BLME Holdings plc today announced its half year financial results to 30th June 2014. BLME reported an operating profit before tax for the group of GBP 5.1 million.
The Group increased its operating profit before impairment charges by 177 per cent in the first half of 2014. There was strong operating income, margin income and profit growth to 30th June 2014, particularly in corporate banking. This was reflected in a 13 per cent increase in total assets compared with 30th June 2013. It is also pleasing to note that Net Fee Income increased by 84 per cent to GBP 2.2 million, reflecting a more mature product offering, and increased earnings diversification. Treasury have succeeded in diversifying the bank's liability base with 47 per cent of deposits being customer deposits.
Investment in product development and personnel is fundamental to the bank's future success. These costs, along with the implementation of new technology solutions that will support growth and increase efficiency, resulted in a 16 per cent increase in operating expenses. Despite these investments the overall cost to income ratio has continued its downward trend.
During the period there was a 32 per cent increase in group operating income from GBP 25.3 million to GBP 33.4 million for the six month period ended 30th June 2014. The balance sheet increased from GBP 1.1 billion to GBP 1.3 billion. BLME's capital adequacy ratio remains within the impending Basel III standards.
BLME has posted consistent annual growth in Operating Profit before Impairments since 2007. From inception with a project team based between London and Kuwait, BLME has emerged as one of the world's most respected Islamic banks with more than 100 staff in London and a representative office in Dubai. With a capital base of GBP 250 million and a balance sheet of GBP 1.3 billion, BLME is demonstrating considerable progress, underlining the validity of the original business plan.
Adel Al Majed, Chairman of BLME, commented on the results: "This is my first interim report as Chairman of BLME Holdings plc and I am pleased with the progress and performance that the Group has made during the first half of 2014. The Group's half year performance demonstrates the viability of our business model and the Bank continues to be recognised as an industry leader receiving several high level industry awards. BLME's Corporate Banking division continues to service the UK Mid-Market's financing needs while our Wealth Management arm focuses on the GCC region. BLME's future looks very promising."
Humphrey Percy, CEO of BLME, commented on the results: "With business operations in both the UK and the GCC, BLME has made significant progress in the first half of the year, building sustainable relationships in our key markets. I am further encouraged by our transaction pipeline which is supported by a strong liquidity position and a robust balance sheet. I am confident of BLME's ability to deliver sustainable results consistently and grow our business in the medium and long terms through the provision of competitive and innovative financial products to our target markets."