BMB Investment Bank first quarter operating income at USD5.1 million

After accounting for taxes and other items, net income for the first three months of the year stood at US $2.5 million as compared to US $7.8 million for the whole of 2005.

Income from investments continued to play a major part in the Bank's profitability, standing at just over US $5 million at the end of the first quarter. Furthermore, a positive turnaround in foreign exchange asset revaluation has resulted in a healthy increase in foreign exchange income which stood at just over US $0.7 million.

Operating expenses in the first quarter rose by 5.8% over the first quarter of 2005 to US $1.8 million as the Bank works at rebuilding its staffing levels. Meanwhile the Bank's assets rose to almost US $172 million at the end of the first quarter of 2006, an increase of approximately US $4 million from the end of 2005

In commenting on the results the Bank's newly elected Chairman, Mr. Wilson Benjamin, said:
"We are extremely gratified with the continued solid performance of the Bank and we expect the remainder of the year to go from strength to strength. We are confident in our ability to continue solidifying our recovery and to reaching new levels of profitability."

Albert I. Kittaneh, Chief Executive, said:

"We continue to focus on rebuilding our brand and re-establishing former ties with correspondent institutions. Demonstrating sustained profitability is the surest way to regain our former standing, and we strongly believe that our niche private equity investments will be the driving force behind this continued profitability in the years to come."

The Bank's first quarter report can be obtained through the Bank's web site at www.bmb.com.bh.

Bahrain Middle East Bank (BSC) was established as an Offshore Banking Unit in 1982. The Bank's shares are listed on the Bahrain Stock Exchange under (BMEB.BH) and are held by shareholders across the GCC.