First Islamic announces profit of USD32.7 million for 2001

The Board of Directors has recommended a dividend payment of US$16.9 million, representing a return of 15 percent on the Bank's paid-in capital.

The Bank generated a return on average total equity of 23.9 percent and return on average assets of 10.8 percent, with total equity reaching US$145.2 million, after proposed dividend, a 12.9 percent increase over 2000.

During 2001, First Islamic generated healthy annual revenue growth and record net income from an increasingly diversified portfolio of investments.

During the year, First Islamic completed three new direct investment transactions with a total value in excess of US$438 million.

In June, First Islamic arranged the purchase of a 100 percent ownership stake in Medifax EDI, Inc., a leading provider of information processing services to the health care industry in the United States, for a total transaction value of US$123.1 million. In August, First Islamic arranged the acquisition of a 61 percent ownership interest in Cirrus Industries, Inc., one of the largest manufacturers of single engine, general aviation aircraft in the world, for a total transaction value in excess of US$142 million.

Towards the end of the year, First Islamic combined Yakima Products, Inc., a leading US manufacturer of multi-sport racks and rack accessories for automobiles, and WaterMark Paddlesports, Inc., the largest producer of kayaks and paddle sport accessories in the world, for a total transaction value of US$173.1 million. The two companies are held through Destination Outdoors, Inc.

The Bank's real estate line of business demonstrated strong growth. During 2001, First Islamic completed three real estate joint ventures with ProLogis Trust, a leading global provider of integrated distribution facilities and services, for an aggregate transaction value of US$603.5 million.

In June 2001, a three-year US$100 million revolving Murabaha Facility was arranged for First Islamic by regional banks. This facility will enable First Islamic to expand the scope of its operations and support further direct investment and real estate acquisitions.

Mohammed Abdulaziz Al Jomaih, Chairman of First Islamic, said: "We are extremely grateful to the Government of Bahrain and the Bahrain Monetary Agency not only for the support they have provided to First Islamic but also for creating a sound economic and regulatory environment, which has established Bahrain as the preeminent banking centre for the Arabian Gulf region."

Abdulaziz Hamad Al Jomaih, Vice Chairman of First Islamic, said: "Despite the global economic slowdown and the events of September 11th, we are very pleased to announce a record increase in net income and healthy revenue growth in 2001. We are grateful for the continuing trust and support of our valued clients and business partners who have enabled us to achieve these results."

Atif A. Abdulmalik, the Bank's Chief Executive Officer, said: "We have been able to increase deal flow significantly in our two main lines of business, which is reflected in the strong results we achieved in 2001. Our aim in 2002 is to expand our real estate line of business into Europe and to continue to manage our direct investments with the aim of achieving profitable exits."