This equates to an annualized net income of $190.5 million, an increase of 83 percent over the 2005 net income of $104.3 million. Arcapita changed its fiscal year end from 31 December to 30 June during the period, with the 18 months ending 30 June 2007 acting as a transitional period. Arcapita’s balance sheet footing at the end of June 2007 was $3.8 billion, up 104 percent on 31 December 2005.
A cash dividend of $112 million for the period has been proposed for shareholders’ approval at Arcapita’s Annual General Meeting, representing a return of 50 percent on the Bank’s paid-in capital.
Commenting on these results, Mohammed Abdulaziz Aljomaih, Arcapita’s Chairman, said, “We are pleased with the progress of the bank during the past 18 months, in which the bank has successfully expanded its operations in terms of product line and geography. We believe that the bank is well positioned for further steady growth.”
Worldwide, the bank now employs over 250 people in its offices in Bahrain, London, Atlanta and its recently opened office in Singapore.
Abdulaziz Hamad Aljomaih, Vice Chairman of Arcapita, also noted “The past 18 months has seen the consolidation of the bank’s expansion strategy. The equity capital increase completed in 2006 has supported the growth in deal volume and transaction size. The addition of Singapore as the bank’s fourth office will increase deal sourcing capabilities and attract new investors from the fast growing economies in Asia.”
“There have been many highlights for Arcapita and its shareholders during a very active 18 months,” said Atif A. Abdulmalik, Chief Executive Officer of Arcapita. “Each of our four lines of business has made significant contributions to the results for fiscal 2007, highlighting the strength of Arcapita’s diversified business model, and we completed five exits, returning over half a billion dollars to investors. We completed our three largest transactions during the period, and overall, added over 80 per cent to the total value of our transactions to date, which now stands at approximately $19 billion. We added a new line of business with our first venture capital fund, completed a doubling of our capital base to over $950 million, and achieved an investment grade BBB/A-2 credit rating from Standard and Poor’s. We also completed our largest global medium term financing facility to date, a syndicated Murabaha facility that raised $1.1 billion.”
Arcapita’s new deal pipeline remains strong, and the bank expects to announce further successful exits by the end of the year.
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