First Leasing Bank announces 2008 results

Manama, Bahrain– 12 March 2009 – First Leasing Bank (FLB) announced today a net profit of USD $3.0 million, for the year ended 31, December, 2008. The Bank’s income from financing activities grew to $8.4 million from $3.6 million in 2007 and total portfolio grew to $142.5 million from $54.5 million at the end of 2007.

“Our 2008 annual results remain positive for the Bank as it continues growing toward maturity. Despite strong revenue and portfolio growth this year, the Bank had planned for substantially higher growth with the help of our major shareholders and board in raising the requisite capital to do so. Demand is very strong for the Bank’s leasing products. With adequate funding, we have a tremendous opportunity to keep growing, to produce more profits and to further distinguish FLB as a market leader for equipment leasing in the GCC region,” said FLB Chairman, Khalid Kanoo.

The Bank, which is dedicated to developing middle-market equipment leasing in the GCC region, presented its 2008 financial result to the shareholders at an Annual General Meeting, held at the Ritz Carlton Bahrain today.

The Bank’s net profit was supported by operating income of USD $9.5 million, up from USD $7.1 million in 2007. Net Income of USD $3.0 million is down from USD $4.5 million in 2007 as the Bank invested in incremental staff and infrastructure to support planned growth. Net Income for the 4th Quarter was USD $0.9 million. Total assets increased to USD $179.4 million while shareholders’ equity stood at USD $103.8 million.

FLB CEO, Greg Brinkerhoff said: “Despite our capital constraints, FLB managed to leverage our balance sheet and grow in 2008. I am proud of our management and staff accomplishments and want to expressly thank them for their efforts during this very challenging year. We will continue to work quickly and diligently toward transitioning the Bank to maturity, which for FLB will be a modest 3:1 debt-to-equity capitalization ratio and a lease portfolio over USD $500 million. Milestones achieved by FLB in 2008 include penetrating the Qatar market, adding operating leases to our portfolio and closing vendor program leases with multi-national equipment manufacturers. Islamic Finance News has recognized First Leasing Bank as the ‘Best Islamic Leasing Provider’ for 2007 and, again in 2008. The bank management and staff look forward to another year of growth and progress in 2009 with the ongoing support of our shareholders and board members.”