ABC net profit rises to $205m
Manama, February 5, 2013
Arab Banking Corporation (ABC) has announced that its consolidated group net profit for 2012 edged ahead to $205 million compared to $204 million in 2011.
Total operating income amounted to $816 million as against $818 million in the previous year, despite the severe impact of the stronger dollar in translating the revenues of subsidiaries in 2012, reported the Gulf Daily News, our sister publication.
Strong revenues from subsidiaries in the Middle East and North Africa (Mena) region, Europe and Brazil, as well as from wholesale banking and treasury operations, boosted the group's earnings.
The group's assets totalled $24.527 billion, two per cent below 2011, the report stated.
The group continued to restructure the balance sheet by exiting low-yielding securities and growing the retail, corporate and trade finance businesses. Liquidity continued to be plentiful with a liquid assets to deposits ratio at 60 per cent.
Shareholders' equity at December 31 stood at $3.796 billion compared with $3.598 billion previous year. ABC group's capital adequacy ratio at 2012 year-end was very strong at 23.6 per cent, predominantly Tier 1, which totalled 18.6 per cent.
"The year's strong results demonstrate the earning capability from core businesses over the past several years despite the financial crisis which many major economies are still grappling with," said president and chief executive Hassan Juma.
"With relentless focus on maintaining asset quality and cost discipline, we have restructured the balance sheet and prepared a strong platform for expansion. We will remain vigilant in looking for asset growth in the face of the rapid compression in credit spreads regionally and in major economies since last year," stated Juma.
"Going forward, our product and geographical diversification and strong franchises in the niche markets we operate in places us in an excellent position to deliver consistent profits despite adverse conditions," he added.
ABC chairman Saddek El Kaber said, "I am delighted at ABC's results for the year, building on several years of steady and growing profitability."
"With very strong capital, liquidity and funding in place and assisted by the continued support from the shareholders, I am confident that ABC will continue to grow and further enhance its global presence as a leading universal bank in Mena," he added.-TradeArabia News Service