August 8, 2006
80.3% Net Income Growth of Shamil Bank

Shamil Bank achieves a record net income of U.S.$ 38.23 million during the 1st Half of 2006

Shamil Bank announced a record net income of US$ 38.23 million for the six months ended 30 June 2006, reflecting an increase of 80.3 per cent over US$ 21.21 million earned in the same period last year. As a result, the earnings per share increased to US$ 0.17 from US$ 0.09 for the same period last year. The increase in net income is attributed to substantial growth in earnings from investment activities and income from funds under management.

The Bank's consolidated total assets increased by US$ 88 million to US$ 1.61 billion as at 30 June 2006 from US$ 1.52 billion as at 31 December 2005. On the liability side, unrestricted investment accounts also increased by 7.4% from US$ 639.6 million at the end of December 2005 to US $ 687 million at 30 June 2006, reflecting customers’ increased confidence in Shamil Bank’s products and services.

Mr. Mohamed Hussain, Chief Executive of Shamil Bank, expressed his full satisfaction with the excellent results during the first six months of 2006. Commenting on the exceptional performance, Mr. Hussain said: “The Bank’s performance has been extremely good in all areas of businesses. Underlying revenue growth for the half-year continued to be strong. The strong performance is reflective of the Bank’s success in implementing its 3 year strategic plans in all areas of our business comprising Retail Banking, Corporate Banking, Investment Banking and Private Banking. The sustained growth in profits over the last five years is increasingly evident of the Bank’s measured approach towards capitalizing on the business opportunities in the local, regional and international markets. The Bank has also been able to benefit from the prevailing optimistic economic climate in the region as well as in the Pakistan market through its associates, Faysal Bank Ltd. and Meezan Bank Limited.”

Continuing on the results, Mr. Hussain said that: “further growth in business is expected in the future. We will also leverage the success of our products and enhanced services to help acquire new customers and strengthen relationships with our existing customers. We are now in a better position to invest in areas of growth and at the same time capitalize on our resources and continue to improve our operating efficiency. Shamil Bank continues to successfully discharge its economic and social responsibilities as a local Islamic financial institution. We are proud of our workforce that always makes achievement of such good results possible. With the blessing of Allah, our strategy for the remaining part of the year is to enhance our position in the local market and leverage our retail franchise.”