BLME reports £56m operating income in 2013

Dubai: BLME Holdings plc, the Nasdaq Dubai-listed Islamic banking group on Monday reported an operating profit before tax of £6.1 million (Dh37.5 million).

The group has increased its operating profit before impairment charges by 12 per cent in 2013 and reported strong business growth across its corporate banking and wealth management divisions.

“2013 was an important year for both BLME and the Islamic finance industry. The listing on Nasdaq Dubai in October 2013 enhances BLME’s position as a market leading Islamic Bank. In the UK, BLME has established itself as the leading Islamic Bank servicing the corporate mid-market with a full range of banking products,” said Humphrey Percy, CEO of BLME.

Liquidity ratios

During 2013 the Group’s operating income increased to £56 million from £52.5 million in 2012. The balance sheet increased by 19 per cent from £1 billion to £1.2 billion. With 13 per cent growth in depositors recorded last year BLME said it is well positioned to increase financing further and meet the more stringent regulatory liquidity ratios.

For the year 2013 the bank’s impaired assets decreased from 5.1 per cent to 4 per cent, better than the industry average while the fee income increased by over 50 per cent.

Currently BLME’s capital adequacy ratio remains well in excess of current and impending Basel III standards. It is also pleasing to note that net fee Income increased by 54 per cent to £2.74 million, demonstrating a more mature product offering, and increased earnings diversification, as well as helping to improve return on capital.