ABC 9-month profit up 40pc, hits $112m
Manama, October 28, 2010
Bahrain-based Arab Banking Corporation (ABC) has posted a consolidated group net profit of $112 million for the nine months ending September, 40 per cent higher than last year.
Net profit for the third quarter was $37 million, 8 per cent higher than the second quarter.
Total operating income for the third quarter of $181 million was 2 per cent higher than the second quarter. Group operating expenses decreased marginally to $88 million compared to $90 million in the previous quarter and the cost/income ratio improved to 49 per cent from 51 per cent.
Operating profit before impairment provisions improved 7 per cent to reach $93 million. Net impairment provision in the third quarter was $20 million, compared to $22 million in the previous quarter.
Shareholders’ equity on September 30 stood at $3,392 million, compared to $3,311 million at the half year, the increase of $81 million coming from improvement in fair values of non-trading securities, foreign exchange translation and net profit for the period.
ABC’s capital base remains very strong with a capital adequacy ratio of 23.6 per cent, predominantly Tier 1, which totalled 18.9 per cent. ABC’s liquidity remains comfortable with the liquid assets to deposits ratio at 74 per cent compared to 76 per cent in the previous quarter.
“The continuously improving revenues reflect a healthy overall growth in the major business segments of ABC Group benefiting from the strength of its diversification by geography and product lines,” said Hassan Juma, president and chief executive of ABC.
“We continue to remain watchful in our wholesale banking segment in the face of continuing uncertainties in the global economic environment which appear set to continue for the foreseeable future despite strong growth in the major emerging economies,” he added. – TradeArabia News Service