Aug. 14--Ithmaar Bank, a Bahrain-based investment bank with global reach, today announced a 115 per cent surge in its half year net profit to a record US$141.9 million, up from US$65.9 million for the same period last year. As Ithmaar Bank's subsidiaries and associates continued their upward trend, operating profits nearly doubled from US$71.1 million for the first half of 2007 to US$139 million for the period ended 30 June 2008. Return on equity (annualized) remained strong at 21 per cent. These results reflect the Bank's strongest mid-year financial performance since it went public in early 2006.

"Ithmaar Bank's robust half year financial performance is a result of the management's strategy to consolidate the group's strengths over the past six months. Our confidence and willingness to pioneer unique investment opportunities has been recognized by the markets in the region, who have witnessed us forge inroads into previously unchartered territories this year," said Khalid Abdulla-Janahi, Chairman, Ithmaar Bank.

"Our financial results clearly show that we have bucked the trend as the financial industry around the world continues to struggle with the ripple effects of the sub prime crisis and rising inflationary pressures. The Bank's results were buoyed by our involvement in several high-profile transactions over the first half of the year. In June, the Bank played a major role in the launch of Naseej BSC (under formation), a BHD2 billion fully integrated infrastructure and real estate development company, and the first company of its kind in the region.

Naseej's highlights the commitment of the founding institutional shareholders to the local community and its launch provides a boost to Bahrain's construction and real estate sector, ensuring price stability and competitiveness in an industry currently plagued by supply shortages and delays," he said.

"Our development arm, Ithmaar Development Company, continued to make strides in implementing its real estate project portfolio. Its flagship development, the US$1.6 billion Dilmunia 'health island' project, is on track, with reclamation work already well underway; this Ithmaar Development Company mega project will put Bahrain firmly on the global map and create new avenues for investment in the Middle East's burgeoning healthcare industry," concluded Janahi.