Shamil Bank announces record net profit of $80.6m

The total income, meanwhile, leaped 29%, from $96.7m to $124.2m, while total assets increased to $2bn at the end of 2007, compared to $1.7bn at the end of last year. The Bank reported an impressive return on average equity of 20.9% at 31 December 2007, compared to 17.8% last year.

Return on average total assets improved substantially to 4.3% at end 2007, from 3.8% last year. The Bank continues to maintain a strong risk asset ratio at 22.4%. A dividend distribution of $30m (13%) was approved at the Bank's Annual General Meeting, which was held at the Bank's premises in the Seef District today.

"The year 2007 was an exceptional one for Shamil Bank on all fronts; our record financial results are complemented by important strategic business achievements and organisational developments, including the consolidation of our ties with our parent company, Ithmaar Bank," said Shamil Bank Chairman, Mohammed Abdulla Al Anqari.

Shamil Bank Chief Executive, Mohammed Hussain commented on developments at Shamil Bank and the industry as a whole: "Islamic banking is undergoing a period of rapid growth, with many, even in the conventional banking industry, now seeing it as a new frontier for innovation. An increasing number of private and public entities are leaning towards Sharia-compliant banking products and services as integral investment vehicles. This year Shamil Bank expects to continue its important role in improving the standards of the industry."

Hussain continued: "In 2007, Revenue continued to rise from Shamil Bank's core operations, namely retail and investment banking. Our branch network also expanded and, with the addition of two branches and five ATM machines, is now made up of a total of nine branches and 18 ATMs, spread across major population centres across Bahrain."

"The acquisition by our parent company Ithmaar Bank of the remaining 40% of Shamil Bank's shares which was publicly held, further consolidates the synergy among the companies making up the Ithmaar banking group. This now strengthens Shamil Bank's ability to enter new markets and enhance its product range. We have already witnessed early signs of this through our collaborations with another Ithmaar Bank subsidiary, Swiss-based Faisal Private Bank, to offer investment fund products to our clients," added Hussain.

Other companies making up the Ithmaar banking group are Pakistan-based Faysal Bank Limited, Solidarity (a takaful company), First Leasing Bank and Ithmaar Development Company (IDC).