The Islamic Investment Company of the Gulf (IICG) in Bahrain, the investment banking arm of the Geneva-based Dar Al Maal
Al Islami Group, has announced substantial increase in net income for 1994 to $11.9 million, up from $1.6 million in 1993. IICG has also announced a 50 per cent capital increase to continue expanding its business.
The improved results are due to three factors, IICG says. The company was lead manager and a substantial participant for $560 million worth of syndications in 1994. Extra revenue was also generated by the sale of some investments that year. Finally, the IICG underwent a structural re-engineering during 1993 and 1994. It had $794.5 million under management in 1994. In addition to this existing investment management business, IIGC also offers syndications and corporate advisory services, capital markets services, and deal selling. These newer departments helped to generate higher revenue streams in 1994.
As a result, returns on shareholders’ funds rose by 41 per cent to $41 million. Total assets increased by 42.5 per cent to $41 million in 1994, increasing the return on average assets to 33 per cent from 5 per cent. Earnings per share has increased to $59.6, up from $7.70.
The directors recommended a 50 per cent increase in share capital to $30 million on 29 March. The increase has been financed through capitalisation of free resources and from 1994 profits, IICG says.
IICG took part in commodity financing, Morabaha, Bai-Salam, Istisna and Ijarah, in countries including Bangladesh, Canada, China, Denmark, Egypt, Indonesia, Malaysia, Pakistan, Saudi Arabia, Switzerland, Turkey and the UK.