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VCBank posts net profit of $4.3m

February 13, 2014

Venture Capital Bank (VCBank), has reported a net profit of $4.3 million for the six months period ended on 31 December 2013 against the corresponding figures of 2012, $5.5m. Total revenues of $10.4m was posted as on 31 December 2013 and $15.2m for the previous year. On quarterly basis, the bank posted a net profit of $1.8m after impairment provisions and fair value loss of $0.85m during the quarter ended on 31 December 2013 compared with $2.5m net profit after impairment provision of $0.14m for the prior quarter. Total revenue for the current quarter was $5.3m, 3 per cent higher over the previous quarter with income from investment banking activities representing the major portion at $4.9m ($4.6m in previous quarter). In keeping with its prudent policy on provisioning, the bank has maintained a collective provision of $4.0m as a cushion against potential impairments. The Chairman of the Board Dr. Ghassan Ahmed Al Sulaiman highlighted the rebound to profitability of the bank and the strong contribution from investment banking activities which forms the bedrock of the bank's activities and of its solid results. The balance sheet has continued to grow with total assets increasing to $247.1m compared to $221.5m on 30 June 2013. Total assets principally comprise shareholders' equity which has grown to $205.5m from $200.5m at 30 June 2013, a 5pc growth on an annual basis. The bank's capital adequacy ratio currently stands at a very robust 42.1pc compared to the regulatory minimum of 12pc, and fiduciary assets under management stands at $957m compared to $925m as of 30 June 2013. Board Member and Chief Executive Officer Abdullatif Mohamed Janahi also highlighted the bank's rebound to profitability with eight consecutive quarters of positive results and stressed that the Bank is moving forward with renewed strength and confidence. The bank has built particular expertise in healthcare, agribusiness, oil and gas, shipping, plus yielding real estate.


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Source: Daily Tribune (Bahrain)

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