Shamil Bank, a leading Bahrain-based Islamic commercial bank and a wholly-owned subsidiary of Ithmaar Bank, said today that, for the second quarter ended 30 June 2009, it has earned a net profit of US$237 thousand. For the six month period ended 30 June 2009, Shamil Bank’s net profit was US$6.104 million. Last year, for the same six month period, Shamil reported a net profit of USS47.2 million which included significant one-off investment-related earnings.

Mohamed Abdulla Abdulaziz Al-Angari Chairman

The results were announced by Shamil Bank Chairman, Sheikh Mohamed Abdulla Abdulaziz Al-Angari, after the Board of Directors approved the financial statements.

Al-Angari said “For the second quarter ended 30 June 2009, Shamil had earned a net profit of US$6.610 million (first quarter 2009 was US$6.275 million) before provision, minority interest and taxation. However, due to the impairment provision that was prudently booked for an exposure relating to two family businesses in Saudi Arabia, Shamil is reporting a net profit of US$237 thousand for the second quarter ended 30th June, 2009,” he said.

Fee and commission income from the documentary credit for the second quarter of 2009, amounting to US$907 thousand, was 62 percent more than the US$558 thousand earned in the first quarter of 2009. This reflects the Bank’s expansion in trade finance related as well as international banking activities.

Faisal Mansoor Al-Alwan Chief Executive

“Total assets had increased, from US$2.884 billion as at 31 December 2008, to US$3.101 billion, as at 30 June 2009. For the same period, Murabaha financing (Islamic loan financing) had increased by nine percent from US$1.048 billion to US$1.141 billion, and commodity placements with banks, financial and other institutions also increased from US$1.043 billion to US$1.160 billion, a reflection on the Bank’s high liquidity,” said Shamil Bank Chief Executive, Faisal Al Alwan.

“Shamil Bank’s financial results for the First Half of the year show US$6.1 million in net profits, a further improvement in liquidity and a significant increase in assets,” said Al Alwan. “These achievements, which were made despite challenging financial and economic conditions, are a reflection on the Bank’s ability to deliver consistently positive results,” he said. The Bank also continued to expand in its international banking activities.