Liquidity Management Centre announces 7% return on share capital for year ended 31st December 2013

February 22, 2014 12:39 pm

Mr. Emad Al-Monayea, Chairman of the Board of Directors, and Mr. Ahmed Abbas, Chief Executive Officer of Liquidity Management Centre (LMC), are pleased to announce the results for the year ended 31st December 2013 with a net profit of $3.579m compared to $3.069m for the same year ended December 2012; resulting in 16.62% increase in the net profit, a return on capital equivalent to 7.02% while the average interbank rate remains below 0.5%. Net profit for the fourth quarter (3 months ended 31 December 2013) stood at $0.784m versus $0.454m for the same period in 2012. Total operating income recorded an amount $10.569m in comparison to $8.060m for the same year in 2012. In line with the positive returns, the Board of Directors in its meeting held on 13th of February 2014 decided to recommend to the AGM distribution of 1 bonus shares for every 20 shares held equivalent to 5% in Paid-up Capital in total to the Shareholders.

These results undoubtedly demonstrate the bank’s ability to perform in relatively challenging conditions whilst continuing with a conservative approach in the current market environment towards impairment provisioning in line with regulatory requirements. The net income achieved was due to astute investment banking activities, specifically opportunistic and perceptive investment returns made from a well managed portfolio of Sukuk and equities with a diversified and balanced investment approach and fee income earned from bank’s advisory services. The portfolio based activities witnessed an approximately 25% growth. The Bank’s balance sheet continues to see significant improvement in terms of asset quality and liquidity. Furthermore, the Shareholders’ equity rose by 7.12% from $58.77m as of 31st December 2012 to $63m as of 31st December 2013.

Markets are stabilizing from the after effects of volatility stirred up by expected changes in monetary policy and economic stimulus. Although a challenging environment lies ahead, the coming year may continue to present opportunities to alert investors and positive growth may be obtained if volatility levels are taken into account.

Based on the Bank’s track record and current performance along with the continued Shareholder support and experienced management team, we believe that we are well prepared for the coming year.

Finally, we take this opportunity to thank the Shareholders namely Bahrain Islamic Bank, Dubai Islamic Bank, Islamic Development Bank and Liquidity Management House (a wholly owned subsidiary of Kuwait Finance House – Kuwait), our strategic partners, alliances and team members for their continued support.


Kanishk Mishra
Senior Account Executive
Dabo & Co
+971 4 237 8029