Venture Capital Bank AGM approves 8.5% bonus share distribution with total value of US$ 18.9 million - Honouring the Previous Board Members, and first AGM to its New Board Members
Manama - Kingdom of Bahrain, 22 March, 2010: Venture Capital Bank B.S.C. (c) (VCBank), held its Ordinary General Meeting chaired on Monday, 22 March 2010 at the Sheraton Hotel Bahrain to discuss the external auditor's report and approve the financial statements for the year ended 31 December 2009, in which the bank achieved net profit of US$ 11 million. The total income reached US$ 32.4 Million and 5.4% return on equity. The shareholders have declared a bonus shares issue of 8.5% amounting of US$ 18.9 million, which represents approximately 11% of the average paid up capital.
During the press conference that followed the Bank's AGM, Dr. Ghassan Ahmed Al Sulaiman, Chairman of VC Bank, commented on the results by saying: "VCBank achieved positiveresults in year 2009 and the Board of Directors endorsed the distribution of the bonus shares at 8.5% with total value of US$ 18.9 million. I also would like to mention that this is the first Annual General Meeting attended by our newly joined Board members, who have contributed a lot to VCBank, especially during 2009, despite the prevailing market conditions. I also would like honour the pervious Board Members, whom with their dedications and the tremendous support they provided during their serving period in VCBank Board of Directors, granting their experiences and guidance, made this possible. They are:
MR. SALMAN MOHAMMED AL JISHI
MR. SULIMAN HAIDER AL HAIDER
MR. BADER GARAMALLAH AL ZHRANI
MR. CHRISTOPHER BROWN
" FURTHERMORE, OUR BALANCE SHEET HAS GROWN FROM A MODEST BASE OF US$ 66 MILLION AT INCEPTION TO A TOTAL BALANCE SHEET SIZE OF US$ 356 MILLION NOW; AN INCREASE OF 5.4 TIMES SINCE INCEPTION. IN ADDITION, OFF BALANCE SHEET FIDUCIARY ASSETS HAVE GROWN FROM INCEPTION TO US$ 672 MILLION AS AT 31 DECEMBER 2009 COMPARING WITH 340 IN 2007 AND 657 IN 2008. THIS TRACK RECORD IS FURTHER CORROBORATION OF VCBANK'S STATUS AS THE FIRST ISLAMIC INVESTMENT BANK SPECIALIZING IN VENTURE CAPITAL INVESTMENTS IN SMALL AND MEDIUM BUSINESSES (SMES) IN THE MENA REGION"
THE TOTAL INCOME, FOR THE PERIOD ENDED 31 DECEMBER 2009, REACHED US$ 32.4 MILLION, WHILE THE TOTAL EXPENDITURES FOR THE PERIOD WAS US$ 21.4 MILLION, AN OUTSTANDING PERFORMANCE IN THE FOURTH OPERATIONAL YEAR FOR THE BANK. THE TOTAL ASSETS OF THE BANK AS OF 31 DECEMBER 2009, WERE US$ 356 MILLION, WHILE TOTAL SHAREHOLDERS' EQUITY BEFORE ALLOCATIONS WAS US$ 286 MILLION. THE BANK MAINTAINED A HIGH RATE OF LIQUIDITY IN SHORT-TERM BANK MURABAHA WITH SPECIALIZED BANKS IN THIS FIELD. VCBANK HAVE HIGH CAPITAL ADEQUACY, WHICH IS HIGHER THAN THE MINIMUM REQUIREMENTS BY THE CENTRAL BANK OF BAHRAIN'S 12%.
On behalf of the Board of Directors, I would like to express my sincere gratitude and appreciation to His Majesty King Hamad bin Isa Al-Khalifa, King of the Kingdom of Bahrain, and His Royal Highness Prince Khalifa bin Salman Al-Khalifa, the Prime Minister, and His Royal Highness Prince Salman bin Hamad Al-Khalifa, the Crown Prince and Deputy Supreme Commander, for their wise leadership and constant encouragement of the economic sector and the Islamic banking industry in particular. My thanks also goes to the Central Bank of Bahrain, the Ministry of Industry and Commerce and other Government authorities for their continued guidance and support during the year 2009.
I wish also to extend my gratitude and thanks to the shareholders, clients, investors and business partners for their unwavering loyalty and encouragement, as well as to the executive management and all members of VCBank team for their constant efforts and endeavour which enabled the bank to achieve good results in spite of the difficult global markets conditions".
From his side Mr. Abdullatif Mohammed Janahi, Board Member and VCBank CEO, said "With the continuous difficult economic conditions and operating environment which imposed a myriad of challenges during the year 2009, VCBank relentlessly continued its successful progress toward realization of its vision to become the leading regional Islamic venture capital investment bank. In the light of the negative consequences of the global financial downturn, VCBank continued to embrace a conservative and balanced approach to enter into new investments and focused on profitable projects to ensure realization of its objective both to add value to the shareholders and investors and contributing to Bahrain's economic and social development."
DURING 2009, VCBANK LAUNCHED THE ROYAL MATERNITY HOSPITAL, AN INNOVATIVE PROJECT FOCUSED IN THE PREMIUM HEALTH CARE SEGMENT. WE REMAIN FOCUSED ON THE MENA REGION, TARGETING SOUND AND YIELDING PRIVATE EQUITY OPPORTUNITIES FROM SOUND AND WELL-MANAGED SMALL-TO MEDIUM ENTERPRISES (SMES). THE BANK ALSO INITIATED AN INNOVATIVE LIQUIDITY PROGRAM TOTALING USD 55 MILLION COMPRISING SHARI'AH COMPLIANT CERTIFICATES STRUCTURED IN CONNECTION WITH THE EXIT OF ITS VENTURE LOGISTICS PROPERTIES INVESTMENTS, WHICH HAS BEEN EXITED AT EXCELLENT RETURN ON INVESTMENT OF 138% AND 82% AND AN IRR (PRE PERFORMANCE FEE) OF 35% AND 27% FOR THE INVESTORS".
VCBANK CONDUCTED DURING 2009, SEVERAL DEALS THAT ENHANCED OUR CURRENT INVESTMENT PORTFOLIO. VCBANK HAS SUCCESSFULLY SIGNED A PARTNERSHIP AGREEMENT WITH DUTCH DELIGHT, A BAHRAINI COMPANY SPECIALIZING IN THE PRODUCTION OF HIGH QUALITY HANDMADE CHOCOLATES, WHICH IS A CLEAR VALIDATION OF VCBANK'S BUSINESS MODEL TO INVEST IN SMALL AND MEDIUM-SIZED COMPANIES, WHICH REPRESENTS A LARGE AND EFFECTIVE PART OF THE GLOBAL ECONOMY. THE BANK ALSO ORGANIZED SEVERAL FORUMS AND SEMINARS FOR ENTREPRENEURS IN THE KINGDOM OF BAHRAIN, TO INTRODUCE THEM TO BANK'S ROLE AND BAHRAIN VC FUND.
Moreover, Jordan Al Abyad Fertilizers and Chemicals Company (JAFCCO) received a syndicated financing facility of USD45 million managed and lead by Jordan Ahli Bank to further finance the work in progress of its industrial complex to manufacture fertilizers and chemicals. Challenger Ltd. Received a USD 60 million working capital facility with Natixis,a European bank specialized in the oil and gas sector, which will provide further financial strength for expansion. One of 2009 achievements, VCBank received approval from the Capital Market Authority of the Kingdom of Saudi Arabia to establish the Saudi Venture Capital Investment Company. VCBank also announced the completion of the German Orthopaedic Hospital in Bahrain, which represents a state of art medical facility specializing in the provision of orthopaedics healthcare and is operated by world renowned orthopaedic surgeons and medical staff from the Federal Republic of Germany, and provide an effective local and regional alternative to medical tourism destinations, particularly Europe" added Mr. Abdullatif.
"We are keen on continuing our performance on the coming period to achieve our shareholders objectives and to prove VCBanks' concept in investing in small and medium business".