BMB Investment Bank semi annual income up by 233 per cent to USD12.8 million

The Bank's operating income before expenses rose by 141% to US $20.5 million in the first half of 2007 from US $8.5 million for the same period last year.

The Bank's core business continues to play a major role in the Bank's profitability, with income from investments coming in at US $19.3 million, an increase of 220% as compared to the same period in 2006 due to the increased level of exits in the second quarter of the year. The Bank's other income increased by 108% to US $2.7 million, up from US $1.3 million in 2006 mostly due to performance fees earned on the profit sharing arrangement with the Bank's customers.

In the second quarter the Bank took a provision of approximately US $3.7 million against an investment which it considers to be unrecoverable as the company went into Chapter 11 in the United States and the prospects for recovery look dim.

The Bank continues to exercise prudent control over general and administrative expenses which declined from US $4.1 million in the first half of 2006 to US $3.9 million for the same period in 2007.

Meanwhile the Bank continues to focus on expanding its customer base and strengthening product placement capability as the Bank works to increase its product offering.

BMB's total footings declined from US $172.7 million at the end of 2006 to US $168 million at the end of June 2007 mainly due to a US $15.2 million repayment on the Bank's medium term US $75 million loan, which now stands at US $28.5 million representing a total repayment of 62%. This drop in assets was partially offset by the increase in retained earnings as well as an increase in the fair value of the Bank's investment assets.

Shareholders' equity rose from US $46.4 million at the end of 2006 to US $63.9 million at the end of June 2007, an increase of almost 38%. As a result, the Bank's capital adequacy ratio improved to 27.81% at the end of June 2007 from 20.22% at the end of 2006.

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

"We are delighted with the Bank's continued strong performance, which validates not only our strategy but our ability to execute it. We look forward to building on that progress over the remainder of the year and positioning the Bank for the future."

Albert I. Kittaneh, Chief Executive, said:

"Sustained robust profitability is paving the way for the Bank's expansion into new areas as well as increasing our investment activity - both of which will enhance the Bank's future performance. Going forward this strong foundation will allow us to further strengthen and expand the range of our product offering to our customer base."