IIB Bank in Bahrain q4 results
International Investment Bank (IIB), a globally focused investment bank based in Bahrain operating in line with Shari'ah principles, today announced it's results for the year ended 31 December 2008.
Total Income for the year 2008 is US$ 30.1 million, mainly derived from investment banking fees generated from the structuring, underwriting and placement of new investments despite the difficult market conditions. Net Income for the year is US$ 13.5 million. Net income earned in the fourth quarter of 2008 is US$ 1.5 million, compared to US$ 7.1 million in the same period of 2007; the decrease is mainly attributed to the share of IIB in the loss of one UAE based associate company engaged in real estate investments.
Total Assets at 31 December 2008 are US$ 218.7 million compared to US$ 257.3 million at year end 2007. The decrease is mainly attributed to the payment in 2008 of payables to investors and payables for deals totaling US$ 32.9 million recorded as other liabilities at 31 December 2007. Following the successful share issuance in late 2007 that netted US$ 138.9 million, IIB has increased its investment portfolio in 2008 by US$ 26.5 million or 72.6% to US$ 62.9 million, through the selection of regional equities.
Capital Adequacy Ratio under Basel II was 87% as at 31 December 2008 versus the Central Bank of Bahrain's minimum requirement of 12%, demonstrating IIB's ample capacity to 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: "The Bank has emerged relatively unharmed from the global financial crisis largely through prudent investing, strict liquidity management and capital conservation strategies. IIB's asset position demonstrates core strength with 55% of Total Assets represented by cash and short dated murabaha placements with financially sound banks and a further 15% invested in regional listed equities, for a total 70% liquidity position. This strength, coupled with the fact that it had no borrowings, off balance sheet commitments or other exposures throughout 2008, enables IIB to take advantage, at a "measured pace", of new opportunities at attractive valuations as and when these arise, although the selection and profitable execution must be subject to heightened due diligence in the forecast market environment."
Commenting on the transactions completed in 2008, Mr. Aabed Al-Zeera, CEO and Board member commented: "Our strategy has been consistently to build solid organic and sustainable growth in the manufacturing, financial, energy and real estate sectors in MENA, CIS countries and Europe. During 2008, the fifth year of full operations, IIB has concluded the sell down of two investment offerings that were carried over from 2007. These comprise the real estate development project located in Abu Dhabi and the stake in a leading commercial bank based in Azerbaijan. IIB has successfully structured four investment transactions in 2008, two of which were placed with investors during the year and the remaining two are being carried forward to 2009 for placement with investors only if the economic environment and market conditions improve during 2009."
Mr. Al-Zeera continued: "The first investment offering, a significant stake in ARTES, a leading Nissan/Renault vehicle distributor located in Tunisia, has been fully placed during the year. The second offering, also fully placed during 2008, is a stake in a green-field sugar plant to be constructed in the Kingdom of Bahrain."
The Board is proposing to distribute a cash dividend of 7% for 2008, subject to shareholder approvals, while retaining US$ 5.8 million to further strengthen the Bank's capital base.
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 in excess of US$ 200 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
Associate -Corporate Communications and PR
Tel: (+973) 17565086
Fax: (+973) 17565050
Email: corpcom@iib-bahrain.com
grahali@iib-bahrain.com
© Press Release 2009
