International Investment Bank (IIB), a globally focused investment bank based in the Kingdom of Bahrain operating in line with Shari'ah principles, today announced its results for the 3rd Quarter of 2009.
Total Income for the third quarter of 2009 was US$ 1.3 million, mainly derived from investment banking fees generated from the structuring, underwriting and placement of new investments, together with profit earned on Murabaha funds placed with financial institutions and corporate clients. Total Expenses reduced to US$ 1.9 million in the period, reflecting the lower business activity as compared to the third quarter of 2008. The Bank incurred a Net Loss of US$ 0.6 million compared to a Net Income of US$ 0.8 million earned in the same period of 2008. The lower net income is attributed mainly to fewer investment banking transactions as the Bank has intentionally scaled down its investment activities as a measure of prudence in the current market situation and lower profit rates applicable to bank placements.
The Net Loss for the nine month period was US$ 2.0 million compared with Net Income of US$ 12.0 million for the same period last year.
Total Assets at 30 September 2009 are US$ 191.4 million compared to US$ 218.7 million at year end 2008. The decrease arises following the payment in 2009 of the 2008 cash dividend of 7% and fair value write downs on several available for sale investments.
Capital Adequacy Ratio was 64% as at 30 September 2009 which is more than five times the Central Bank of Bahrain's minimum requirement of 12%, demonstrating IIB's capacity to significantly increase its investment portfolio in the future from a regulatory capital perspective.
Commenting on the Bank's results, His Excellency Mr. Saeed Abdul Jalil Mohammed Al Fahim, Chairman of IIB, said: "Trading conditions in the third quarter of 2009 continued to be very challenging for investment banks. We have seen some positive indicators concerning investors' confidence and availability of funding but do not expect a significant improvement in market conditions until the first quarter of 2010. Meanwhile, the Bank has continued its strategy during the third quarter of 2009 of investing in selective opportunities and managing its liquidity. IIB's asset position demonstrates strength with 43% of Total Assets at 30 September 2009 represented by cash, bank balances and short-dated Murabaha placements with financially-sound regional banks plus a further 9% invested in regional listed equities, giving a total liquidity position of 52%."
"The Bank has no "Banks Borrowings" thus is not under any liquidity pressure," Mr. Al Fahim added.
Referring to the results, Mr. Aabed Al-Zeera, CEO and Board Member said: "Since inception of the Bank, our strategy has been to structure and market to clients a range of attractive investment offerings in the manufacturing, financial, energy and real estate sectors in various countries. During the third quarter of 2009, work has commenced on IIB's recently acquired project to develop a state-of-the-art "commercial" real estate complex in Bosnia and Herzegovina and a well positioned "residential" project in Saudi Arabia. In addition, several deals have been evaluated for product launches expected in early 2010. IIB's balance sheet is strong, evidenced by no borrowings or off balance sheet commitments."
For full details on IIB's financial results, please see the 'Financial Section' on IIB's website at www.iib-bahrain.com.
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About International Investment Bank
International Investment Bank B.S.C. (c) (IIB) was incorporated in Bahrain in October 2003 as an Islamic investment bank, with an authorized capital of US$ 200 million and a paid up capital of US$ 43 million. In December 2007, IIB concluded a combined rights issue and private placement offering that has increased the issued share capital to US$ 110 million and total shareholders' equity to US$ 188.3 million. The Bank's shareholders are high net worth individuals, business houses and institutions from the GCC states. The Bank undertakes two core business activities - private equity and real estate - and aims to offer its clients an internationally diversified range of investments generated through its network of strategic partnerships. It has been involved in investments worth more than USD 2.5 billion since its inception.
For more information on IIB, please visit: www.iib-bahrain.com
Media Contact:
Ghizlane Rahali
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Tel: (+973) 17565086
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© Press Release 2009
