Gatehouse Bank plc (Gatehouse), a wholesale Shariah compliant investment bank based in the City of London, has announced a strong set of interim results for the six months ending 30 June 2012. Total profits of more than $3.2 million exceeded projections by nearly 10%, indicating that the bank’s business and operating model is maturing out of its start-up phase.
Meanwhile income for the same six months amounted to £6,121000 compared to £1,719000 for the comparative period, an increase in excess of 250%, demonstrating that the Bank is now well on its way towards meeting its 2012 financial plan, delivering substantial growth and wealth preservation on behalf of its investors.
Income has been driven by an active real estate strategy, which generated a year to date income of more than $3.1 million. Despite the difficult economic environment, the bank has continued to build on a track record of over $890 million real estate acquisitions since its FSA certification in 2008, making it one of the most active non-institutional investors in the market. Recent high profile deals include the $92 million acquisition of the North Sea Office headquarters of Petrofac in Aberdeen; the acquisition of a $155 million portfolio of 20 industrial properties in the US; and the $32 million acquisition of BT Telecom’s regional office in West Bromwich. These, together with two further acquisitions made through the Bank’s Sterling UK Real Estate Fund, completed a very busy six months for the Bank.
As part of a diversification strategy building on the success of the real estate business, the beginning of 2012 also saw Gatehouse launch a core Shariah compliant Wealth Management business to focus on the creation of relevant products and superior client relationship management services.
“This is an extremely encouraging set of results, and the strength of our half year operating profits places Gatehouse Bank in an ideal position to maintain our ongoing growth trajectory into the remainder of 2012. We have a strong and sustainable business model and the board is pleased to see the Bank delivering on its shareholders strategies. The reporting of a strong set of operating profits ahead of the financial budget demonstrates a sustainable and profitable core business model and represents a significant milestone in the lifecycle of the Bank,” Fahed Boodai, Chairman of the Board of Directors at Gatehouse Bank, said.
“Capital preservation remains a key focus for the bank in 2012 and our priority is to maximise income from strong and recurring income streams for the benefit of our investors. By following a risk sharing model and co-investing in transactions alongside our investors, not only are we able to concentrate on generating income and wealth preservation, but are also best able to support the needs of businesses through a tangible asset base. It is also notable that this set of results has been achieved while the Bank is still in the process of optimally deploying and allocating its balance sheet. The Bank is investing in strong and robust risk measurement to make sure that further allocation of the balance sheet is careful and measured. The Bank now has a structure and model that will ensure an increase in profitability as and when it further leverages its balance sheet,” Richard Thomas OBE, Chief Executive Officer of Gatehouse Bank, said.