News Column

VCBank net profit surges 84 per cent to $15 million

August 6, 2014

MANAMA: Venture Capital Bank (VCBank) has reported an 84 per cent increase in net profit at $15 million for the financial year ended June 30 when compared with the previous year.

This implies a return of 8.3pc on net paid-up capital.

The Bahrain-based Islamic investment bank reported total income of $23.7m for the year as against total income of $15.3m for the prior year.

The results recognise fair value losses and impairment allowances totalling $4.6m in the year under review, as against fair value losses and impairments of $10m in the year ended June 30 last year. Total balance sheet assets as at June 30 amounted to $249m, a 13pc growth over the year with the balance sheet remaining unleveraged but for a modicum of $10m medium-term debt.

Shareholders' equity has grown by 8pc to $216.4m as at June 30 from $200.5m.

Total assets under management have also grown 8pc to $1.24bn now compared with $1.1bn as at June 30.

Net profit and total revenue for the quarter ended June 30 amounted to $9.7m and $12.4m respectively as against $1m and $4.3m respectively for the same quarter of the prior year.

The bank's capital adequacy ratio currently stands at 46.5pc, as against the Central Bank of Bahrain's minimum requirement of 12pc.

VCBank chairman Dr Ghassan Ahmed Al Sulaiman said this marks almost three years of excellent performance by the bank with a demonstrated commitment to ethical banking and strong corporate governance.

"These encouraging results have been achieved despite the very challenging conditions in the region and the investment banking sector and confirm the success of our plans and strategies that included an organisational restructuring and a refocusing on growth sectors in the region and globally," added Dr Ghassan.

Board member and chief executive Abdullatif Mohamed Janahi said the bank is well-capitalised with a strong asset base and an active pipeline of deals, and looks to the years ahead with strength and confidence.

"These results affirm that the bank is moving in the right direction towards achieving strong growth and underline the success of our strategic focus on key sectors in which we have built particular expertise.

"These include healthcare, agribusiness, oil and gas, and shipping and in the more economically and politically stable markets in the Middle East and North Africa region," he added.

"The year under review has witnessed the conclusion of a number of solid deals that have strengthened our current investments portfolio and boosted our market reputation for attractive and innovative investment offerings.

"The bank is also on target to achieve further improvements in revenue growth and reduced operating costs in line with the strategy that focuses on generating and sustaining profitability, maintaining adequate liquidity and building a solid foundation for providing acceptable returns to our shareholders. "We are confident that VCBank will be able to continue to build on this excellent performance by continuing to adapt and capitalise on changes and opportunities in the market," Mr Janahi said.

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Source: Gulf Daily News (Bahrain)

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