Global Banking Corporation announces Financial results for the year ended 31 December 2008

Results reassuring despite the current financial circumstances

Manama, Kingdom of Bahrain: Global Banking Corporation B.S.C (c) (GBCORP) the Bahrain based Islamic Investment Bank today announced its preliminary financial results for the year ended 31 December 2008.

Financial Highlights

• Total income increased 8.1% to US$53.1 million (2007: US$49.2m)
• Net profit reached US$21.2 million achieving a Return on Equity of 12.4 %
• Total assets increased significantly by 93% to US$455.9 million (2007:US$236.2m)
• Funds under Management US$ 723 million

The results are a further affirmation of GBCORP’s prudent approach and positive 4th Quarter figures whereby GBCORP posted a profit of US$1.1 million, achieved despite adverse market conditions brought about by the global economic crisis.

Announcing the results, GBCORP’s Chairman of the Board, Saleh Al Ali Al Rashed said: “Our financial performance under difficult market conditions, underline our remarkable achievements whereby our Return on Average Equity in fiscal 2008 reached 12.4 percent marking an overall growth of 45 percent since inception in June 2007. We have earned the shareholders and the investors’ confidence and will continue to build on our business strengths.”

Expressing his gratitude to all GBCORP Stakeholders, he added: “GBCORP’s success is in every measure a reflection of our strategic business initiatives and an acknowledgment of the guidance and support of our shareholders, clients and strategic partners. I would therefore like to express sincere appreciation to our shareholders, our clients and our strategic partners for the confidence and commitment they have reposed in us and our management and staff for their sincere dedication and exemplary hard work.

I also wish to thank our Shari’a Supervisory Board, the region’s regulatory and supervisory authorities, especially the Central Bank of Bahrain, for their constructive assistance and advice.

Commenting on the results, Mr. Abdul Rahman Mohammed Al Jasmi, said: “GBCORP has held true to its vision and mission and is successfully engaged in developing all aspects of its operations in tune with the directions of the Board of Directors and the aspirations of our shareholders and other stakeholders.

As envisaged, our emphasis has been on building an organization that is respected and acknowledged for its depth of human capital with the expertise and experience to lead us to greater heights of success in terms of both quantitative and operational parameters.

We succeeded in positioning ourselves more solidly in the regional markets and making forays into potential sectors with global opportunities.” Emphasising on the way forward strategy, he added: “The way forward will not be easy but I am sure with the right strategies and human capital and focused approach we will be able to tap into new opportunities in new markets and ensure steady levels of growth. The important fact is that there will be strong market rationalisation in the coming period, and it will be important for us to leverage on all our resources and hold steady.”

Operational Highlights

• In October GBCORP signed a Memorandum of Understanding with Asia Development Co. Ltd., Thailand marking GBCORP’s premier investment initiative in the Kingdom of Thailand.
• Global Energy Financial Services Company (GEFSCO) was established as a subsidiary of GBCORP in strategic alliance with the Washington-based leading energy specialist Taylor-DeJongh (TDJ). 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.

Awards in 2008
• British Chamber of Commerce Award for Business Innovation
• Islamic Financial News - Best New Islamic Investment Bank

Event sponsorship
• FT Commercial Property Conference in London, giving firm insights on the prevailing property market in the UK
• GCC Europe Expo in London