LMC Announces 19% Returns - 2006

Liquidity Management Centre (LMC) has announced its year end financial results for the year 2006. LMC reported an operating revenue of US$ 8.9 million for the period ended 31 December 2006 in comparison to $ 4.4 million at the end of 2005. The net profit for the year ending 31 December 2006 was US$ 6.1 million, with Total Assets standing at US$ 220 million and the Shareholders Equity reported at US$ 58 million.

The results for the year 2006 reflect the exceptional performance of the Bank since its incorporation 4 years ago. Mr. Aref Kooheji, Chairman of LMC, expressed his satisfaction, commenting on the financial results for 2006, “The results are sincerely gratifying and prove that growth can be achieved through focus and specialization, particularly in the current market conditions. The Bank’s results are reflected in the Sukuks issued to date that have crossed the billion dollar mark and the remarkable volume of secondary market trades effected through LMC.”

LMC has also announced the successful initiation of the first stage of the binary capital increase strategy in September 2006 whereby the Shareholders mutually and unanimously committed to equally contribute to the paid-up capital increase of the Bank from US$ 20 million to US$ 50 million. LMC’s Shareholders, Kuwait Finance House - Kuwait, Dubai Islamic Bank, Islamic Development Bank and Bahrain Islamic Bank retain equal ownership of the Bank, which is one of the leading institutions in Sukuk issuance. The second stage of the Bank’s capital increase is planned to take place this year, effectively raising the paid-up capital to US$ 100 million.

On this occasion Mr. Aref Kooheji expressed his gratitude to the board members and the executive management of LMC for the exceptional effort that has been exerted during the past year and he also took this opportunity to once again express his gratitude towards the ever supporting shareholder group and strategic partners wishing them a successful and prosperous year.