Ithmaar Bank consolidated net profit surges 91% to $59.3m in Q1

This result, up from $31m earned in the same period last year, comes as the Bank and its subsidiaries and associates in the Middle East, Asia Pacific, Europe and North Africa continue their expansion into new markets. The operating profit, meanwhile, nearly doubled, from $32.5m to $62.9m. Earnings per share increased to 1.51 cents per share, compared to the 1.07 cents per share in the corresponding period last year.

'We are pleased that Ithmaar Bank was able to sustain the momentum that has been building since it went public in 2006 and is able to report record results yet again. The Bank has made substantial progress across the board, including in its private equity, fund management and advisory services,' said Ithmaar Bank, CEO & Member of the Board, Michael P. Lee.

At the end of the quarter, the Bank's consolidated total assets stood at $4.5bn, up 10% from the year ended 31 December 2007. Funds under management also recorded a steep hike of 18%, rising by $300m to $2bn at the end of the first quarter.

'Our flagship subsidiaries and associates, which, together with Ithmaar Bank itself comprise the Ithmaar banking group, all did remarkably well in the first quarter. Our flagship subsidiary, Shamil Bank, now wholly owned by Ithmaar Bank following a share exchange late last year, has continued to perform strongly. It has launched several new products this year, including funds investing in real estate in Turkey and in Central and Eastern Europe, and its Shamil Jawaher offering, which is designed to offer profits that are better than those offered by traditional savings schemes,' said Ithmaar Bank, Co-CEO, Mohamed Hussain.

'In the first quarter, our real estate development arm, Ithmaar Development Company, began implementing its $3.3bn portfolio of projects, beginning with Dilmunia, its $1.6bn 'health island' project, which is set to turn the Kingdom of Bahrain into a centre for wellness and health tourism. Reclamation has started on the landmark project, which will be located off the north east coast of Bahrain,' continued Hussain.

The first quarter saw several significant developments for the Bank, including its successful listing on the Kuwait Stock Exchange, with the aim of making the shares more accessible to investors in the region, thereby increasing liquidity.

In February 2008, Ithmaar Bank announced its acquisition of 19.1% of the issued and paid up share capital of BBK, a leading Bahrain-based commercial bank, for approximately BD123m ($329m). Also during the first quarter, Ithraa Capital, an associate of Ithmaar Bank, received licenses from the Saudi Arabian Capital Market Authority to set up an Investment Bank in Kingdom of Saudi Arabia. Ithmaar Bank had earlier announced a record 2007 consolidated net profit of $188.3m.