ABC Islamic Bank's Q1 net falls to $1.8m
Manama, May 13, 2010
ABC Islamic Bank has registered a net profit of $1.8 million for the first quarter of 2010, a drop from $5.6 million in Q1 last year.
Total income for the first quarter was $3.9 million, compared to $6.9 million for the same period a year ago. The lower income was mainly due to three factors: de-risking of the balance sheet, lower fees from new transactions closed and some one-off revenue items realised during the same period last year.
Operating expenses were kept nearly flat at $1.4 million, compared to $1.3 million in 2009. Conservative higher provisions on impaired assets from the previous year also contributed to a lower net profit figure of $1.8 million for the first quarter.
Shareholders’ equity at the end of the quarter improved to $182.9 million, compared to $176.5 million at year-end 2009, the increase coming from improvement in fair values of available-for-sale investments as well as profit for the period.
The capital adequacy ratio, calculated on the basis of Basel II Capital adequacy regime stood at 22.2 per cent whereas Tier 1, capitalisation was also a healthy 22 per cent.
ABC Islamic Bank’s total assets declined to $1.27 billion at the end of the first quarter from $1.32 billion at year-end 2009 mainly due to a decline in Murabaha receivables.
“ABC Islamic maintained a positive operating result in the first quarter of 2010 despite de-risking of the balance sheet and conservative provisioning on impaired assets from the previous year. This has been in line with Group and parent policy. However the bank is well poised for future growth as its capitalisation ratio has a healthy cushion for selective growth,” said managing director Naveed Khan.-TradeArabia News Service