FLB is the first bank in the GCC dedicated to the introduction and expansion of high quality equipment leasing in the region. The Bank offers finance and operating leasing solutions for the industrial, manufacturing, medical, printing and publishing, telecommunications, IT, transportation and marine industries, among others.

FLB, in which Ithmaar Bank holds a 21.3 per cent equity interest, posted a net profit of $4.5 million in 2007. Total assets increased to $102 million, from $98 million as at the end of 2006. Total operating income increased by more than four times to $7.8 million, compared to $1.4 million during 2006.

The record achievements of First Leasing Bank (FLB) in 2007 underline the Bank’s successful development from its early seed years to a new phase of growth and profitability. The increase in FLB’s capital to $100 million at the end of 2006 provided a significant boost to the business activities of the Bank during 2007. Key developments included arranging higher ticket transactions for larger corporate clients, expanding the asset base and finalising plans to establish a presence in new regional markets.

With the ability to take on higher exposures, the average transaction size rose almost fivefold during the year, with many larger deals now ranging between $5 and $10 million. These were arranged by inviting other financial institutions to participate in the deal on a club basis, or by FLB underwriting the deal and then selling down to other institutions.

With its move into new sectors, the Bank successfully expanded its portfolio with more varied assets, including ‘green’ technology, printing presses, and manufacturing process equipment for the first time. FLB is also looking at a variety of investments with which to balance its portfolio further. These include some specific, almost boutique-type, real estate investments and small projects, but based on concepts more consistent with equipment leasing. An example would be not only leasing the equipment inside a warehouse, but also financing the warehouse itself.

The Bank’s current main markets are Bahrain, Kuwait and UAE, but due to the injection of new capital, the Bank is planning to expand into Qatar and Oman, operating either singly or through a local partner, and also to open an office in the UAE. Discussions have also started with a number of interested parties about a joint venture in Saudi Arabia.