Gatehouse Bank plc (Gatehouse), a wholesale Shariah compliant investment bank based in the City of London, has reported a strong set of results for the year ended 31 December 2012. Income for the period was up 153% to GBP 13.3 million (USD 20.3 million). And, in a sign of increasing liquidity and capitalisation, the Bank has reported an operating profit of GBP 4.9 million (7.5 million USD).
Income has been driven by an active real estate strategy, with assets under management now approaching GBP 1 billion (USD 1.5 billion). In 2012, the Bank completed 7 new acquisitions (5 UK, 2 US) and made 2 successful disposals, distributing favourable returns to investors. However, the full year results also demonstrate a steady progression into other core areas of business. Wealth Management income increased by 237% to GBP 2.6 million (USD 4.5 million), while Treasury income grew by 470% year on year to GBP 3.9 million (USD 6.5 million), driven by investments in listed equities and investment grade sukuk markets, including structuring the UK’s first real estate backed Sukuk in December 2012.
Overall activity in 2012 was focused on preservation of capital and maximising returns from strong and recurring income streams on behalf of shareholders. The Bank has achieved a positive reputation and credibility in the UK Real-estate Market with financial institutions and brokers, increasing future pipeline. Gatehouse Bank plc remains a significant net funder to the market, exceeding the higher capital and liquidity requirements heralded by the implementation of Basel III at the start of 2013. With more than 50% of its balance sheet readily convertible into cash or cash equivalents, the Bank now has leeway for further allocation into its various business lines.
Looking ahead, the 5-year business strategy is focused on driving profitability, delivering shareholder value and achieving growth, with the Bank expanding a number of business units including; Real Estate Direct Investments, Real-estate Finance, Wealth Management & Structured products, and Treasury & Capital Markets. The Bank’s 5-year strategy also includes a stronger client service platform with mobile banking technology, as well as entering new geographic regions and markets.
Key to this will be the development of a significant business line in South East Asia via the establishment of a representative office in Kuala Lumpur, authorised by Bank Negara Malaysia. This move follows the successful completion last year of the landmark GBP 165 million (USD 250 million) acquisition of 10 Queen Street Place in London on behalf of the Malaysian Hajj pilgrims’ fund, Lembaga Tabung Haji. As a significant growth market, the new office will offer stakeholder’s access to Asia in a way not previously possible, and will be headed up by former Chief Executive Officer, Richard Thomas, who has relinquished his role and has become Chief Representative for Gatehouse Bank in Malaysia.
“The year 2012 has been a year of phenomenal growth for the Bank, and I am hugely excited that we are continuing this upward trajectory into 2013. Gatehouse Bank is in a good position now to pursue new opportunities to sustain its growth path by utilising its core capabilities and continue to deliver optimum value for our clients. While having a strong balance sheet has enabled the Bank to maintain a high degree of flexibility in securing larger transactions and moving rapidly to take advantage of profitable opportunities as they arise, our global expansion into South East Asia underlines the huge potential of this new market and represents a significant milestone in the lifecycle of the Bank,” Fahed F Boodai, Chairman of the Board of Directors and Interim Chief Executive Officer at Gatehouse Bank plc, said.