Khaleeji Commercial Bank reports BD12.1m in net profits for nine month ended in 30 September 2007

These excellent results reflect the continued growth of the Bank's commercial and investment banking business.

The bank's assets grew to BD249m and shareholders' equity to BD124m on the back of an increase in paid up capital to BD100m and growth of its Islamic financing assets, which grew by over 300%. Customer deposits and unrestricted investment accounts reached BD100m as a result of growth in its customer base in Bahrain and in other GCC countries. Performance indicators like Return on average equity at 19.3% and earnings per share at 16 fils, continued to be robust even on an expanded capital base.

Commenting on the results, Dr. Fuad Al-Omar - Chairman of KHCB, said : 'The Bank's excellent results reflect the success of its strategy to develop investment products and banking services to meet the expectations of its clients and investors. In addition, GFH has sold 60% of its stake in KHCB to strategic investors in an important step that is aimed at creating a stronger financial institution in the region. KHCB will be able to capitalize on the fast-growing investment opportunities in Bahrain and GCC created through its new strategic investors'.

Elaborating further on the results, Mr. Ebrahim H. Ebrahim - General Manager of KHCB, commented: 'KHCB has made excellent progress in its investment and commercial banking activities and reported strong financial results during the quarter. During the last quarter, KHCB successfully closed its fourth restricted investment account (RIA) which will invest in income producing assets, mainly laborer accommodation in the GCC. This product was well received by the investors in the region and helped the Bank to attract a varied group of institutional investors and closed at USD52 M. The Bank will launch at least two new investment products in the near future, including 'Danat India Fund', which will invest in middle income housing in India.'

Mr. Ebrahim added: 'Our Commercial Banking division has continued to grow rapidly and achieved strong financial results from its operations. We continue to focus on meeting the needs and expectations of our customers by providing unique and innovative products and enhancing the customer experience'.

In line with its efforts to reach a larger customer base, the Bank will open its second branch at the Financial Mall in Bahrain Financial Harbour, in addition to launching other delivery channels in the near future.