Unicorn Investment Bank announces strong first quarter results
Bahrain, 11 May 2008 - Unicorn Investment Bank B.S.C. (c) (Unicorn) announces strong results for the three month period ended 31 March 2008. Earnings rose by US$20.0 million, or 83%, from US$24.0 million in the first quarter of 2007 to US$44.0 million in 2008. The net profit attributable to Unicorn’s shareholders increased by US$15.6 million, from US$4.4 million in 2007 to US$20.0 million in the first quarter of 2008. The strong results delivered major improvements in the Bank’s key profitability and shareholder return measures. Return on equity increased to 25.2% and earnings per share grew to 10.9 US cents per share. The cost:income ratio of 54.8% was comfortably within the Bank’s target range for operational efficiency.
In January, Unicorn received a strong vote of confidence from the international financial community with the successful close of a US$125,000,000 3-year Syndicated Commodity Murabaha Facility arranged on the Bank’s behalf by Dubai Bank and Raiffeisen Zentralbank Österreich AG (RZB). The facility, which was launched at US$100,000,000, was significantly oversubscribed, attracting a great deal of interest from financial institutions across Europe, the Middle East and Asia. Fifty percent of subscriptions were from non-GCC financial institutions, with 10% of subscriptions originating from Asia. Of the total amount raised, almost 25% of the financing was placed with Islamic investors. The funds raised will be used in support of Unicorn’s business plan and international growth model.
In February, Unicorn Global Private Equity Fund I completed its fifth investment to date, in Bahrain-based Gulf Strategic Partners WLL (GSP), a company specialising in pre-operational cleaning services for petrochemical, power, oil and gas and process facilities. Unicorn intends to work with GSP’s management to support the company’s next phase of growth, including regional expansion.
Unicorn also launched the fundraising for the Turquoise Coast Investment Company, a real estate investment company established to provide investors an opportunity to benefit from the thriving vacation homes market on Turkey’s Aegean Coast. The Company will invest in vacation home developments that are currently being planned on the Bodrum Peninsula, one of the fastest growing markets for international buyers seeking either a holiday home or an attractive real estate investment abroad.
The Bank also successfully upgraded its Dubai Financial Services Authority (DFSA) license from Category 3 to Category 2. The new license allows Unicorn Capital Dubai to act as Principal in connection with investments. Going forward, Unicorn Capital Dubai will act as Unicorn’s Direct Investment arm in addition to its current role in sourcing, distributing and managing investments on behalf of the Bank.
Commenting on Unicorn’s success in the first quarter, Majid Al-Sayed Bader Al-Refai, Unicorn’s Managing Director & Chief Executive Officer, said: “With Allah’s grace, we continue to make significant strides towards fulfilling our strategic vision of providing the market with a comprehensive and integrated range of Shari’ah-compliant investment banking products and services. Unicorn has been profitable since its first year of operation in 2004 and we now have a presence in five countries across three continents.”