ABC Islamic Bank has posted a net profit of $15.1 million last year, a 23 per cent increase as compared to $12.2 million recorded in 2013.

The net profit for the fourth quarter was $3.6 million, 19 per cent higher than the same period of the previous year, said a statement.

The total operating income rose to $22.2 million, increase of 22.7 per cent over last year, positively covering a 22.4 per cent increase in expenses of $6.8 million.

The comparative increase in expenses was mostly due to a one-off write back in 2013 and some proportionate increase attributable to new hiring of marketing staff last year, it said.

No impairment provisions were required during the year, demonstrating continuing improvement in credit quality.

Naveed Khan, managing director of ABC Islamic Bank, said: “There is optimism for 2015 and beyond. Although lower oil prices, and the possibility of lower economic growth for the region, represent new challenges, new investments in our teams and products capability should help us steer through successfully and continue to serve our clients.

“High profile syndicated transactions and asset churn are gaining traction along-with further widening of Islamic products and a solid platform for Debt Capital Market activity in conjunction with the Group’s Debt Capital Market team.
 
“We are grateful that these achievements of ABC Islamic Bank have been vindicated by the market place also. ABC Islamic Bank was the first Islamic Bank to obtain a rating from the Islamic International Rating Agency (IIRA). This was reaffirmed in September 2014 as being unchanged from the previous year at A-/A-2 on the International scale and A+(bh)/A-1(bh) on the National scale with a stable outlook.” - TradeArabia News Service