Manama-based TAIB Bank has reported profits of $9.7 million for 1995, modest increase on last year's performance The bank reported a drop in interest income but this was more than offset by the rise in fee income which has followed from the bank's continued shift towards investment banking activities.
'The 1995 results are a clear reflection of the bank's continuing successful business strategy in recent years to focus more on investment banking activities, retaining at the same time the strengthened management risks to stabilise improved profitability,' TAIB chief executive officer Iqbal Mamdani said in a statement.
The bank's assets have declined steadily since shifting away from lending activities. In 1995, assets fell to $307 million, compared
4 MEED 1 MARCH 1996 with assets of $356 million in 1993. Loans and advances dropped 21 per cent in 1995 to $48 million, accompanied by a 14 per cent fall in net interest income to $7.4 million.
However, fees and other income rose strongly to $6.8 million in 1995 from $2.7 million a year earlier.
TAIB's wholly-owned Turkish subsidiary Yatirim Bank increased its profits by 47 per cent in dollar terms during 1995, on improved earnings from corporate finance, advisory and brokerage services, TAIB says.
TAIB is also developing new business in India, opening a merchant banking operation in Bangalore in November 1995. TAIB Capital Corporation (TCCL) has been set up with capital of Rs 50 million ($1.4 million) in joint venture with 10 of India's leading compa nies. 'TCCL will be a vehicle for Gulf investors in the future not only for equities, but also for other advisory services,' Maindani said. In addition, TAIB launched its Everest Fund at the end of 1995. The fund will invest in Indian equities.
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