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Liquidity Management Centre (LMC) announces 6.32% return on share capital for the year ended 31st December 2015

Mr. Mohammed Hassan, Chairman of the Board of Directors and Mr. Ahmed Abbas, Chief Executive Officer of Liquidity Management Centre (“LMC”) are pleased to announce the results for the year ended 31st December 2015 with a net profit of USD 3.56 million compared to USD 4.22 million for the year ended December 2014; a return on capital equivalent to approximately 6.32% while the average 1 year interbank rate remains below 1.2%. Net profit for the fourth quarter (3 months ended 31 December 2015) stood at USD 0.37 million versus USD 0.85 million for the same period in 2014. Total operating income recorded an amount USD 10.10 million in comparison to USD 10.11 million for the year 2014.  

Despite the decrease in the net profit recorded, still these results undoubtedly demonstrate the bank’s ability to perform in 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 astute investment banking activities, specifically opportunistic and perceptive investment returns made from a well managed portfolio of Sukuk and equities with a diversified and balanced investment approach and fee income earned from bank’s advisory services.  After the profitable sukuk sales deals executed during the year 2015 and settling up bank’s short term obligations, the investment portfolio based activities witnessed a reduction of approximately 31% while the Bank’s balance sheet continues to see significant improvement in terms of asset quality and liquidity. Furthermore, the Shareholders’ equity grew by 5.2% from USD 67.48 million as of 31st December 2014 to USD 70.97 million as of 31st December 2015. 

The current economic conditions and financial markets are expected to slowly stabilize with the GCC markets taking longer due to the fact that oil prices are expected to become stable on average between $30 - $40 per barrel over the coming year. The drop in oil prices has put pressure on many GCC fiscal budgets for 2015. 

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 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 Co. (a wholly owned subsidiary of Kuwait Finance House - Kuwait), our strategic partners, alliances and team members for their continued support.