International Investment Bank posts $13.5m net profit, announces 7% cash dividend for year 2008

Well attended by the Shareholders, the General Assembly approved the audited financials of the bank; re-appointed the Sharia Committee and the external auditors.

Commenting on the General Assembly review of operations, Mr. Ahmed Salem Bughsan, the Chairman of the General Assembly and Vice Chairman of the Board of Directors, stated:

"The impact of the global financial crisis on IIB has been minimal because of IIB's adherence to conservatism in sourcing and structuring investments, sound liquidity management and capital preservation strategies. At $13.5m, the 2008 Net Income represents a 12.3% return on Paid up Capital (ROC). The Capital Adequacy ratio at 31 December 2008 of 86% is over 7 times of 12% required by the Central Bank of Bahrain. The Bank's asset position demonstrates core strength with 55% of Total Assets represented by cash and short dated murabaha placements with financially sound banks and a further 15% invested in regional listed equities, for a total 70% liquidity position."

Further elaborating on the liquidity management of the Bank, Mr. Bugshan continued that, "the Bank's liquidity position and nil borrowings or risky off balance sheet exposures further bolsters the Bank's ability to withstand further market turbulence expected during 2009."

Commenting on the forward investing strategy of the Bank, the Chief Executive Officer and Board member, Mr. Aabed Al Zeera stated that, "During 2009, the bank will structure and place only very selective investment opportunities that meet IIB's stringent and rigorous investing criteria, underscoring IIB's heightened commitment to accord priority to protection of shareholders value over profitability, especially in a market environment continually deluged with adverse economic and market news. Nevertheless our management team, will closely and actively monitor the market to identify attractive acquisitions targets with a balanced risk. Therefore, we will invest, but selectivity will be of fundamental significance."

He concluded by stating, "I would like to express my gratitude and thanks to our shareholders, investors, and our strategic partners for their support and faith in the Bank. I would also like to thank our management team and staff, for their firm dedication, hard work and commitment."