ABC Islamic Bank has announced a net profit of $0.2 million for the third quarter of this year, compared to a loss of $0.4 million in the second quarter.

The bank reported net profit of $1.6 million for the nine months ending September 30, 2010.

Total operating income for the third quarter remained at the same level as the second quarter of $4.1 million. Operating expenses of $1.5 million were slightly lower than the previous quarter of $1.6 million.

Third quarter operating profit before impairment provisions improved 5 per cent to reach $2.6 million. Impairment provision in the third quarter was $2.4 million, compared to $2.9 million in the previous quarter.

ABC Islamic Bank’s total assets declined to $1.24 billion as at September 30, 2010 from $1.29 billion at June 30, 2010 mainly due to a decline in Murabaha receivables and Ijara assets.

“The operating performance of the bank continues to show improvement from the previous quarter despite higher provisioning required for an old collateral linked exposure. The capital base of the bank also remains strong with a Capital Adequacy Ratio greater than 23 per cent,” stated Naveed Khan, managing director, ABC Islamic Bank.-TradeArabia News Service