Venture Capital Bank achieves $47m net profit

The results reflect the strength of the Bank's strategy and effectiveness of plans, in addition to adopting a flexible approach to suit the current situation and work to strengthen the ratio of capital and liquidity, while working to expand the Bank's investors base.

Despite the difficult market conditions that prevailed in the second half of 2008, VCBank announced its achievement of high growth rate of profits 47% compared to 2007 results, the bank also announced a net profit amounted to $47m for the year ended December 31, 2008, compared to $32m in 2007 and thus achieved a return on the shareholders by 27% for last year.

The total income for the period ending December 31st, 2008 was a total of $82m, while the total expenditures for the period was $35m, an outstanding performance in the third operational year for the Bank.

The total assets of the bank for the period were $243m, while total shareholders equity before allocations was $224m.

The Bank maintained a high rate of liquidity in short-term bank placement, and short term investments with specialized banks in this field.

The capital adequacy rate of 43%, which is higher than the minimum requirements by the Central Bank of Bahrain's 12%. Venture Capital Bank reported that it had achieved a net profit in the fourth quarter of 2008 amounted to $8m.

The bank's board of directors recommend to the Annual General Meeting the distribution of 10% cash dividend and 5% bonus shares to the shareholders.

On this occasion, VCBank Chairman, Dr. Ghassan Ahmed Al Sulaiman said:

"Despite the difficult conditions experienced by the world and the Middle East, we were able, with the blessings of God, to complete the 2008 investment plans. The results came to reflect the variety of successful investments which was launched early in 2008 that included the various sectors such as oil sector, industrial sector and health sector."

The Chairman thanked the Executive Management of the efforts and achievements that have been achieved through a strong risk management that enabled the bank to achieve the best results despite the difficult conditions being experienced by global markets.

He also expressed his appreciation to the confidence of investors in the bank, dedication and sincerity of the staff which has been translated into impressive results at the end of 2008.

Speaking on the bank's future plans, he added, "2009 will be full of challenges for the investments sector especially with the economic variables were the flexibility of VCBank's investment plans comes as a key to overcoming these challenges."

Mr. Abdullatif Mohammed Janahi, Board Member and VCBank CEO, commented, "I am proud to say that VCBank started implementation in many of its investment projects in year 2008 as well there were projects in 2007 for example, the expansion project of Jordan Al Abyad Fertilizers and Chemicals Company (JAFCCO) and the establishment of an investment company in the Sultanate of Oman to target investment opportunities with $113m capital and the partnership with the Bronco Drilling, the US company to enter Challenger Limited Company, specialized company in oil drilling in the Republic of Libyan."

"Beside the launch of the growth engine (Venture Capital Fund Bahrain) and the establishment of the German Orthopedic Hospital in Bahrain to be centre of medical excellence for orthopedic and rehabilitation medical services at German standards by German Surgeons and medical professionals, and the launch of labour accommodation project at Jebel Ali, which aims to develop three residential compounds for workers and staff in the industrial zone of Jebel Ali, United Arab Emirates at a cost of Dhs400m. In addition to investing in several small projects in the Kingdom of Bahrain and the region," he added.

Mr. Janahi also highlighted the operational expansion in year 2008, with the move to its new headquarters at Venture Capital Bank Building in the Diplomatic Area. The Bank occupies the top two floors which enable it to achieve its expansion plans in the administration with the rise in the total workforce to 79 employees through new appointments in the areas of Risk Management, Internal Audit, Financial Control, and Operations that have further strengthened the institutional capability of the Bank.