Shamil Bank's net income hits new high

Total operating income during the year increased by 11.5 per cent to US$63.9 million and earnings per share increased to US$0.13 from a previous US$0.09. This performance is a clear reflection of the Bank's ability to generate superior results for its customers and shareholders from its core operation particularly in the areas of investment banking, retail banking and structured finance, funds management and investment activities.

The Board of Directors recommended a dividend payout to shareholders of 8.5 per cent of the paid up capital or US$19.4 million, which is 13 per cent higher than the dividend paid in 2004.

Compared to last year, total assets increased by 35.5 per cent to US$1.62 billion from US$1.1 billion and shareholders equity increased by 4.2 per cent to US$296.7 million from US$284.7 million. This growth clearly demonstrates the Bank's ability to foster its financial and liquidity position and building on the confidence of its clients.

According to the Bank's chief executive Mohamed Hussain "The year 2004 was a year of gradual shift in strategic focus which came into effect at the beginning of the year 2005. The Bank's existing business continued to consolidate steadily with the focus on Retail Banking and Investment Banking activities. The Bank also established a solid basis for steady growth and expansion mainly in the local and regional markets."

"Shamil Bank's achievements last year are evident of a high degree of innovation and creativity in product development and structuring investment and project financing deals. The accomplishments are also a testimony to a quality workforce lead by a strong management which drives forward the strategic process that was put in place at the time of its merger in 2000." said Mr. Hussain.

"In September 2004, the leading emerging markets rating agency Capital Intelligence (CI) announced the upgrade of the bank's long-term foreign currency and financial strength ratings to BBB- from BB+, citing healthy profitability growth, a reduction of non-performing loans and strong support from its principal shareholder, Dar al-Maal al-Islami Trust as the reason. The upgraded ratings reflect the consistent and robust financial performance of the Bank which is a result of the company's strategy to establish a strong position in the region and increase its market share in Bahrain" Mr. Hussain further added.

He also commented that the growth of 31 per cent in profitability in 2004 is even more remarkable given the uncertainties of a mixed global economic environment and the intense competition.