(MENAFNEditorial) Liquidity Management Centre (LMC)announced today its financial results for the three months ending June 30, 2012.
LMC's net profit for the second quarter stood at USD1.222 million - after impairment provisions of USD 220,000 – an increase of 31 per cent compared to USD 932,000 in the corresponding period in 2011.
LMC has also reported a total operating income of USD 3.925 million in comparison to USD 4.309 million for the same period in 2011.
This quarter's net profit represents a 4.8 per cent per annum return on capital while the average interbank rate remains below 0.5 per cent.
These results undoubtedly demonstrate the bank's ability to perform while adopting a conservative approach in the current market environment by taking additional provisions.
In terms of the bank's balance sheet, LMC's total assets witnessed a decrease of 7.6 per cent from USD 184.7 million during December 2011 to USD 170.6 million in the first half of 2012. Alternatively, shareholders' equity increased by 2.36 per cent during the same period.
Emad Al-Monayea, Chairman, LMC, said: "This strong performance by LMC was due to various advisory services in prominent transactions for Islamic banks in the region and a well managed portfolio of Sukuk and equities with a diversified investment approach.
We believe that the market has already witnessed a large correction for the GCC capital markets where most of the adverse market conditions have been priced in.
This year may continue to carry opportunities forable investors and positive growth may be obtained if volatility levels are taken into account."
"We thank our shareholders - Bahrain Islamic Bank, Dubai Islamic Bank, Islamic Development Bank, Liquidity Management House – a wholly owned subsidiary of Kuwait Finance House, Kuwait, strategic partners, alliances and team members for their support and we will continue to fulfill our objective of positively contributing to our industry's future."
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