for immediate release 					January 21st, 1999



TAIB BANK REPORTS 39%  INCREASE IN NET PROFITS

TAIB Bank E.C., the Bahrain-based Investment Bank, has achieved a net profit of US$10.1 million for the year 1998 according to a report released here today. This represents a 39% increase over the US$ 7.3 million achieved in 1997. TAIB Bank has also announced that the Board will be recommending a higher cash dividend of 6.5% for 1998. 

In his statement, Mr. Iqbal G. Mamdani, Vice Chairman and Chief Executive Officer said "TAIB's Operating Revenues in 1998, at US$ 31.8 million has been the highest achieved so far, and the Net Operating Income for the year amounted to US$ 17.4 million. The major contributions were from Securities Trading Income which recorded a growth of 25 % over 1997, as well as from the structuring and placement of Private Equity deals,  which the Bank has been focussing on over the last 2 years." "The Bank expects to achieve more earnings from this activity in the coming years", Mr Mamdani added. 

"Although the business focus of TAIB  is in the emerging markets of the Gulf, Turkey, India and Central Asia, through caution in respect of its exposures, the Bank has been able to minimise the impact of the turbulence in these markets."  Mr Mamdani said, and added that the Bank's continued emphasis on fee and commission income from the markets and business segments that it relies upon, had resulted in the ratio of  non-interest Income to Total Operating Income rising from 65% in 1996 to 71% in 1997 and further now to 75% in 1998. Further, in 1998, the Bank's BIS Risk Adjusted Capital Adequacy Ratio also improved to 38.7% (from 34.5% in 1997), which is more than four times the stipulated requirement. This gives the Bank a strong capital base and, coupled with its low leverage of 2.6, the added strength to further expand its activities in its niche markets." 

"On the Asset Management front, TAIB continues to focus on individual Portfolio Management and Fund Management. All five Funds managed by TAIB and its subsidiaries performed reasonably well in 1998. The two Funds launched in 1998, the American Explorer Fund and the TAIB Income Fund,  recorded modest gains in 1998, while the Golden Horn Fund in Turkey was able to perform better than the market index and is expected to recover its earlier succesful growth record soon. In addition, TAIB's first Fund, the Everest Fund, notched up a 40.4% increase in its Net Asset Value for the year and was ranked number one by Standard and Poor's Micropal, for the second year in a row, for the best year-on-year performance of an Indian equities fund," Mr Mamdani added. 


TAIB Bank EC, an international Investment Bank based in Bahrain and listed on the Bahrain Stock Exchange, focuses on business activities in the regional markets of the Gulf, the Indian Sub-continent, Turkey and Central Asia.



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For more information, please contact the press cordinator:
Mr. Salah Mohammed (Tel: 533334, Fax: 533174)

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