ABC Islamic Bank today announced a record net profit of $15.7 million for the first half of this year, a 72.8 per cent increase over same period last year

Total income reached $18.63 million (2007: $11.48 million), while fee income of $2.88 million increased by 89 per cent over the same period last year. Operating expenses of $2.97 million increased by 23 per cent over the same period last year, attributable to additional staff hired to develop the Bank’s growing business lines and cost of living increases. The bank’s cost-to-income ratio improved to 16 per cent over the period (2007: 21 per cent).

ABC Islamic Bank’s total assets amounted to $1.615 billion (2007 year end: $1.365 billion) with an increase in available for sale investments which stood at $402 million (2007: $329 million) mainly in sukuks. Murabaha receivables and Ijara assets increased to $1.201 billion (2007: $995 million) as the lending portfolio continued to grow to meet customer demand, the bank said.

Naveed Khan, managing director, said: “Despite a relatively quiet start to the year, because of the global credit crunch, the results are a testament to solid relationships developed with core customers and hard work put in by staff, coupled with the strong support we get from the parent group. We are hopeful of consolidating and building on these results for the full year 2008.”

Arab Banking Corporation (ABC) launched its Islamic Banking Division through ABC Investment & Services Co. (EC) a wholly-owned subsidiary, based in Bahrain in 1987. The objective was to establish a leading Islamic banking unit, which conformed completely to Shari’a principles.

In March 1998 ABC Investment & Services Co. (EC) was converted into a fully fledged Islamic entity and was consequently renamed ABC Islamic Bank (EC). – TradeArabia News Service