Venture Capital Bank reports USD 9.7 million net profit in the second quarter of 2009
Venture Capital Bank (VCBank) posted positive financial results in the second quarter of this year despite the global financial crisis that have swept the world and regional economies. The Bank reported a net profit of USD 9.7 million for the second quarter of 2009, compared to USD 17.5 million for the same period last year, bringing the total net profit for the first six months of the year 2009 to USD 7.1 million. The Banks' assets increased by 2.9% compared to the end of 2008, while its capital adequacy ratio reached 48%.
The Chairman of VCBank, Dr. Ghassan Ahmed Al Sulaiman, commented on the financial results, saying: "we have applied a cost reduction policy to reduce administrative and operational expenses, and we followed a prudent and diversified policy of investing across a range of sectors such as medical and industrial services, information technology, shipping and real estate projects both investment and residential. Venture Capital investments are of long term nature with exit periods that could reach up to seven years. We are planting today the seeds of future success for our shareholders and investors by capitalizing on the exceptional opportunities that the global financial crisis currently offers in early to mid-stage growth companies with significant market potential that are seeking access to capital and additional technical and operational support to facilitate growth and expansion. We are confident of achieving more positive results in the coming difficult and challenging period and to demonstrate that the Bank's business model actually improves the regional economies through investment in small and medium-sized companies, creating distinct success stories".
From his side, Board Member and CEO of VCBank, Mr. Abdullatif Mohammed Janahi said: "the financial crisis had a negative impact on all investment sectors; however, the first six months of this year witnessed the conclusion of several deals that helped to strengthen our current investments. VCBank received approval from the Capital Market Authority of the Kingdom of Saudi Arabia to establish the Saudi Venture Capital Investment Company with a capital of SR 375 million, to carry out activities of management, arrangement, consultation and handling securities. 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. Similarly, Venture Capital Fund Bahrain 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 level of profitability of the Bank for the first half of 2009 reflects the prudent and diversified investment approach of the Bank to invest across a diversified range of sectors as part of a realistic overview of the regional and world markets in addition to abiding with requirements of the Central Bank of Bahrain. And by Allah's will, we are capable of activating more success to overcome the difficulties and challenges in the coming period." added Mr. Janahi.