GBCORP Annual General Meeting Highlights Company’s Success in 2008

GBCORP to enhance risk mitigation measures and ensure profitable growth and securing value.

Manama, Kingdom of Bahrain: Global Banking Corporation B.S.C (c) (GBCORP) held its Annual General Meeting (AGM) at the Bahrain Ritz-Carlton hotel today, briefing shareholders on the bank’s progress through the past year and presenting strategies to counter recent developments in the financial world.

The well attended AGM comprising Board Members and Shareholders approved all proposed resolutions unanimously.

Highlights of the meeting are as follows:

• Net profit reached US$21.2 million for the year ended 31 December 2008.
• GBCORP’s total operating income was US$53.2Million (2007:USD49.2Million)
• GBCORP has the mandate of the Board of Directors to put in place policy frameworks ensuring medium and long term sustainability along with mechanisms that allow a flexible response to critical developments such as the prevailing economic scenario.
• Capitalization of US$17.5 million, equivalent to a distribution of US$0.070 per share, to increase the paid-up capital from US$0.625 per share to US$0.695 per share, equivalent to 11.2 percent of the paid-up capital .
• Return on Average Equity in fiscal 2008 reached 12.4 percent marking an overall growth of 45 percent since inception.
• During the AGM, the Bank reaffirmed its confidence in the Shari’a Supervisory Board Members who were re-appointed for another term. The Board is chaired by Sheikh Dr. Mohamed Ali Elgari and the membership of Sheikh Nizam Mohammed Yaquby and Sheikh Osama Mohammed Bahar.
• Global Energy Financial Services Company (GEFSCO) was established as a subsidiary of GBCORP. GEFSCO will act as an energy advisory company offering a full range of industry-related advisory services to GBCORP’s projects, identifying and capitalizing on investment opportunities in the oil & gas and power sectors.
• Global Real Estate Development Company (GREDCO) was establishment as a subsidiary of GBCORP. GREDCO will focus on project development and offer a complete portfolio of investment and management services to GBCORP.

GBCORP’s Chairman, Mr. Saleh Al Ali Al Rashed, acknowledged the guidance and support of the shareholders, clients and strategic partners and expressed sincere appreciation for their confidence and commitment to the Bank.

“Along with the financial performance, we have also focused on building a strong infrastructure base, including investing in state-of-the-art IT systems and the acquisition of the GBCORP Tower in one of the most prime locations in the Kingdom of Bahrain. GBCORP has also maintained qualitative resource base in human capital and I am confident that these core strengths would contribute significantly to our future growth”.Said Mr. Al Rashed.

He reiterated his confidence in the ability of the bank to ensure that the risks inherent in the bank’s varied portfolios are minimised by strong risk mitigation measures and promoting improvements to valuations of financial instruments as well as the effective management of funding liquidity.

GBCORP, Vice-Chairman and Managing Director Mr. A. Rahman Mohammed Al Jasmi highlighted the expanded outreach of GBCORP as well as recent acquisitions “Our strategy continues to focus on investing into our strengths, on profitable growth and securing value. We are navigating through extremely challenging environments and will continue to deliver sustained profitability.Despite the continuing turmoil in the mortgage and credit markets, GBCORP remains well positioned with a strong capital position. We believe our integrated model gives us attractive opportunities to build long-term value for our shareholders. We are committed to building on the strength and resilience of our business and believe we can deliver positive growth across market cycles,".

Mr. A.Rahman Al Jasmi also added “While the recent economic slowdown has been unusual compared to typical business fluctuations, we are on the right course to face up to the challenges thrown up by the downturn. the Year 2009 will undoubtedly be a demanding one for GBCORP but we remain cautiously optimistic. Although the financial markets crisis renders any forecasting extremely difficult we intend to actively manage our portfolio of businesses and services which will be a crucial part of our efforts to grow profitably”.