DUBAI,(Reuters) – Bahrain-based investment bank Investcorp’s profit in the six months to June 30 fell to about a third of the year-ago period as asset-based income dropped on global economic woes.
The company, which generates most of its income from investing Gulf Arab wealth in the West, made $63.3 million in the period, down 71.5 percent from $222.49 million in the year-earlier period.
The Bahrain- and London-listed firm made net income of $151.1 million in the fiscal year to June 30 compared with $302.3 million in the previous fiscal year, it said in a statement on Thursday.
It did not provide half-year figures, which Reuters calculated based on previous financial statements.
“This has been a year of unprecedented dislocation in global markets and we have seen the impact of these conditions across our primary investment markets,” Executive Chairman Nemir Kirdar said in the statement. “The volume of private equity and real estate transactions has declined significantly.”
Gross asset-based income across most of the bank’s business lines — private equity and hedge funds — fell 58 percent in the 12 months to June 30 to $199.5 million from 471.8 million to June 30. It did not give a breakdown for the second half of its fiscal year.
“The exceptionally high volatility and illiquidity in capital markets has impacted hedge fund returns and investment valuations,” Kirdar said.
Earnings per share declined 45 percent to $215 in the fiscal year, it said.
Investcorp has said it would start investing in the Middle East and as of Dec. 31 had more than $15 billion of assets under management.
The bank is offering its shareholders a dividend of $90, a 20 percent rise over the previous financial year, it said.
Investcorp made net profit of $87.77 million in the six months ended Dec. 31, 2007.