Yemen-based banks record net profits of $100 million in 2007

Yemeni economic statements have revealed the net profits of all banks operating in Yemen during the financial year 2007 didn’t exceed $100 million and their profits in 2006 reached $70 million. 

According to their financial statements, the small proportion of the total profits of domestic and foreign banks operating in the poor country created many doubts about their capacities to promote the process of economic development and investment in Yemen. 

Seven commercial and Islamic banks have released statements of their profits in 2007 which ranged from $2 to 11 million, while the Yemeni Bank for Reconstruction and Development’s profits were $15 million. 

The financial statements showed that $55.3 million were the net profits of the Tadhamun International Islamic Bank, the National Bank of Yemen, which is fully state-owned, Yemen Commercial Bank, the Yemeni Bank for Reconstruction and Development, French-based Calyon Bank in Sana’a, the Cooperative and Agricultural Credit Bank, and United Bank Limited’s branch in Yemen. 

Meanwhile International Bank of Yemen, Yemen Gulf Bank, Yemen Kuwait Bank, Shamil Bank of Yemen and Bahrain, Islamic Saba Bank, the Islamic Bank, Arab Bank’s branch in Yemen did not release their financial statements for 2007 yet, but their average profits in 2006 were between $2 and 6 million. 

Economic experts said the decline in the banks’ profits was due to most of their money having been invested in treasury bills which made them unable to keep pace with developments in Arab and international banking activities as well as their weak performance and inability to expand banking activities in various provinces of the country.

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