BMB Investment Bank nine month profit rises to USD9.7 million

This fourth consecutive quarter of profitability has seen income from operations increase to US $16.7 million as compared to US $2.8 million in the first nine months of 2004. Profit for the third quarter stood at US $0.4 million (net of impairment provisions of US $1.5 million) versus a loss in the third quarter of 2004 of US $3.2 million.

Income from investments played a major role in this profitability and amounted to US $23.7 million, up 439% from the corresponding prior year period of US $4.4 million. This was partially offset by a loss of US $4.3 million in foreign exchange resulting from asset revaluation versus a profit of US $0.1 million in the first nine months of 2004.

The Bank's recent successful capital raising is now reflected on the balance sheet. Total shareholders' equity at 30 September 2005 stood at US $28.4 million as opposed to a negative US $27.7 million at 31 December 2004. The Bank's capital adequacy ratio at 30 September 2005 stood at 15.46% while total assets stood at just over US $179 million. On 30 August 2005 the Bank registered its revised and restated Memorandum and Articles of Association to reflect the change in the capital structure and to convert the Bank from an Exempt Company (EC) to a Bahrain Shareholding Company (BSC) in accordance with new legal and regulatory guidelines.

In commenting on the results, Shaikh Ali Jarrah Al-Sabah, Chairman, said:

"We are extremely pleased with our continued strong performance. The recent resumption of trading in our shares has marked the final step in what has been a lengthy process on the road to recovery and we are confident in our ability to restore our former standing in the investment banking community."

Albert I. Kittaneh, Chief Executive, said:
"The strength of our private equity investments continues to propel the Bank forward. We expect this momentum to be sustained over the coming years as we work to rebuild our credibility and re-establish our former links with correspondent institutions."