Wholesale Islamic bank Liquidity Management Centre (LMC) has posted a net profit of $3.38 million for the first nine months of this year ended September 30, compared with $2.8 million for the same period last year.

The net profit resulted in a return on paid-up capital equivalent to 8.4 per cent annualised while the average interbank rate remains below 0.5 per cent, said a report in the Gulf Daily News (GDN), our sister publication.

Net profit for the third quarter stood at $1.28 million versus $0.61 million for the same period last year.

Total operating income was $7.77 million in comparison to $7.17 million for the same period last year.

Abdul Wahab Al Rushood, deputy chairman, said: “These results undoubtedly demonstrate the bank's ability to continue to perform in relatively challenging conditions whilst continuing with a conservative approach in the current market environment towards impairment provisioning in line with regulatory requirements.”

Ahmed Abbas, chief executive, said: “The net income achieved was due to astute investment banking activities, specifically opportunistic and perceptive investment returns made from a well managed portfolio of sukuk and equities with a diversified and balanced investment approach and fee income earned from bank's advisory services.”

Portfolio based activities witnessed an approximate 11.43 per cent growth.

The bank's balance sheet continues to see significant improvement in terms of asset quality and liquidity.

Furthermore, shareholders' equity rose by 6.1 per cent from $62.96 million as of December 31 last year to $66.79 million as of September 30 this year.

“The regional stock market continues to be volatile amid volatile commodity prices,” Abbas said.

“Although a challenging environment lies ahead, the coming months may continue to present opportunities to alert investors and positive growth may be obtained if volatility levels are taken into account.

“Based on the bank's track record and current performance along with the continued shareholder support and experienced management team, we believe that we are well prepared for the foreseeable future,” he added. - TradeArabia News Service