ABC Islamic Bank profit up 34pc
Dubai, November 5, 2013
Arab Banking Corporation (ABC) said its Islamic unit has registered a 34 per cent jump in its net profit for the first nine months boosted by new customer acquisition and balance sheet growth.
Announcing the results, the Bahrain-based bank said its net profit soared to $9.2 million from $6.8 million recorded during the same period last year.
The net profit for the third quarter was $3.2 million, 13 per cent higher than the previous year and also represented a 15 per cent increase over the second quarter of 2013.
The total operating income for the third quarter grew to $4.7 million, compared to $4.3 million last year, while the operating expenses were kept at $1.4 million, the same level as last year.
The Bahrain-based bank said its shareholders’ equity at September 30 stood at $245.4 million compared to $236 million at 2012 year-end. The bank’s capital base remains very strong, with a capital adequacy ratio of 26.2 per cent, predominantly Tier 1, which totals 25.1 per cent.
ABC Islamic Bank’s total assets stood at $1.078 billion at the end of the third quarter, compared to $1.067 billion at 2012 year-end.
Commenting on the results, Naveed Khan, the managing director, said the financial results for the first nine months were encouraging based on new customer acquisition and balance sheet growth.
"The growth in operating income has come about from a gradual build-up in asset portfolio, not withstanding lumpy repayments, accompanied by a healthy increase in fee and commission income. We remain optimistic looking forward," he added.-TradeArabia News Service