Bahrain-based Ibdar Bank, a wholesale Islamic investment bank, has reported total revenues of $11.1 million during the first half of the year, an increase of 51 per cent above the prior-year period in 2014.

Total profits for the period, also increased by 79 per cent to $2.54 million after considering an impairment charge of $2.2 million relating to legacy assets. Excluding these one-off charges, the bank achieved significantly improved profitability of $ 4.72 million compared to $1.96 million in the first half of 2014.

Ibdar has recorded a net loss of $0.5 million for the three months period ended June 30, due to impairment allowances charged as compared to a net income of $0.4 million for same period in 2014.

Strong revenues are attributed to increased income generated from investment banking services over the prior period supported by gains from trading of investments and securities and profitable exits from existing investments.

“Our sukuk portfolio continues to achieve strong returns. During the period, total asset base grew by 3 per cent reaching $438 million and the total owners’ equity was further strengthened,” said Basel Al-Hag-Issa, CEO of Ibdar Bank.

“Our results demonstrate a sound business strategy that focuses on diversification across asset classes, restructuring and exiting legacy assets, and the continuous development of the Bank’s human capital.  We strive to establish a business model that can achieve stronger performance and thus enhance returns to our shareholders and clients,” he added.

“During the first half of the year, we concluded several investments that we believe will enable us to strengthen returns and will position Ibdar as a major player in the Islamic investment industry.  We continue to capitalize on our expertise in the aviation sector and have purchased and leased one Bombardier Q400 aircraft to RwandAir, as well as another purchase and lease back of three Bombardier Q400 aircrafts to Falcon Aviation Services of Abu Dhabi during this period.  In addition, we have concluded a partnership to purchase a significant minority stake in a leading power contractor in Saudi Arabia.

“In addition to these, we have a strong pipeline of opportunities that we aim to conclude by year end.  The real estate sector remains a focus for us with a particular emphasis on income generating assets in the UK, US and domestic markets,” Al-Hag-Issa concluded. – TradeArabia News Service