Ithmaar Bank announces a 115% surge in operating income

The 115% surge compares to an income of $81.1m for the same period last year. The Bank achieved a net profit of $77.9m for the first nine-months of 2007. The comparative result for 2006 was a net profit of $163.7m, which included a gain of $105.5m on the sale of a subsidiary, Islamic Investment Company of the Gulf (Bahamas) Limited. Excluding this gain, the Bank's nine-month net profit actually increased by 34% in 2007, when compared to the same period last year.

"These results are a reflection of the growth in both Ithmaar Bank's direct business activities and the consolidated earnings of the Ithmaar banking group, which includes some of the most successful brands in the Islamic financial services industry. The group continues to widen its geographical presence, with business now spanning the Middle East, North Africa and South Asia (MENASA), as well as Europe, Africa, Australia and the US,"

said Khalid Abdulla-Janahi, Chairman, Ithmaar Bank.

"We expect several important announcements in the months ahead, including some by our development arm Ithmaar Development Company (IDC) as it begins implementing its $2.9bn project portfolio," he continued.

The Bank recently announced plans to complete its acquisition of Shamil Bank of Bahrain, a leading Islamic commercial and investment bank, of which it currently owns 60%. The move is another step towards consolidating the group and further strengthening its position as one of the most dynamic and diversified of its kind in the region.

Ithmaar Bank made substantial progress in 2007 in all its direct lines of business, which include underwriting (equity and other financings), private equity (structuring, participation and portfolio management), Islamic financing, private banking, and advisory services covering project financing, investments, capital markets and mergers & acquisitions. Ithmaar Bank's subsidiaries and affiliates, which also include Shamil Bank of Bahrain, Solidarity, First Leasing Bank, Faysal Bank Limited (Pakistan), Faisal Private Bank (Switzerland), also made important inroads.

"We've been able to build a solid team of investment bankers and joint venture partners at Ithmaar Bank, with broad-ranging experience in private equity, Islamic finance and mergers & acquisitions, including knowledge of specific market sectors such as transportation, infrastructure, agribusiness and financial institutions, among others," said Michael P. Lee, Chief Executive Officer and Member of the Board, Ithmaar Bank.

"We expect to make several more important appointments as we continue entering new sectors. We are also seeking out new joint ventures and strategic alliances in key markets around the world. All of this will ultimately allow us to offer a more diversified and sophisticated array of products and services to our clients, which include supranationals, governments, corporations, pension funds and other institutional investors, as well as high net worth individuals," he added.