Venture Capital Bank holds AGM to distribute dividends on 143% growth

Having completed its second year of being fully operational, VC-Bank recorded a growth of 143% in 2007, reported $32.3m net profit.

"VC-Bank is a testament of how an innovative vision can materialize in a manner which far exceeds expectations for such a young firm. The bank enjoyed a highly successful 2007, marked by record financial results, encouraging strategic initiatives, impressive new business achievements, and on-going organizational developments," revealed Mr. Abdullatif Mohamed Janahi, Chief Executive Officer, VC-Bank.

"I would particularly like to highlight the Bank's outstanding increase of 143% in net profit to $32.3m, and the return on equity of 33%. These examples constitute an extraordinary performance for a newly established bank, with our ROE comparing more than favourably with even the most successful, long-established international institutions."

The Bank implemented key strategic initiatives during the year, including more than doubling their paid up capital through a successful rights issue and private placement, which will support our ambitious business plans for the future. In addition to, the $100m proposed establishment of Saudi Venture Capital Investment Company, which is currently under formation, and heralds the start of our regional expansion strategy into Saudi Arabia and other key GCC markets.

VC-Bank successfully executed a number of new innovative products, projects and deals in the MENA region during 2007. These include unique investment offerings in new sectors such as shipping and fertilizers, new investment companies to tap the potential of growing regional markets such as Oman and Morocco, and additional real estate offerings, including an exclusive residential community project in the iconic 'The World' development in Dubai.

Furthermore, the Bank's existing portfolio of investments has substantially progressed during the course of the year. Among these are the MENA SME Private Equity Fund, Jeddah and Abha City centre rejuvenations projects, Park Plaza, ASAS Real Estate Company, Challenger Limited, and House of Development.

Mr. Janahi added that, the Bank was also, "Currently working on a number of high-yielding investment projects, which we expect to finalise shortly before launching them as investment products to our esteemed clients.

"To support our growing business activities, we have continued to build the institutional capability of the Bank. Key strategies have included strengthening our framework of corporate governance, risk management and internal controls; enhancing our IT infrastructure; and expanding our team of professionals with several new appointments," Mr. Janahi added.

"Our impressive business achievements to date underline the success of the Bank's MENA-based strategic focus, which is to target fundamentally sound and well-managed SMEs across multiple industry sectors, and select real estate theme projects, with strong growth potential. Through such investments, we aim to offer investors superior risk-adjusted returns, and co-investment opportunities which are in full compliance with Islamic Shari'ah principles.

"Above all, however, these achievements would not have been possible without the support and encouragement of all our stakeholders, who are the real architects of the Bank's continued success. I would therefore like to thank our shareholders and directors, our strategic partners, and our investors for their support and faith in the Bank. I would also like to thank our management team and staff, for their unwavering dedication, hard work and commitment, and I congratulate them for translating our vision into a reality," Mr. Janahi concluded.