European Islamic Investment Bank plc (EIIB-Rasmala’ or the ‘Group’), the London-listed asset management and financing group focused on the growth markets of the Gulf Cooperation Council (GCC), has announced its full year financial results for the year ended 31 December 2014.
The Group is traded on the London Stock Exchange Alternative Investment Market (AIM).
Key financial highlights for the period ended 31 December 2014 were as follows:
· Total operating income of US$16.4 million (2013: US$15.4 million)
· Profit before tax from continuing operations of US$2.3 million (2013: US$2.23 million)
· Total assets under management (AUM) stood at US$1.11 billion
· The Group maintained its strong capital adequacy, regulatory and liquidity ratios
Key business and operational highlights for the period:
· The Rasmala Arabian Markets Growth Equity Fund returned 10.1% compared to the S&P Pan Arab Composite Large Mid Cap Index return of -0.9%. This builds upon the fund’s long-term track record, which stands at an annualized out performance of 8.44% since inception in 2006. The Rasmala GCC Fixed Income Fund returned 6.7% despite the global fixed income headwinds and compared to the Citigroup MENA Broad Bond Index GCC return of 6.9%, also extending that fund’s long-term track record of annualized out performance of 2.46% since inception in 2009.
· The increase of our total shareholding in Rasmala Egypt Asset Management to 100%.
· Gross AUM inflows during the year exceeded $300 million, demonstrating strong client interest in our product platform.
· A successful re-domiciliation of a selection of the Group’s funds to Luxembourg, aimed at boosting their appeal to both international and regional third-party distributors and investors.
· The continued roll-out of new products with the launch of the Rasmala Trade Finance Fund during the period with the expectation of rapid AUM growth in 2015.
· An expanded range of new products and stronger client interest is now being supported by an enhanced sales team, as the Group continues to invest in new sales, distribution and marketing channels and partners.
· As lead arranger and book runner for European-based multinational insurance company FWU Group, EIIB-Rasmala successfully completed the second tranche of $40 million of a US$100 million sukuk al-wakala programme. This successful and unique sukuk issuance was rated BBB by Fitch Ratings, named the “Europe Deal of the Year” for 2013 by Islamic Finance News and won the Award of Excellence for Most Innovative Sukuk Structure at the 8th London Sukuk Summit.
· The Group arranged the placement of securities and participated as a cornerstone investor in the Emirates REIT IPO on NASDAQ Dubai.
· Growing client interest demonstrated by a stronger pipeline of investment banking transactions.
Other corporate developments:
· Shareholders approved a tender offer which has now commenced and will close on 6 May 2015.
· Gained authorisation from UK regulators to align regulatory permissions with the operating model.
· EIIB-Rasmala expects to invest about US$1 billion in broad mix of property transactions and grow the leasing and alternatives business to over US$1.5 billion in the next 24 months.
· Specific product initiatives to expand business in Saudi Arabia.
Zak Hydari, Chief Executive of EIIB-Rasmala, commented: “2014 saw the Group deliver another consistent and solid set of annual results. We look forward to 2015 with confidence as we further diversify and grow our product offering and capitalise on the positive business momentum developing across our target markets.”