ABC net profit rises 7pc to $112m in H1
Manama, July 25, 2013
Arab Banking Corporation (ABC) yesterday reported a seven per cent increase in its consolidated net profit to $112 million for the first half of the year, compared with $105 million for the same period last year.
Net profit for the second quarter of the year was $56 million, 10 per cent higher than $51 million reported during the same period in the previous year, according to a report in the Gulf daily News, our sister publication.
Total operating income for the second quarter was $210 million, 9 per cent higher than $193 million achieved during the same period last year.
Despite adverse exchange rate changes in emerging markets and the persistent compression in credit spreads, total operating income grew on the back of increased fee income from lending, finance and treasury activities.
Total operating expenses for the second quarter were $115 million, an increase of 12 per cent over $103 million in the same period last year in part owing to one-off restructuring costs.
Net impairment provisions for the second quarter were $10 million, marginally down from $13 million in the same period of the previous year.
Deposits continued to grow during the year from $17.2 billion at the end of last year to $17.9 billion, resulting in a further improved liquidity position.
Shareholders' equity as on June 30 stood at $3,819 million, compared with $3,846 million at the end of the first quarter and $3,778 million at the end of last year.
The slight decrease during the second quarter was mainly due to exchange translation on foreign subsidiaries following the rise in the dollar.
ABC's capital base remains very strong, with a capital adequacy ratio of 22.7 per cent, predominantly Tier 1, which totalled 18.7 per cent.
ABC Group's total assets stood at $25.3 billion at the end of the second quarter, 3 per cent higher compared with $24.5 billion at 2012 year-end.
"Despite adverse conditions in the Middle East and North Africa region, the ABC Group continues to achieve targets on a consistent basis," chairman Saddek El Kaber said.
"I am pleased with the efforts to enhance efficiencies on all fronts, laying a solid foundation for accelerated growth and transformation," he added. – TradeArabia News Service