Bahrain-based International Investment Bank (IIB) has announced a net profit of $6 million for last year.

The Islamic investment bank had reported a return to profitability in 2012, posting gains of $8.2 million. Investment banking fee income increased by $1.7 million to $4.9 million, compared with 2012, reported the Gulf Daily News, our sister publication.

IIB's operating profit for last year was $4.7 million, compared with $7.8 million in 2012, largely due to 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.

"Last year saw the bank continue to enhance the quality of its investment portfolio and a new deal of $25.7 million equity was concluded," IIB chairman Saeed Abdul Jalil Al Fahim said.

"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 US 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 five year holding period," he added.

IIB chief executive and board member Aabed Al Zeera said despite the moderate, yet positive, growth in the global economy last year, its investment strategy continued to remain cautious.

"Our strict criteria for investments ensures that we offer our investors only the most selective of offerings.

"Last year, IIB increased its shareholding in two existing investments, these were in an affordable housing development of approximately one million sqm strategically located north of Jeddah, in Saudi Arabia, and a mixed use shopping development in Sarajevo city centre, the capital of Bosnia and Herzegovina," stated Al Zeera.

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.-TradeArabia News Service