CMH profit rises 255.7%

The Bahrain-based Islamic investment company Capital Management House (CMH) yesterday said its net income jumped 255.7 per cent to $14.4 million (Dh52.8m) last year compared to $5.6m a year ago.

The robust performance of the business in the face of extremely challenging financial markets saw CMH return on average capital for the year improved to 27.7 per cent and its earnings per share increased to $0.277cents compared to $0.118 cents in 2007.

The firm's board recommended 16.6 per cent stock dividend. Last year saw some key developments for CMH as it pursued its strategy of delivering innovative Islamic investment services to its clients.

Khalid Mohamed Najibi, Vice-Chairman and Managing Director of CMH, said, "2008 was a significant year of progress for Capital Management House, not only in terms of our financial performance but also in terms of the execution of our strategy.

"We have seen tremendous growth in our asset under management which has grown by 89.7 per cent this year to reach $105.9m as well as our equity base to $128.8m. The additional capital will enable us to invest in delivering market-leading products and services to our clients and drive our growth strategy.

The business has also been strengthened with the addition of new shareholders through the rights issue. Our strong financial performance allows us to propose a significant dividend this year for our shareholders, reinforcing our strategy of rewarding our shareholders.

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