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Manama, 25 February 2014:
Net profits at the Banrain-based ABC Islamic Bank, a wholly owned subsidiary of the . . .[restrict]Libyan-owned and controlled Arab Banking Corporation rose 48 percent in 2013 to $12.2 million in 2013. Net profit for the fourth quarter of 2013 was $3 million, 112 percent higher than the same period of 2012.
In an announcement today, ABC Islamic Bank said that its total operating income grew 12.8 percent to $18.1 million, compared to $16 million the previous year. Operating expenses were down by more than 20 percent to $5.5 million. As a result, the cost-to-income ratio improved to 30.6 percent, compared to 43.3 percent in 2012. The report said that no impairment provisions were required during the year, demonstrating continuing improvement in credit quality.
Shareholders’ equity at 31 December 2013 stood at $248.4 million, compared to $236 million at 2012 year-end. “The bank’s capital base remains very strong with a capital adequacy ratio of 27.6 percent, predominantly Tier 1, which totalled 26.2 percent,” the report stated.
There was a slight decrease in total assets, however. These were down from $1.067 billion at 2012 year-end to $1.002 billion on 31 December 2013.
The Managing Director of ABC Islamic Bank, Naveed Khan, called the results “encouraging. They were based, he said, “on new customer acquisition and higher growth in our core target markets”.
The growth in operating income had come from “a gradual build-up in the asset portfolio, despite some lumpy repayments during the year, but accompanied by a healthy increase in fee and commission income”.
The financial results were, he stated, “a reflection of the transformation steps undertaken in conjunction with the Group over the past years which are now starting to take firm root”. [/restrict]
