News Column

VCBank posts $5.3m net profit

May 15, 2014

MANAMA: Venture Capital Bank (VCBank) has reported net profit of $5.3 million for the nine months ended March 31 this year as against $7.2m for the corresponding comparative period last year.

Total revenues were $14.5m as against $20m earlier.

The bank posted a net profit of $1m after fair value loss of $0.02m during the third quarter, compared with $1.7m net profit after impairment provision of $0.39m for the prior quarter.

Total revenue for the quarter was $4.1m, with income from investment banking activities representing the major portion at $3.2m.

Chairman Dr Ghassan Al Sulaiman said the strong contribution from investment banking "forms the bedrock of the bank's activities".

The balance sheet remained strong with total assets at $242.6m as on March 31 compared with $221.5m as on June 30 last year.

The bank has maintained a collective provision of $4m as a cushion against potential impairments.

Remaining largely unleveraged, total assets principally comprise shareholders' equity which has grown to $207m from $200.5m at June 30 last year, a 3pc growth on an annualised basis.

The capital adequacy ratio remains strong at 42.1pc compared with the regulatory minimum of 12pc, and fiduciary assets under management stand at $965m compared with $925m as of June 30 last year.

Board member and chief executive Abdullatif Janahi said the bank has now seen 10 consecutive quarters of positive results.

The bank is studying several projects in sectors like healthcare, education and infrastructure aimed at achieving sustained profitability and fostering growth in the region whilst minimising risk, he said.

"The bank will continue to target improvements in revenue growth and operating costs whilst maintaining adequate liquidity to build a solid base for sustained profitability and thus generate good returns for shareholders and investors," Mr Janahi added.

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Source: Gulf Daily News (Bahrain)

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