BMB Investment Bank announces first quarter results

This came as a direct consequence of the global economic downturn that continued to severely impact market conditions in the first quarter of the year.

That said, it is noteworthy that since the end of the quarter market conditions and performance have significantly improved and are expected to have a positive impact on the private equity industry as a whole and on the Bank's own investment portfolio in particular. The Bank is therefore optimistic that its investment portfolio will stabilize and improve its earning power in line with the recovery in market conditions.

The Bank has continued its prudent approach in provisioning some of its private equity fund investments. Foreign exchange income on the other hand has turned around since the end of last year to produce a profit of $0.8m in the first quarter as compared to a profit $0.6m in the first quarter of 2008.

Total assets at 31 March 2009 declined to $89.0m primarily as a result of decreases in fair values on the private equity funds and fixed income portfolios. Shareholder's equity at 31 March 2009 declined to $34.9m as compared to $43.0m at 31 December 2008 due to the losses for the quarter and the negative adjustment to fair value. Meanwhile, the Bank's Basel II capital adequacy ratio remains at a healthy 20.18% at the end of the quarter as compared to 22.8% at the end of 2008.

In commenting on the results the Bank's Chairman, Mr. Wilson Benjamin, said:

"Despite disappointing results in the first quarter, we are forging ahead with great confidence. Already there are signs of recovery in the global market and as markets improve, our existing asset base should once again positively contribute to the Bank's earnings. More importantly, the Bank is embarking on an ambitious plan to develop and expand our business franchise. Various initiatives have already been taken which promise to take the Bank in an exciting new direction. The Board and I are very optimistic about the future."

Akbar A. Habib, Chief Executive Officer, said:
"Our new strategic direction is clear - and we are moving forward in a disciplined and gradual manner towards implementing this new strategy. We are in the process of restructuring the Bank and expanding its business line by establishing platforms that will assist the Bank in diversifying its business mix and securing sustainable income streams that are to a greater degree neutral to market cycles. We are positioning the Bank to serve specific market segments with special needs and therefore add value to clients' investment requirements.

The Bank is also currently assessing the sizing and structure of its staffing levels in order to bring about an optimum level of efficiency and effectiveness in implementing our new strategy. Most importantly, while the Bank is continuing with the various restructuring measures, we are driving a campaign to raise new capital and attract investors that would be able to provide a strategic and synergistic fit."