Arab Banking Corp posts $56m Q1 profit
Manama, April 28, 2013
Bahrain-based Arab Banking Corporation (ABC) has announced that its consolidated group net profit for the first quarter of 2013 was $56 million, 4 per cent higher than the profit of $54 million reported in the first quarter of last year.
Operating revenues rose to $231 million, 8 per cent growth over $214 million in the first quarter of last year. Whilst trade finance and treasury revenues surged, interest income was negatively impacted by lower interest rates and compression in credit spreads.
Operating expenses of $113 million increased by $14 million in part due to one off costs resulting in cost/income ratio of 49 per cent. Net impairment provisions were US$28 million against $15 million last year.
Shareholders’ equity at March 31 stood at $3.846 billion compared to $3.796 billion at 2012 year-end.
ABC group’s capital adequacy ratio at 23.2 per cent was substantially above the regulatory minimum (12 per cent) and comprised of predominantly Tier 1, which totalled 19.1 per cent. Liquid assets to deposits ratio stood at 58 per cent compared to 60 per cent at 2012 year-end.
ABC Group’s total assets stood at $25.1 billion at the end of the first quarter compared to $24.5 billion at 2012 year-end.
ABC's chairman Saddek El Kaber said: “These results demonstrate yet again the strength of our core businesses. ABC is reporting another successful quarter, with positive contribution from all its business units, in spite of the continuing challenges in our markets.
“We are confident that our drive to improve efficiencies and accelerate our on-going transformation in Mena will enhance the momentum in the coming future.” – TradeArabia News Service