Khaleeji Commercial Bank announces 160 per cent rise in net profit at BD 7.2 million in Q3 2006

This represents an increase of 160 per cent over the same period of 2005. Total income rose by 143 per cent to BD 10.3 million, compared with BD 4.3 million for the nine months of 2005. The Bank's results provided an annualised return on equity of 25 per cent.

Announcing the results, Dr. Fuad Al-Omar, Chairman of KHCB, said:

'This impressive performance builds up on the excellent results achieved by the Bank during its first full year of operations in 2005 and a continuation of the strong growth and profitability for the first half of this year.'

Total assets grew by 44 per cent to BD 72.9 million (Q3 2005: BD 50.5 million) while shareholders' equity rose by 27 per cent to BD 41.3 million (Q3 2005: BD 32.6 million). Earnings per share of 240 fils showed a 160 per cent growth (Q3 2005: 92 fils).

Commenting on the results and the successful performance of the Bank during the period ending 30 September 2006, Dr. Fuad Al-Omar said: 'The record performance of the bank is a result of the dedicated team work of the management and the success of its strategic business model. The Bank has been able to derive and gain from various investment opportunities in the Kingdom of Bahrain as well as the region, and it has set a robust growth course for itself in the coming years.'

'The Bank's involvement in fund raising activities with efficiency and cost-effectiveness has obtained high-level recognition in the region and we are confident to build business on this excellent reputation. KHCB is also set to enhance its role in its effective presence in the region and expand its footprints to more markets in the MENA countries,' he said.

Elaborating on the results, Mr. Ebrahim H. Ebrahim, General Manager of KHCB, said: 'The Bank has been able to capitalize on the excellent growth prospects this region offers. The high economic growth of the region has created many challenging opportunities for the bank to tap into.'

He said the Bank has been able to effectively maximize returns from its investments to the benefit of its clients, investors and shareholders.

'As part of strengthening our image, the Bank was recently re-branded in line with the GFH Group's identity in the regional market. KHCB has aggressive plans for the GCC region and we are in advanced stages of launching a series of innovative Islamic commercial banking services and high-end retail products,' Mr. Ebrahim said.

In 2006, the bank also underwent a corporate restructuring process, inducting experienced professionals to its top-tier management team and opened its new headquarters and branch office at Al-Zamil Tower in Manama. The bank also deployed state-of-the-art IT systems this year whereas on the banking front, it enhanced its offers in commercial banking services. The bank is also set to launch its ATM network very soon.