ADDAX Announces 220 percent Growth in Profits

Date : 01 February 2006

Addax, the Middle East investment bank based in Bahrain, has announced its results for 2005.

A consolidated net profit of US$3.2 million was reported for the year ended 31 December 2005, an increase of 220% over the previous period.

Saleh Al-Selmi, Chairman, Addax Investment Bank, commented on the bank’s results, “Addax has made great strides in 2005, forging strategic partnerships with high-profile institutions like Dubai Holding and other high net-worth investors and our results are a positive reflection of our strategy.”

At the end of 2005, total assets of Addax stood at US$15.1 million and increased by 30% over the previous year. During 2005, Shareholders’ Equity increased by 30.9% over the previous period. The year on year growth in revenues in 2005 was 69% over the previous period. The significant contributors to the revenue increase were the fee and commission income and the trading portfolio of investments, which increased by 105% and 72% respectively over 2004.

“We are continuously strengthening our network and moving into developing markets. We are certain that our diverse trading portfolio coupled with our alliances around the region will hold us in good stead for the coming year and we anticipate having an even more successful year than we had in 2005,” said Yousef Al- Essa, General Manager, Addax Investment Bank.

“Addax’s vision since our inception in 2003 has been to deliver healthy, consistent financial returns to our shareholders and clients. Our 2005 results prove that we are on the right path to achieving and surpassing our initial vision,” added Al- Essa.

“Our team has worked hard to structure innovative and profitable deals around the MENA region and we are constantly seeking out opportunities for growth in the Middle East and beyond. Having established a strong base in Bahrain and with a record year behind us we are looking forward to the next year and continuing with our expansion plans,” Al-Essa concluded.

The cost to income ratio during 2005 improved to 45% (2004: 69%) and the return on Average Capital employed during 2005 was 32.4% as compared to 10% for 2004 whereas the return on average assets improved from 8.7% (2004) to be 24.3% for 2005.

Due to the success achieved by Addax, the Shareholders approved payment of bonus share dividend of 38.22%.