BMB Investment Bank first quarter income at USD1.0 million - Capital increases by 16 per cent

Income from investments continues to play a major part in the Bank's profitability, coming in at US $3.1 million for the first quarter. While this figure is lower than last year (2006 Q1: US $5.1 million), the Bank's investment portfolio remains strong and continues to perform well. The slow down in exits during the first quarter of this year reflects seasonal variations in realizations, following a particularly robust fourth quarter in 2006.

Other income rose from US $0.5 million in the first quarter of 2006 to US $0.6 million for the same period of 2007. Performance fees on customer investments realizations were primarily responsible for this result.

Meanwhile the Bank's aggressive expense control policy continues to pay off with general and administrative expenses declining by 15% to US $1.7 million in the first quarter from US $2.0 million in 2006.

BMB's total assets increased from US $172.7 million at the end of 2006 to US $183.0 million at the end of the quarter mainly due to continuing growth in the fair value of the Bank's investment portfolio. Significant improvement in the fair value of these investments also led to a 16% increase in total shareholders' equity from US $46.4 million at the end of 2006 to US $53.9 million at the end of the quarter. As a result, BMB's capital adequacy ratio improved to 23.80% from 20.22% as at year end 2006.

In commenting on the results the Bank's Chairman, Mr. Wilson Benjamin, said:

'After an exceptional performance in 2006 we have started the year off on firm footing and look forward to build on that success during the remainder of the year.'

Albert I. Kittaneh, Chief Executive, said:
'BMB is solidly on track and we anticipate another good year. In the meantime we are maintaining our focus on expanding our product offering, customer base and placement capability.'

The Bank's first quarter report can be obtained through the Bank's web site at www.bmb.com.bh.

Bahrain Middle East Bank (BSC) was established in 1982 and holds a Wholesale Banking License. The Bank's shares are listed on the Bahrain Stock Exchange under (BMEB.BH) and are held by shareholders primarily across the GCC.