First Islamic posts US $32.7 million profit

Successful 2001 for Bahraini Islamic investment bank; increases profits 60% year on year and closes a number of transactions.

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By  David Ingham Published  February 12, 2002

First Islamic Investment Bank E.C. has announced net income of US $32.7 million for the year ended December 31, 2001, a 60% increase over the US$20.5 million achieved in 2000. The Board of Directors has recommended a dividend payment of US$16.9 million.

“We have been able to increase deal flow significantly in our two main lines of business, which is reflected in the strong results we achieved in 2001,” said Atif A. Abdulmalik, the Bank’s chief executive officer. “Our aim in 2002 is to expand our real estate line of business into Europe and to continue to manage our direct investments with the aim of achieving profitable exits.”

During the year, First Islamic completed three new direct investment transactions with a total value in excess of US$438 million.

In June, First Islamic spent US $123.1 million to acquire 100% of Medifax EDI Inc, a provider of information processing services to the US healthcare industry. In August, First Islamic put down US$142 million for a 61% stake in Cirrus Industries Inc, a producer of single engine, general aviation aircraft.

Towards the end of the year, First Islamic spent US$173.1 million to merge Yakima Products Inc, a maker of automobile racks, with WaterMark Paddlesports Inc, a maker of kayaks and paddle sport accessories.

During 2001, First Islamic also completed three real estate joint ventures with ProLogis for an aggregate transaction value of US$603.5 million. In June 2001, a three-year US $100 million revolving Murabaha facility was arranged for First Islamic by a number of financial institutions.

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