ADDAX announces 265% growth in profits

Date : 04 January 2007

86% return on Capital, one of the highest in the industry

Bahrain based, Addax Investment Bank (Addax) has announced its results for 2006. A consolidated net profit of US$11.8 million was reported for the year ended 31 December 2006, an increase of 265% over the previous year comparative.

Yousef Al Essa, CEO of Addax Investment Bank, commented on the bank’s results, “Our financial results, organizational developments and business achievements have surpassed expectations”. “We are extremely proud of our results, the quality of our earnings and our profitability ratios.”

Al Essa added “Addax has made great strides in 2006 by expanding its scope of operations to diversify into hospitality, restaurants, media and education with an objective of strengthening its network and focussing on the entire Mena region”.

The main contributors to the revenue in 2006 were the fee and commission income and income from investments activities, which resulted in the year on year growth of 213% in total revenues. At the end of 2006, total assets of Addax stood at US$69.7 million, an increase of 361% and the Shareholders’ Equity increased by 83% over the previous period comparative.

Al-Essa further added that “Addax has achieved record results in 2006 and managed to consolidate its position in the financial industry as a result of the consistent growth in all metrics since inception. Despite challenging market conditions, we continue to grow at an extremely fast pace. The strength of our results is largely due to our focused strategy of identifying and executing on lucrative and unique investment opportunities for our clients.”

Al-Essa added “These outstanding results could not have been achieved without the continued support of our clients and shareholders and the hard work and dedication shown by our team of professionals”.

Addax’s return on Average Capital employed during 2006 was 86%, one of the highest in the industry.

The General Assembly of Addax approved payment of bonus share dividend of 32.64%".  The approval of CBB to this effect has already been obtained.