LMC's Chairman Mr. Emad Al-Monayea and Mr. Ahmed Abbas Chief Executive Officer are pleased to announce the first quarter results with a net profit of USD .511 million after the impairment provision of USD .146 million comparing to net profit of USD .361 million for the same period in 2011. The total operating income has recorded an amount of USD 1.96 million in comparison to USD 2.1 million for the same period in 2011. This quarter's net operating profit represents 5% per annum return on Capital while the average interbank rate remains below 0.5%. These results undoubtedly demonstrate the bank's ability to perform while adopting a conservative approach in the current market environment by taking additional provisions.
This achievement was due to sound and well managed portfolio of Sukuk and equities and diversified investment approach. The prudent operating results were further enhanced by controlling operating expenses. In terms of the bank's balance sheet, total assets witnessed a decrease of 36.4% from USD 184.7 million during December 2011 to USD 117.4 million in first quarter of 2012. Alternatively, shareholders' equity increased by 1.3% during the same period.
Looking forward, though difficult and challenging environment lay ahead, we believe that the market has witnessed a large correction especially for the GCC capital markets where most of the adverse market conditions have been priced in. This year may continue to carry opportunities to alert investors and positive growth may be obtained if volatility levels are taken into account. Many indicators are currently attesting to a positive outlook for GCC; for example, Oil prices stabilize well above the $100 per barrel, significantly above the average price anticipated by many GCC fiscal budgets for 2012. Accordingly, we remain hopeful but cautious at the same time.
Given our strong Shareholder support, track record and experienced team, we believe that we are well prepared for the remainder of this challenging year.
We thank our shareholders (Bahrain Islamic Bank, Dubai Islamic Bank, Islamic Development Bank, Liquidity Management House - a wholly owned subsidiary of Kuwait Finance House - Kuwait), strategic partners, alliances and team members for their support during these extraordinary times and we will do all we can to positively contribute to our industry's future.
© Press Release 2012
