Arab Banking Corporation (ABC) today announced that its consolidated group net profit for the first quarter increased 13 per cent to $54 million.

Operating revenues rose to $214 million, a 9 per cent growth over the first quarter of last year, the bank said.

Both interest and non-interest income contributed to the $17 million increase in operating revenues. Operating expenses of $99 million were at the same level as last year resulting in cost/income ratio improving to 46 per cent from 50 per cent last year. Net impairment provisions were $15 million against $7 million last year, it said.

Shareholders’ equity as at March 31, 2012 stood at $3,674 million compared to $3,598 million at 2011 year-end.

ABC group’s capital adequacy ratio at 23.3 per cent was substantially above the regulatory minimum (12 per cent) and comprised predominantly Tier 1, which totalled 19.1 per cent. Liquid assets to deposits ratio stood at 63 per cent compared to 64 per cent at 2011 year-end, it said.

ABC Group’s total assets stood at $25.9 billion at the end of the first quarter compared to $25 billion at 2011 year-end.

Hassan Juma, president and chief executive of ABC, said: “This is the fourth year of sustained profit growth at ABC. There are still financial and economic headwinds in Mena and Eurozone countries and we continue to remain vigilant with strict risk and cost discipline in force. The strong start to the year following the excellent results of last year reflects the good performance by all ABC units in challenging environments.”

ABC chairman Saddek El Kaber stated: “I am pleased at the first quarter result which sets the platform for the rest of the year. Given ABC’s track record in overcoming tough conditions, its geographic reach and strong financial position backed by steadfast shareholder support I have every confidence in ABC’s sustained growth going forward.” – TradeArabia News Service