Shares of Khaleeji Commercial Bank to be listed on the Bahrain Stock Exchange

The Bank is currently under conversion from a closed shareholding company to a public joint stock company.

KHCB, established in November 2004, operates under a retail banking license (Islamic principles) granted by the CBB, with a paid up capital of BD100m divided into 1,000,000,000 ordinary shares.

Originally, KHCB was a fully owned subsidiary of Gulf Finance House with a paid up capital of BD30m.

The Bank increased its capital in 2007 when several large and reputable regional institutions including Al Imtiaz Investment Company, Kuwait, Emirates Islamic Bank, Qatar Islamic Bank, Bahrain Islamic Bank, Awqaf & Minor Affiars, Dubai and MENA Real Estate Company, Kuwait became strategic shareholders.

Dr. Fuad Abdulla Al-Omar, Chairman of Khaleeji Commercial Bank said, 'Transition from closed to public listed company is a turning point in the history of the Bank. The listing will enable the Bank to diversify its shareholder base while providing liquidity to its exiting shareholders.'

Mr Ebrahim H Ebrahim, CEO and Board Member of KHCB commented, 'In the last three years since establishment of the Bank, we have performed very well on all fronts. Supported by strong financial performance, listing of the shares on the BSE is a natural step in the evolution of the Bank as a leading player in the local and regional banking sector. We also believe that the listing will enhance its position among the investors in the regional capital markets. We will continue to build a sustainable business and enhance shareholder returns in the future.'

KHCB recently reported strong results for the first quarter ended March 31, 2008.

Net income for the quarter increased by 213% to BD12.6m compared to BD4m for the corresponding period in 2007.

Total assets grew by 187% to BD308.5m and customer deposits increased by 130% as of March 2008.

On an annualised basis, Return on average assets was 17.4%, and return on average equity was 39.9%.

The Bank also distributed a cash dividend of 15% for the year 2007.