November 30, 2005
Shamil Bank Posts US$ 25.6 Million Profit

Shamil Bank yesterday announced a net profit of US$ 25.6 million for the nine months period ended 30 September, 2005 reflecting an increase of 21 per cent over US$ 21.1 million earned in the same period last year. The third quarter of the year alone contributed a net profit of US$ 4.4 million.

Total operating income during the nine months period of the year 2005 increased by US$ 6.89 million to US$ 53.2 million registering an increase of 14.9 per cent compared to 46.3 million achieved during the same period last year. The Bank's consolidated total assets decreased from last year's US$ 1.617 billion to US$ 1.314 billion during the nine months period of this year. The reduction resulted mainly from reclassifying a total of 402 million from unrestricted to restricted funds, in addition to the impact of disposing Bangladesh branch during the year.

According to the Bank’s Chief Executive Mohamed Hussain: “The first 9 months period and specially the 3rd quarter was a phase of business consolidation as well as process engineering of the Bank’s core operation in the areas of investment and retail banking. The performance so far this year demonstrates the Bank’s ability to generate profits for its customers and shareholders despite tough competition and challenging business environment."

The net increase of US$ 18 million in the shareholders' equity raised it to a total of US$ 312.0 million registering an increase of 6.12 per cent in the nine month period of the year 2005, compared to a total of US$ 294.0 million at the end of last year. It is worth mentioning that the Bank paid 8.5 per cent dividend per share, equivalent to a total of US$ 19.5 million has been distributed during the first quarter of this year compared to 7.5 per cent per share paid last year. The earnings per share increased to US$ 0.112 from US$ 0.092 for the same period of last year.

Share of income from investment accounts (Funds Under Management) increased by 34.3 per cent to 19.45 million while investment income increased by 63.5 per cent to US$ 22 million which included the Bank’s share of income from its main associate in Pakistan, Faysal Bank Limited (FBL) and the net capital gain of US $1million resulting from the disposal of the Bank’s branch in Bangladesh.

Mr. Hussain further added that "Strategically, we remained focused on our retail business and investment banking activities which have shown early signs of success and are bringing in results. There are a number of product offerings planned for the rest of this year and early next year. Retail banking is already offering consumer and home financing on very attractive terms to both Bahrainis and expatriates. An all-new-look branch is scheduled to open in Zinj area in December this year. In order to enhance the customer service quality, the information centre has been upgraded to a full fledged hi-tech Call Centre. The new Call Centre will allow the customers to perform a number of transactions over the phone either all by themselves or with the help of a call agent. I am pleased to announce that the Bank is doing very well with the contribution of its quality human resource. I am positive about the future progress and growth of the Bank and hope to continue this increasing trend in profits for the Bank’s customers, stakeholders and shareholders."