ABC Q3 profit up 29pc to $53 million
Manama, November 11, 2012
Arab Banking Corporation (ABC) posted a group net profit of $53 million for the third quarter of this year, a 29 per cent increase over the same period last year.
The bank had achieved a net profit of $41 million during the same period last year.
The consolidated group net profit for the first nine months of 2012 was $158 million compared to $157 million for the same period last year, the bank said in a statement.
Total operating income for the third quarter amounted to $200 million, same as last year, while operating expenses of $98 million was marginally higher than $97 million in the previous year.
Cost/income ratio was maintained at 49 per cent, the bank said.
Operating profit before impairment provisions reached $102 million (2011: $103 million). Net impairment provision charge of $13 million was $7 million lower than last year due to recoveries. After tax charge and share of minority interests, net profit for the quarter amounted to $53 million, 29 per cent higher than last year.
Shareholders’ equity at September 30, 2012 stood at $3,742 million, compared to $3,672 million at the end of the second quarter.
ABC’s capital base remained strong with a capital adequacy ratio of 23.4 per cent, predominantly Tier 1, which totalled 18.6 per cent, the statement said.
ABC’s liquidity remained comfortable with the liquid assets to deposits ratio at 58 per cent, compared with 59 per cent at the end of the previous quarter.
Hassan Juma, president and chief executive of ABC, said: “The results demonstrate the group’s ability to deliver sustainable core earnings through its diversified product offerings across our geographies in spite of a continuing fragile economic climate in certain of our markets. Growth is well complemented by our robust risk management strategy and tight cost containment measures.”
Saddek El Kaber, chairman of ABC, said: “I am pleased with ABC’s results. With strong capital, liquidity and funding firmly established to support its growth, ABC is building an excellent platform for its transformational journey to become a leading universal bank.” – TradeArabia News Service