain.

Saeed Abdul Jalil Mohammed Al Fahim, chairman of IIB, said: “2013 saw IIB continue to enhance the quality of our investment portfolio and a new deal of $25.7 million equity was concluded by the bank.
This promising deal has a total enterprise value of approximately $232 million and is in a group of multi-family residential properties located in the US state of Texas. Texas has one of the highest growth markets in the United States and enjoys a booming economy and robust multi-family residential market. The new investment will provide attractive quarterly distributions and an opportunity for capital appreciation over the 5 year holding period.”

Aabed Al-Zeera, CEO and board member, said: “Despite the moderate, yet positive, growth in the global economy last year, IIB’s investment strategy continues to remain cautious. Our strict criteria for investments ensure that we offer our investors only the most selective of offerings. In 2013 IIB increased its shareholding in two existing investments, these were in an affordable housing development of approximately one million square meters strategically located north of Jeddah, in the Kingdom of Saudi Arabia, and a mixed use shopping development in Sarajevo city center, the capital of Bosnia & Herzegovina.” - TradeArabia News Service