Bahrain-based Islamic investment bank, Venture Capital Bank (VCBank), reported a net profit of $15 million for the year ended June 30, representing an 84 per cent increase over the prior 12 month period net profit.

It also reported a return on net paid up capital of 8.3 per cent.

The announcement, made following clearance by auditors Ernst & Young and approval of the audited financials by the Board of Directors, marks a sustained period of almost three years of excellent performance by the regional investment bank with a demonstrated commitment to ethical banking and strong corporate governance.

The bank reported a net profit of $15 million from total income of $23.7 million for the year compared with a profit of $8.1 million from total income of $15.3 million for the prior year ended June 30, 2013.

Net profit and total revenue for the final quarter ended June 30 amounted to $9.7 million and $ 12.4 million respectively compared to $1 million and $4.3 million respectively for the comparative quarter of last year.

These results are after recognition of fair value losses and impairment allowances totalling $4.6 million in the year ended June 30.

Total balance sheet assets at 30 June amounted to $249 million, a 13 per cent growth over the year with the balance sheet remaining unleveraged but for a modicum of $10 million medium term debt, and shareholders’ equity has grown by 8 per cent to $216.4 million at June 30 compared to $200.5 million at June 30, 2013.

Total assets under management has also grown 8 per cent to $1.24 billion now compared to $ 1.1 billion as at June 30, 2013. The Bank’s capital adequacy ratio currently stands at a very robust 46.5 per cent, considerably higher than the minimum requirement of the Central Bank of Bahrain of 12 per cent.

The chairman of the Board of VCBank, Dr Ghassan Ahmed Al Sulaiman, in announcing the results, highlighted the significance of the rebound to profitability by the bank and the strong contribution from investment banking activities which remains the bedrock of the bank’s performance.

“These encouraging results have been achieved despite the very challenging conditions in the region and the investment banking sector and confirm the success of our plans and strategies that included an organizational restructuring and a refocusing on growth sectors in the region and globally,” he said.

“Additionally, it supports and confirms our commitment to provide shareholders and investors with acceptable rates of return,” added Dr Ghassan.

Board member and chief executive officer Abdullatif Mohamed Janahi stated that the Bank is well capitalized with a strong asset base and an active pipeline of deals, and looks to the years ahead with strength and confidence.

“These results affirm that the Bank is moving in the right direction towards achieving strong growth and underline the success of our strategic focus on key sectors in which we have built particular expertise, such as healthcare, agribusiness, oil and gas, and shipping; and in the more economically and politically stable markets in the Mena region,” he said.

The year ended June 30 has witnessed the conclusion of a number of solid deals that have strengthened our current investments portfolio and boosted our market reputation for attractive and innovative investment offerings, he pointed out.

The bank is also on target to achieve further improvements in revenue growth and reduced operating costs, he added. – TradeArabia News Service