Capinnova Investment Bank, the Shari’a compliant investment banking arm of BBK, announced that the Bank has reported a net profit for the 3 months ended 30th June 2010 of US $159 thousand as compared to net loss of US $821 thousand for same period in 2009. The gross revenue for the 3 months ended June 2010 was US $1.89 million in comparison to US $1.17 million for the 3 months ended 30th June 2009.
The net profit reported for the 6 months ended June 2010 was US $1.62 million as compared to a net loss of US $2.47 million during the same period in 2009. The gross revenue for the period increased to US$ 5.26 million as compared to US $1.59 million for 2009.
Capinnova is a newly established investment bank that started its operation at the beginning of 2009 with an authorized capital of US$500 million and issued and paid-up capital of US$ 125 million that was later on increased to US$151.5 million. The bank aims to provide quality investment products and innovative solutions to companies, financial institutions and high net worth individuals.
Mr. Abdul Kareem Bucheery, Chairman at Capinnova Investment Bank said: “We are delighted to have reported profits in the first and also in the second quarter of 2010. These numbers reflect the strength of our business model at a very challenging time faced by the industry. We are also very pleased to note the remarkable increase in our gross revenues notwithstanding the fact that we are a newly established investment bank that commenced operations in difficult market conditions”.
Mr. Jamal Hijres, Chief Executive Officer at Capinnova Investment Bank said “At Capinnova, we are doing our best to cope with the current tough market conditions and our focus on introducing innovative Islamic banking products and services should make us even better prepared for the longer term”.
Last year Capinnova also invested in building the biggest commercial mall in Muharraq area. Total cost of the project is worth approximately US$50 million. This year the bank also acquired 50 per cent stake in Sakana Holistic Housing Solutions. Furthermore, in April 2010 Capinnova invested US$20 million in EBLA Computer Consultancy - Kuwait, a leading GCC entity that is engaged in the provision of IT solutions and IT consultancy services in the MENA region.