International Investment Bank 's 1st quarter net income rises to $5.4m

Net Income was $5.4m compared with $5.0m for the same period last year.

Total Income, which increased by 13.2% to $9.4m in the quarter, is mainly derived from investment banking fees generated from the structuring, underwriting and placement of new investments.

Total Assets at 31 March 2008 were $264.3m compared to $257.3m at year end 2007 and $74.9m at 31 March 2007.

The increase in assets since 31 March 2007 was mainly due to the share issue that was completed in December 2007 which generated net proceeds of $138.9m.

The annualized returns for the 2008 first quarter were 10.1% on Average Equity and 8.3% on Average Assets, while the Cost to Income Ratio was 42.4% which compares very favourably with that of other regional investment banks.

Capital Adequacy Ratio under Basel II was 118.4% as at 31 March 2008 versus the Central Bank of Bahrain's minimum requirement of 12%, demonstrating IIB's ample capacity to increase its investment portfolio in the future from a regulatory capital standpoint.

Commenting on the Bank's results, his Excellency Mr. Saeed Abdul Jalil Mohammed Al Fahim, Chairman of IIB, said: "Following the completion of the share issue in December 2007, IIB has successfully placed the remaining portion of an investment offering in 2007, structured and part placed a new investment and progressed its review and due diligence on several other offerings that are expected to be placed with investors later in 2008. The Bank's joint venture in Saudi Arabia, Ewaan, has purchased plots of land for future development and sale. Despite increasing competition from other regional financial institutions, IIB's deal pipeline remains strong and we expect higher earnings in 2008 than in 2007."

Mr. Aabed Al-Zeera, CEO and a Board Member of the Bank commented: "During the 2008 first quarter, IIB has evaluated a number of investment opportunities in the real estate development, real estate income-generating and private equity sectors in diverse geographical areas including Europe, the GCC region and North Africa. The Bank expects to launch several investment offerings later in the year."

Commenting on the Bank's recent foray in Tunisia, Mr. Al Zeera added that: "IIB structured an equity stake in 2008 of 13.2% through a fund in a leading vehicle distributor located in Tunisia and partly placed it with its investors at the quarter end. The transaction is IIB's first investment both in Tunisia and in the car distribution sector. It is also our first pre-IPO investment and further enhances diversification opportunities for our sophisticated investors. The IPO was the largest on the Tunis Stock Exchange in the last 10 years and was over-subscribed more than ten times."