Addax Bank net profit soars 71 per cent to US$20 millionAddax Bank net profit soars 71 per cent to US$20 million

Date : 17 February 2008

Bahrain-based Addax Bank today announced a consolidated net profit of US$20.2 million for the year ended 31 December 2007, an increase of 71 per cent over the previous comparative year.

Gross consolidated income for the year increased by 77 per cent to US$ 33.7 million compared with US$ 19 million for2006. The increase was primarily on account of fees and advisory services, generated from structuring and placement of new investment opportunities for clients, which continued to play a major role in the bank’s profitability. Total fee income rose by 147 per cent from US$ 9.4 million in 2006 to US$23.4 million in 2007. Net income for the period represented a weighted average return on equity of 67.5 per cent.

“In addition to the robust performance which proves our ability to generate record profits year after year, our successful capital raising exercise in 2007 reflects the confidence investors have in us, and underlines our leading presence in the Middle East’s investment banking sector,” said Chief Executive Officer Yousef Al Essa

“Furthermore, winning the “Best New Bank” and other awards during the year, marks a significant milestone in the bank’s short history, and will definitely have a positive effect on the our future performance.”

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

Shareholders’ Equity crossed the US$100 million mark, following the bank’s successful capital raising exercise in the latter part of the year.

Total assets increased by 123 per cent to be at US$ 155 million at the end of 2007 in comparison to US$70 million at the end of 2006 year, and the Shareholder’s equity rose to US$ 108 million compared to US$26 million at the end of in 2006.

As of 31 December 2007, the bank’s earnings per share stood at US$1.05 compared to US$0.92 as at 31 December 2006.

Based on these excellent results, the General Assembly of the shareholders on the 9th of February, 2008 approved the distribution of 30% dividend in the form of bonus shares.