Addax Bank, which was founded in Bahrain in 2003 to tap the Middle East’s financial boom, yesterday announced a consolidated net profit of $20.2 million (Dh74.1m) for 2007, an increase of 71 per cent over the previous year.
Gross consolidated income for 2007 increased by 77 per cent to $33.7m compared with $19m for the previous year.
The increase was primarily on account of fees and advisory services, generated from structuring and placement of new investment opportunities for clients, which continued to play a major role in the bank’s profitability, the lender said in a statement.
The total fee income increased by 147 per cent from $9.4m in 2006 to $23.4m in 2007. Net income for the period represented a weighted average return on equity of 67.5 per cent.
“In addition to the robust performance, which proves our ability to generate record profits year after year, our successful capital raising exercise in 2007 reflects the confidence investors have in us, and underlines our leading presence in the Middle East’s investment banking sector,” said Chief Executive Officer Yousef Al Essa, the statement added.
Shareholders’ equity crossed the $100m-mark, following the bank’s successful capital raising exercise in the latter part of the year. Total assets increased by 123 per cent to $155m at the end of last year in comparison to $70m at the end of 2006, and shareholders’ equity rose to $108m compared to about $26m at the end of 2006.
The earnings per share at the end of 2007 stood at $1.05 compared to $0.92 as at December 31, 2006. The shareholders have approved the distribution of 30 per cent dividend in the form of bonus shares.
Increase in gross consolidated income for the year 2007
Mark was crossed by shareholders’ equity, following the capital raising exercise
Addax Bank net profit zooms 71% to touch $20.2 million