March 8, 2006
Shamil Bank Posts 34% Higher Profit

Shamil Bank yesterday announced a net profit of US$ 39.1 million for the year 2005 reflecting an increase of 34 per cent over US$ 29.1 million earned in 2004.

Total operating income during the year increased by US$ 11.7 million to US$ 74.2 million registering an increase of 18.8 per cent compared to US$ 62.5 million achieved in the previous financial year. The Bank's consolidated total assets decreased from US$ 1.618 billion to US$ 1.526 billion. The reduction resulted from reclassifying a total of US$ 313 million from unrestricted to restricted funds, in addition to the impact of disposing of the Bangladesh branch during the year.

According to the Bank’s Chief Executive, Mr. Mohamed Hussain, “We revitalized our retail banking and investment banking activities during the year. Our profit grew steadily in the first two quarters and then recorded a considerable increase in the last two, cashing-in on business measures taken earlier on in the year. I view 2005 as a successful year in meeting our short-term objectives and at the same time making satisfactory progress on meeting our long-term objectives".

The net increase of US$ 44 million in shareholders' equity raised it to a total of US$ 338 million registering an increase of 15 per cent for the year 2005, compared to a total of US$ 294 million at the end of the previous year.

The Board of Directors propose a dividend of US$ 0.120 per share which will amount to a total of US$ 27.4 million compared to US$ 0.085 per share paid in 2004. The earnings per share increased to US$ 0.17 from US$ 0.13 compared to the prior financial year.

The share of income from investment accounts (Funds Under Management) increased by 4.2 per cent to US$ 24.2 million while investment income increased by 24 per cent to US$ 6.1 million which included the Bank’s share of income from its main associate in Pakistan, Faysal Bank Limited.

Mr. Hussain further added that, "The Bank has launched a number of retail and investment banking products in 2005 and there will be more products offered to customers this year. Most of these products are unique in their structure and benefits. The Bank is solidly positioned to take on major business deals and transactions in the future and I am confident that it will continue to progress and prosper for the benefit of its customers, stakeholders and shareholders."