Total revenues increased 7 fold to $11.1 million, with income from investment banking activities rising significantly to $10.4 million, compared with $1.45 million and $854000 respectively for the corresponding period in 2011. Total expenses reduced slightly to $3.3 million from $3.8 million for the corresponding period in the previous year. Total assets stood at $212.2 million on 31 March 2012, up from $198.5 million at the end of 2011, while shareholders’ equity grew 4.5% to $187.8 million from $179.7 million at year-end 2011.
Chairman of VCBank, Dr Ghassan Al Sulaiman highlighted the significance of the strong contribution to total revenues from investment banking activities, which increased dramatically by 11 times to $10.4 million from $854000 for the corresponding period in 2011.
“These excellent results, despite continued challenging market conditions, confirm the validity of our MENA-focused strategy and differentiated venture capital and private equity-based business model. Such a promising start to the new year bodes well for the Bank’s prospects for the rest of 2012 and our commitment to provide shareholders and investors with acceptable rates of return.”
“Strongly capitalised at $ 250million, with liquid assets of $14 million, and currently unleveraged, VCBank is a financially strong and solid institution. At the end of March 2012, our capital adequacy ratio was 39.6 per cent, considerably higher than the minimum requirement of the Central Bank of Bahrain, while assets under management had risen by 12% to US$ 834 million compared to $745 million as at 31 March 2011.”
VCBank also announced its new elected board of directors led by Dr Ghassan Ahmed Al Sulaiman, Chairman and the board has been ratified by shareholders at the bank’s recent annual general meeting.
“Our results underline the success of our strategic focus on key sectors in which we have built particular expertise, such as healthcare, agribusiness, oil and gas, and shipping; and on more economically and politically stable markets in the MENA region.
By drawing upon our investment track record, and the enduring relationships we have developed with our investor base, we were successful in arranging and placing two significant deals. The first was SHIPCO, a $33.5 million shipping capital lease project, entailing a capital lease through sale and leaseback on a bareboat basis of three one-year-old Supramax 57,000 dwt bulk carriers. The lessee is an international provider of marine transportation services, currently operating its own fleet of seven Supramax vessels. It is also the world’s largest transporter of rice, which is a staple, recession-proof consumable commodity,” board member and Chief Executive Officer, Abdullatif Mohamed Janahi, said.
In a second deal valued at $93.7 million, VCBank took an indirect investment in 65 per cent of the equity of Göknur Foods Import Export Trading & Distribution Company in Turkey. Established in 1993, Göknur is the largest fruit juice concentrate and fruit puree producer and exporter in Turkey, with a 50 per cent market share. Politically and socially stable, Turkey has posted a remarkable economic performance over the past eight years. Underlying the successful placement of these deals is our experience in the regional agribusiness and shipping sectors, marked by key investments such as Jordan Al Abyad Fertilizers and Chemicals Company (JAFCCO), and Lemissoler Maritime Company.
“The Bank’s financial performance has noticeably improved with the achievement of this strong result with a net profit of US$ 8 million for the first quarter of 2012, which confirms the strength of the Bank’s foundation. The Bank is on target to achieve an improvement in revenue during the second quarter and reduced administrative expenses and operating costs, reflecting the Bank’s new strategy and organization structure with a focus to maintain liquidity and build a solid base for the rights of shareholders.”