Unicorn profits up 46% last year at $73.8m

Bahrain-based Unicorn Investment Bank yesterday said its operating profits increased 46 per cent to $73.8 million (Dh271.8m) in 2008 compared to $50.4m the previous year.

The bank said its net profit after impairments and fair value write-downs was $35m but didn't provide the comparative figure for the previous year. Earnings per share were 18.7 US cents.

The bank also announced write-downs of $31.8m. These write-downs reflect the current market uncertainties and the general drop in valuations across the world and the long-term business prospects for the companies in question remain sound. The write-downs, together with impairment charges of $7.0m against sukuk and equity securities, resulted in the bank reporting a net loss of $18.4m in the fourth quarter of 2008.

In January, the bank successfully closed a three-year syndicated commodity Murabaha facility that was significantly oversubscribed, raising $125m.

Despite the global financial crisis, Unicorn also successfully raised new capital through an international private placement. The increased capital resources, combined with the bank's modest degree of leverage and liquidity, will fund its continuing regional and global business expansion.

Unicorn said it had no exposure to the toxic assets that have caused major losses to be incurred across the global banking industry. The bank has avoided the real estate and listed equity markets and so has avoided the losses that are affecting some institutions.

The bank has minimal holdings of listed equities and virtually no real estate exposure.