Khaleeji Commercial Bank reports 228 per cent increase in net profit to BD 5 million for first half 2006

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This represents an increase of 228 per cent over the same period in 2005. Total income rose by 192 per cent to BD 7 million, compared with BD 2.4 million for the first six months in 2005. The Bank's results provided an annualised return of equity of 28 per cent.

Announcing the results, Dr. Fuad Al-Omar, Chairman of KHCB and GFH, said, 'This impressive performance builds upon the excellent results achieved by the Bank during the first quarter of 2006, and continues the Bank's strong growth and profitability during its first full year of operations in 2005.'

Total assets grew by 42 per cent to BD 72.7 million (HY 2005: BD 51.1 million) while shareholders' equity rose by 25 per cent to BD 39.2 million (HY 2005: BD 31.4 million). Earnings per share of 170 fils showed a 227 per cent growth (HY 2005: 52 fils).

'The first six months of the year witnessed the successful re-branding of the Bank,' Dr. Al-Omar said. 'This underlines our strategic objective to create a distinct identity that better reflects the Bank's wider focus on the GCC region, and our commitment to provide a comprehensive range of innovative Islamic commercial banking services and high-end retail banking products.

'The Bank's impressive financial and operational achievements during the first half of 2006, clearly illustrate the success of KHCB as a key component in implementing the long-term strategy of Gulf Finance House to widen the activities of the Group, and enhance shareholder and client value.'

Reviewing the operational progress of the Bank, the General Manager, Mr. Ebrahim Hussain Ebrahim, said, 'The first six months of the year proved to be a most blessed and eventful period for KHCB. Key achievements include strengthening our institutional capability by the appointment of high-calibre professionals to our senior management team; the opening of our new HQ and branch office at Al-Zamil Tower in the financial district of Manama; and the installation of state-of-the-art information and communications technology systems.

'We also broadened our range of commercial banking services that includes current, savings and Murabaha accounts, and progressed plans to launch an ATM network.'

'In addition, our initial portfolio of real estate-focused investment funds performed exceptionally well. This includes the Al Hareth French Property Fund that focuses on commercial and industrial real estate in prime locations across France; the Amlak Al Bahrain Fund, which invests in the Kingdom's real estate market; Eqarat Al Khaleej, a private equity company investing in income-generating properties across the GCC; and the Gulf German Residences Fund, which has acquired a portfolio of residential properties in major property markets throughout Germany,' said Mr. Ebrahim Hussain.

'This illustrates the ability of the Bank's management team to meet clients' needs by identifying attractive investment opportunities at an early stage in real estate and development sectors of the Kingdom of Bahrain and the Middle East, as well as certain key markets in Europe,' he added.

Also during this period, KHCB was involved in several Sukuk issues and Masharaka transactions with strategic partners to fund infrastructure projects in the Kingdom of Bahrain and the region.

Having successfully positioned itself as a private Islamic commercial bank in the Kingdom of Bahrain and the GCC region, KHCB has developed an aggressive and ambitious strategy for the rest of 2006 and beyond. This involves further expanding its regional presence, enhancing its current investment focus, offering new services such as property financing and consultancy, and launching new high-end Islamic retail product and services.

In addition, the bank will continue to forge new relationships with other Islamic banks, large property developers and real estate agents, in order to source investment and financing opportunities for its clients.