Venture Capital Bank reports $32.3m net profit

Chairman Dr. Ghassan Ahmed Al-Sulaiman said "Venture Capital Bank's Financial results for 2007 is a reflection of successful investments initiated by the bank since its establishment, where the second year of operation results is a proof of the high performance of the board and on the effectiveness of the decisions taken by the executive management to preserve the best results for shareholders and investors through investments with high return."

"VC Bank posted a net profit of $32.3m for the period that ended 31st December 2007, achieved a return on equity of 33%, and recommends 15% cash dividends."

Dr. Al Suliman continued "This constitutes a record-breaking performance for the second operational year which strengthens Venture Capital Banks' position as the first Islamic investment bank specialized in venture capital investment in Small and Medium sizes businesses."

"The total income for the period ending December 31st, 2007 was a total of $54.4m, while the total expenditures for the period was $22m. Also net income for the period was $32.3m, and the return on the shareholders is more than 33%, a respectable performance of the bank in the second year of operating" Sr. Al Suliman added

"The total assets as at December 31, 2007 a total of $222m, the total shareholders rights before allocations was $202m. The bank maintained a high rate of liquidity by delivering surplus of Murabaha transactions with some short-term investments done with specialized banks in this field. The capital adequacy rate of 90% is considerably higher than the minimum requirements by the Central Bank of Bahrain which is just 12%". Added Dr. Al Suliman

Speaking about the future plans of the bank, Dr. Al Suliman expressed that the bank had closed all projects and deals which began in 2007. the Executive management strategy for year 2008 aims to offers new unique products in new markets such as the Saudi market, through establishing a company to invest in the small and medium sizes businesses.

"The strong performance we achieved in various areas during the year 2007, emphasis on the strength of our strategy to form a solid foundation for Venture Capital Bank to build its growth for the coming years on." Dr. Al Suliman commented.

Highlighting VC Bank's achievement in year 2007, Mr. Abdullatif Mohammed Janahi, Board Member and Chief Executive Officer said: "2007 has witnessed several developments, establishments and new investment deals by Venture Capital Bank. For example, the chemical complex project in the south of the Hashemite Kingdom of Jordan in alliance with the Jordan Phosphate Mines Company and Sea Field Trading Limited JAFZ, through an investment in Jordan Al Abyad Fertilizers and Chemicals Company P.S.C. (JAFCO) ,

In addition Mr. Janahi emphasis that the establishment of "GLORIE" as an investment Company with $113m capital aiming to seize the investment opportunities in various sectors of the Omani Market, the establishment of Real Estate development Company "Skani" with $100m capital, owning 50% of World Development Company Limited's Project of developing residential compound in one of "The World" Projects in Dubai, United Arab Emirates, and the Bronco Drilling Company agreement to acquire a part of Challenger Limited, a specialized company in drilling Oil & Gas in Libya. Challenger limited is one of the recognized companies in MENA Fund that operated by Venture Capital Bank and its strategic partner the Global Emerging Markets (GEM)".

Summarizing the Bank's overall performance in 2007, Mr. Janahi continued: "The success achieved by Venture Capital Bank represented in the financial results is the fruit of the productive efforts of our management team, we are proud of the dedication and commitment of our team towards our shareholders and investors. Venture Capital Bank succeeded in grabbing a leading position by being the first Islamic bank in the financing of small and medium enterprises sectors in the Middle East and North Africa and added a new dimension to Islamic banking".

The annual general meeting of the Bank's shareholders will be called for Sunday 10th February 2008 in the Kingdom of Bahrain to receive the report of the Board of Directors and the audited financial statements for the period ended 31 December 2007, and approve the recommended appropriations of net profit.