ABC Islamic Bank has registered a $3.5 million net profit for the first quarter, up 9 per cent over $3.2 million reported last year.

The total operating income rose to $5.2 million, posting a 26 per cent growth over $4.1 million in the first quarter of last year. Operating expenses too increased to $1.6 million compared to $0.8 million for the same quarter of last year.

Shareholders’ equity at 31 March 2014 stood at $252 million, compared to $248 million at 2013 year-end. The bank’s capital base remains very strong with a capital adequacy ratio of 26.9 per cent, predominantly Tier 1, which totalled 26.5 per cent.

ABC Islamic Bank’s total assets stood at $1.131 billion at the end of the first quarter compared to $1.002 billion at 2013 year-end.

Commenting on the results, Naveed Khan, the managing director, said: "The financial results for the start of 2014 are encouraging. There was a 26 per cent growth in overall operating revenues compared to the same period last year. However a large one-off credit to expenses in 2013 showed a 9 per cent increase in net profit in 2014."

"Fee and commission income also saw a 53 per cent increase compared to the first quarter of 2013. Revenue lines remain buoyant and we are hopeful that the rest of the year will see further consolidation on positive momentum built up during 2013,” he added.-TradeArabia News Service