LMC registers net profit of $2.25m

04/08/2015 08:29 AST

Manama: Liquidity Management Centre (LMC), a Bahrain-based wholesale Islamic bank, yesterday reported a net profit of $2.25 million for the first half of this year as against $2.1m for the same period last year.

A statement by the bank said the net profit resulted in a return on capital equivalent to eight per cent annualised while the average interbank rate remains below 0.5pc.

Total operating income for the period was $5.79m as against $5.06m for the same period last year. LMC’s net profit for the second quarter was $990,000 as against $1.23m for the same period last year.

Portfolio-based activities saw a 36pc reduction from December-end level whereas total liabilities decreased by 33pc from $134.52m as of end-December to $89.9m as of end-June.

The balance sheet continues to see significant improvement in terms of asset quality and liquidity. Shareholders’ equity rose by 3.4pc from $67.48m as of end-December to $69.8m as of end-June.

LMC chief executive Ahmed Abbas said the results demonstrate the bank’s ability 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.

“The net income achieved was due to perceptive investment returns made from a well-managed portfolio of sukuk and equities with a diversified and balanced investment approach,” he said.

According to Mr Abbas, the regional stock market continues to be volatile amid volatile commodity prices. “Although a challenging environment lies ahead, this year may continue to present opportunities to alert investors and positive growth may be obtained if volatility levels are taken into account,” he said.

“Based on the track record and current performance, we believe that we are well prepared for the coming challenges in this year,” he added.

LMC’s shareholders are Bahrain Islamic Bank, Dubai Islamic Bank, Islamic Development Bank and Kuwait Finance House Investment Company, a wholly-owned subsidiary of Kuwait Finance House.

Gulf Daily News