MANAMA: Venture Capital Bank (VCBank) reported a net profit of $9.3 million for the year ended June 30 compared with $14.1m for the previous year, representing a decrease of 34 per cent over the prior year.
In the last quarter of the financial year, the bank earned a net profit of $16m, compared with $12.1m in the corresponding quarter of the prior year, representing an increase of 32pc.
The regional investment bank said the results mark almost five years of excellent performance with a commitment to ethical banking and strong corporate governance.
Total revenue more than doubled to $36.6m compared with $16.5m the previous year, while total expenses increased 28pc to $16.2m versus $12.6m.
Net income from investment banking activities was the largest contributor to growth at $31.1m compared with $13.7m a year earlier.
These results are after recognising fair value losses and impairment provisions of $20.5m, which were booked based on investment valuations and impairment assessments conducted periodically.
Total balance sheet assets amounted to $334.3m as of June 30 compared with $250.8m at the end of the previous year, representing a growth of 33pc, and shareholders’ equity stood at $224.3m versus $219.5m, a growth of 2.2pc.
The capital adequacy ratio was 19.8pc, well above the 12.5pc requirement of the Central Bank of Bahrain.
Total fiduciary assets under management increased to $1.16 billion as of June 30 compared with $1.02bn at the end of the previous year, a growth of 13.7pc.
VCBank chairman Abdulfatah Marafie said the bank continues to rank among the most active investors in the region, with a strong pipeline of deals and proposed exits.
“Looking ahead, fiscal year 2017 will be another highly-challenging year, marked by continued oil price and market volatility; further economic and fiscal reforms by Mena governments to diversify revenues; and continued geopolitical turmoil in certain parts of the region. However, based on our strong financial and business performance in financial year 2016, we have a cautiously optimistic outlook for VCBank in the immediate future,” he added.
Board member and chief executive Abdullatif Janahi said the results prove the success of business activities during the year.
“Net income from investment banking grew substantially to $31.1m from $13.7m in financial year 2015, reflecting a particularly busy and successful year in terms of investment transactions,” he added.
VCBank structured, offered and placed four new investments in financial year 2016 with a total capital of approximately $200m from investors which included forays into the US multifamily housing sector and the Turkish café market.
&uuid=(email))