Shamil Bank reported yesterday that it had made US$66.8 million in total income for 2008 despite the global financial crisis. The announcement was made by the Shamil Bank Chairman, Shaikh Mohamed Abdulla Abdulaziz Al Angari, following a meeting of Bank’s Board of Directors.

The Bank’s net profit in 2008 amounted to US$22.8 million. This net profit achievement is made all the more significant by the fact that, in the last Quarter of 2008, the Bank sustained US$16.3 million in losses. Shaikh Al Angari, who attributed the losses to the financial performance of a Shamil Bank subsidiary, as well as the provisions the Bank made for asset write-downs, said he was pleased with the overall 2008 performance and noted that the Bank boasts high levels of liquidity, a particularly important fact in current conditions.

“2008 was a particularly challenging year for the world’s banking and financial institutions,” said Shaikh Al Angari. “The fact that we have achieved US$22.8 million in profits despite the unprecedented financial crisis is testimony to the resilience of our operations, and we have every reason to look ahead with confident optimism,” he said.

Shamil Bank’s total assets also increased by 41 percent from US$2 billion as at 31 December 2007 to US$2.9 billion as at 31 December 2008. Over the year, commodity Murahabas (bank placements) increased significantly from US$424 million of US$1.043 billion.

In 2008, the value of Shamil Bank’s Murabaha Financing (loans and advances) activities also increased from US$807 million to US$1.048 billion. This significant increase is a reflection on the growing success of Shamil Bank’s core retail and corporate banking activities.

Shamil Bank Chief Executive Faisal Al Alwan, described the Bank’s performance as “encouraging” and noted that, in 2008, the Business Model had changed completely and that the Bank had re-structured its holdings.

“In 2008, Shamil Bank doubled its 50 percent stake in Faisal Private Bank (FPB), the first Swiss bank exclusively dedicated to innovative wealth and asset management in accordance with the principles of Islamic finance,” said Al Alwan. “We also acquired a 34 percent stake in Solidarity, one of the largest takaful (Islamic insurance) companies in the world,” he said.

“During the past year, we realigned our focus back to retail and corporate banking while continuing our investment banking activities,” said Alalwan. “We have also launched a new business line, international banking, which focuses on servicing large companies and government institutions in the GCC and MENA regions. This has created tremendous new opportunities with particularly low risk clients and an emphasis on trade finance related activities,” he said.

“These changes have contributed, directly, to helping us report US$22.8 million in profits during 2008,” said Al Alwan. “More importantly, they also set the stage for us to capitalise on the unique opportunities that have been created by the global financial crisis,” he said.