Venture Capital Bank reports net profit of US$9.3m
Manama : Venture Capital Bank (VCBank) reported a net profit of US$9.3 million for the year ended 30 June 2016 compared to US$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 US$16m, compared to US$12.1m in the corresponding quarter in the prior year, representing an increase of 32pc. The results mark a sustained period of almost five years of excellent performance by the regional investment bank.
Total revenue more than doubled to US$36.6m compared with US$16.5m the previous year, while total expenses increased 28pc to US$16.2m versus US$12.6m for FY 2015. Net income from investment banking activities was the largest contributor to this growth at US$31.1m compared with US$13.7m a year earlier. These results are after recognising fair value losses and impairment provisions of US$20.5mn, which were booked based on investment valuations and impairment assessments, which are conducted periodically.
Announcing the results, Chairman of the Board of VCBank, Abdulfatah Marafie, said: “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 geo-political turmoil in certain parts of the region.”
“However, based on our strong financial and business performance in FY 2016, we have a cautiously optimistic outlook for VCBank in the immediate future,” he added.
Commenting on the results, Board Member and Chief Executive Officer, Abdullatif Mohamed Janahi, said: “VCBank structured, offered and placed four new investments in FY 2016 with a total capital raising of approximately US$200 million from investors which included initial forays into the US multifamily housing sector and the Turkish café / patisserie market. In addition, we concluded two investment exits, including VCBank’s first full private equity exit. At the same time, we made sound progress with several of our key existing investments.”
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