– Assets under management reached the $2 billion landmark
Gatehouse Bank plc (the “Bank”), the London-based Shariah-compliant investment bank announced an income of GBP12.8million (USD 20.0million) and net profit of GBP4.0million (USD 6.3million) for the year-ended 31 December 2013. Income remained stable against the prior year but profit increased by 67% whilst operational expenses only increased by 3.6%.
The above headline is a positive signal of the solid business drivers put in place in implementing the new strategy and the continued cost discipline in a still challenging environment. The generation of recurring income from the investment and financing book and a reduced dependency on cyclical transactional income is a key indicator of financial sustainability. As such, the Bank reported an increase of 30% in income from financing activities as well as an increase in excess of 600% from investments in listed instruments, which compensated for the reduction of nearly 70% in fees and commissions.
The balance sheet remains a core strength of the Bank with surplus liquidity and this leaves the Bank in a position to move quickly to underwrite transactions and financing. The credit quality of assets on balance sheet remains high with 41% being investment grade rated, 59% non-rated and only 0.2% non-investment grade.
Advancing the Bank’s franchise was evident on a number of fronts with the launch of new business lines and product suites in real-estate financing, three real-estate securitised sukuks, the acquisition of a further industrial portfolio in the US and the launch of the Single Family Residential income portfolio, also in the US. In the UK, the Bank announced the framework for a £700 million portfolio with Sigma Capital, the residential and urban regeneration specialist, to support the roll-out of one of the UK’s largest portfolios of new private rented homes. In February 2014, assets under management reached USD 2 billion. Organically, the Bank opened its Representative Office in Kuala Lumpur in May 2013 and in April 2014, the Bank launched a Client Investment Suite in the Mayfair area of London.
The Bank held its AGM on the 6th of May in London, and all resolutions were passed by shareholders.
“I am extremely pleased to report a second consecutive year of profitable financials, despite the increasingly competitive UK and US real estate markets and the difficult economic environment we continue to experience globally.” said Mr Boodai, Executive Chairman of Gatehouse Bank. “This solid performance represents an important milestone as the Bank evolves out of a start-up phase and into a mature bank; demonstrating the strong franchise, a sustainable business model, strong financial returns focusing on profitability, shareholder value and growth. I share the belief of the Board that the Bank has the requisite capabilities and business model to deliver the vision of the shareholders; to be globally recognised as a leading Shariah-compliant investment bank that provides innovative real-estate investment and financing opportunities and wealth management solutions to its clients.”