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Bank ABC Islamic reports $4.4m Q1 profit

MANAMA, May 12, 2016

Bank ABC Islamic posted a net profit of $4.4 million for the first quarter of 2016, 27 per cent lower compared to a record profit of $6.1 million reported for the same period last year, due mainly to a one-off transaction.

The results compare favourably with the fourth quarter 2015 which recorded a profit of $3.6 million.

Total margin income for the quarter was $5.1 million, compared with $.5.2 million reported in the first quarter of last year. Fee, commission and sale of investments were lower by $1.4 million in 2016 due to the same one-off in 2015. Operating expenses were marginally higher at $1.7 million, compared with $1.6million for the same period last year.

Shareholders’ equity at March 31 stood at $288 million, compared to $283 million at 2015 year-end. The bank’s capital base remains very strong with a capital adequacy ratio of 28.5 per cent, it said.

ABC Islamic Bank’s total assets stood at $1.361 billion at the end of the first quarter compared to $1.344 billion at 2015 year-end.

Commenting on the results, Naveed Khan, managing director of ABC Islamic Bank, said: “The first quarter of the year has been a challenging one, as the regional economic slowdown required proactive de-risking of the bank’s balance sheet, with prudent pruning in the contracting and real estate sectors. Despite such pre-emptive measures the bank retained similar margin income levels as 2015 with only a marginal increase in expenses. While the economic outlook for the region remains subdued, we take some comfort that the pro-active steps taken for de-risking will result in a stable asset portfolio.” - TradeArabia News Service
 




Tags: Bahrain | profit | Bank ABC |

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