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Liquidity Management Centre (LMC) announces a net profit of USD1.26 million for the First Quarter Ended 31st March 2015

The Board of Directors and Mr. Ahmed Abbas, Chief Executive Officer of Liquidity Management Centre “LMC” (wholesale Islamic Bank) are pleased to announce the results for the first quarter ended 31st March 2015 with a net profit of USD 1.26 million compared to USD 0.865 million for the same period ended March 2014. The net profit resulted in a return on capital equivalent to 9.4% annualized while the average interbank rate remains below 0.5%. Total operating income recorded an amount USD 3.54 million in comparison to USD 2.65 million for the same period in 2014. 

These results undoubtedly demonstrate the bank’s ability to continue to perform in relatively challenging conditions whilst continuing with a conservative approach in the current market environment towards impairment provisioning in line with regulatory requirements. The net income achieved was due to opportunistic and perceptive investment returns made from a well managed portfolio of Sukuk and equities with a diversified and balanced investment approach.  The portfolio based activities witnessed an approximately 30% reduction comparing to 31st December 2014 record. On the other hand, the total liabilities decreased by 35.82% from USD 134.52 million as of 31st December 2014 to USD 86.34 million. The Bank’s balance sheet continues to see significant improvement in terms of asset quality and liquidity. Furthermore, the Shareholders’ equity rose by 1.95% from USD 67.48 million as of 31st December 2014 to USD 68.80 million as of 31st March 2015. 

The regional stock market continues to be volatile amid volatile commodity prices. Although a challenging environment keep on lies ahead, this year may continue to present opportunities to alert investors and positive growth may be obtained if volatility levels are taken into account. 

Based on the Bank’s track record and current performance along with the continued Shareholder support and experienced management team, we believe that we are well prepared for the coming challenges in this year. 

Finally, we take this opportunity to thank the Shareholders namely Bahrain Islamic Bank, Dubai Islamic Bank, Islamic Development Bank and Kuwait Finance House Investment Company (a wholly owned subsidiary of Kuwait Finance House - Kuwait), our strategic partners, alliances and team members for their continued support.