BMB returns to profitability with a 125 per cent improvement in net profit

The main highlights of the first quarter results are as follows:
Net profit for the three month period ended 31 March 2002 was US $3.0 million as compared to a net loss of US $11.8 million in the first three months of 2001.

Operating profit surged 186% to US $7.0 million as compared to an operating loss of US $8.2 million in the first quarter of 2001.

Investment activity in the first quarter produced a profit of US $5 million as compared to a loss of US $7.4 million for the corresponding prior year period, a 167% improvement

Other activities showed a profit of US $0.7 million as compared to a loss of US $1.2 million in the first quarter of 2001.

In commenting on the results, Sheikh Ai Jarrah Al-Sabah, Chairman, said:

'We are delighted with our results for the first quarter of 2002, which clearly show that the strategy put in place at the beginning of 2001 has succeeded not only in stabilizing the Bank, but also in returning us solidly to profitability. We look forward to further improvement in our performance and a strengthening of our franchise over the coming years.'

Chief Executive Albert I. Kittaneh added:
'Despite the global economic downturn over the last year, the asset value of our investments has held up very well. The exits that we had initially projected for 2001, and which had been delayed due to the unfortunate events of September 11th, have begun to come through in 2002. With the global economy beginning to show signs of recovery, we expect to continue on our path of improvement and believe 2002 will continue to be a good year as we build upon the efforts of the Bank's management and staff.'