News Column

LMC registers net profit of $2.10m

August 6, 2014

MANAMA: Liquidity Management Centre (LMC), a Bahrain-based wholesale Islamic bank, has reported a net profit of $2.10 million for the second quarter ended June 30, as against $2.18m for the same quarter a year ago.

The net profit resulted in a return on capital equivalent to 7.8 per cent annualised while the average interbank rate remains below 0.5pc.

Total operating income for the quarter under review was $5.06m in comparison to $5.26m for the same period last year.

The results demonstrate the bank's ability to continue to perform in relatively challenging conditions whilst continuing with a conservative approach in the current market environment towards impairment provisioning in line with regulatory requirements, chairman Mohammed Ebrahim said.

"The net income achieved was due to astute investment banking activities, specifically opportunistic and perceptive investment returns made from a well-managed portfolio of sukuk and equities with a diversified and balanced investment approach and fee income earned from bank's advisory services," Mr Ebrahim added.

Portfolio-based activities saw growth of approximately 10pc.

The balance-sheet continues to see significant improvement in terms of asset quality and liquidity.

Furthermore, shareholders' equity rose by 3.7pc from $62.96m as of December 31 to $65.27m as of June 30.

"Markets are stabilising from the after-effects of volatility stirred up by expected changes in monetary policy and economic stimulus," chief executive Ahmed Abbas said.

"Although a challenging environment lies ahead, the coming year may continue to present opportunities to alert investors and positive growth may be obtained if volatility levels are taken into account. "Based on the track record and current performance along with continued shareholder support and experienced management team, we believe that we are well prepared for the coming year," he added. LMC's shareholders include Bahrain Islamic Bank, Dubai Islamic Bank, Islamic Development Bank and Kuwait Finance House Investment Company, a wholly-owned subsidiary of Kuwait Finance House.

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Source: Gulf Daily News (Bahrain)

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