MANAMA: Venture Capital Bank (VCBank), reported a net profit of $5.3 million for the nine months period ended 31 March 2014 compared with $7.2 million for the corresponding comparative period in 2013, from total revenues of $14.5 million for 31 March 2014 and $20 million for 31 March 2013 respectively.
On a quarterly basis, the bank posted a net profit of $1million after fair value loss of $0.02 million during the quarter ended 31 March 2014 compared with $1.7 million net profit after impairment provision of $0.39 million for the prior quarter.
Total revenue for the current quarter was $4.1 million, with income from investment banking activities representing the major portion at $3.2 million. The Chairman of the board Dr. Ghassan Ahmed Al Sulaiman highlighted the strong contribution from investment banking activities which forms the bedrock of the Bank’s activities.
The balance sheet remained strong with total assets at $242.6 million compared to $221.5 million at 30 June 2013. In keeping with its prudent policy on provisioning, the bank has maintained a collective provision of $4 million as a cushion against potential impairments.
Remaining largely unleveraged, total assets principally comprise shareholders’ equity which has grown to $207 million from $200.5 million at 30 June 2013, a 3% growth on an annualized basis.
The bank’s capital adequacy ratio remains strong at a robust 42.1% compared to the regulatory minimum of 12%, and fiduciary assets under management stands at $965 million compared to $925 million as at 30 June 2013.
Board Member and Chief Executive Officer Abdullatif Mohamed Janahi also highlighted the bank’s rebound to profitability with ten consecutive quarters of positive results.
He attributed the success to the focus on the directives of the board of directors towards implementing the strategic plan, and the valued support rendered by the shareholders and their stance beside the bank which had a positive impact in overcoming the aftermath of the global economic crisis and the Arab spring.
He also highlighted that the Bank is studying several projects in active sectors including healthcare, education and infrastructure with the aim to achieve sustained profitability and foster economic growth in the region whilst minimizing risk.
The bank has built particular expertise in healthcare, agribusiness, oil and gas, shipping, plus yielding real estate; and in the more economically and politically stable markets of the MENA region in addition to Turkey and the United Kingdom.
“The bank will continue to target improvements in revenue growth and operating costs whilst maintaining adequate liquidity to build a solid base for sustained profitability and thus generate good returns for our shareholders and investors. The Bank has an investor base that has been very supportive and we are confident that VC Bank will continue to build on this excellent performance into the future with the guidance and support of the Central Bank of Bahrain and the Board of Directors and by continuing to adapt and capitalize on changes and opportunities in the market,” Janahi, added.