Bahrain-based Unicorn Investment Bank has reported an operating profit before impairments and fair value write-downs of $73.8m, an increase of 46% from $50.4m in 2007.
Net profit after impairments and fair value write-downs was $35m in 2008 or earnings per share of 18.7 cents.
The bank recorded an operating profit, before impairments and fair value write-downs, of $15.7m for the fourth quarter of 2008. The write-downs, together with impairment charges of $7m against Sukuk and equity securities, resulted in the bank reporting a net loss of $18.4m in the fourth quarter of 2008.
Majid Al-Sayed Bader Al-Refai, Unicorn’s managing director and CEO, said: In the five years since the bank’s inception, Unicorn has adopted a conservative and prudent approach which has shielded us from the worst of the global economic crisis. The bank maintains a prudent net cash surplus position and has minimised its dependence on short-term borrowings. Furthermore, Unicorn has very limited exposure to listed equities and the real estate sector.
The Bank states it has no exposure to the toxic assets that have caused major losses to be incurred across the global banking industry. The Bank has also deliberately avoided the real estate and listed equity markets and so has avoided the market losses that are affecting some institutions. The Bank has minimal holdings of listed equities and virtually no real estate exposure. Unicorn has a very low debt-to-equity or leverage ratio and is well-positioned to weather the shocks that are currently affecting the banking industry.
