Bank ABC Islamic today reported a net profit of $10.9 million for the first half of 2015, a 47 per cent increase over $7.5 million reported in the first half of 2014.

Total operating income rose to $14.5 million, compared to $10.7 million for the first half of last year. Operating expenses were $3.4 million compared to $3.1 million.

Net profit for the second quarter was $4.8 million, 22 per cent higher than the same period of previous year.  Total operating income for the quarter was $6.7 million, compared to $5.6 million for same period last year.  Operating expenses were $1.8 million compared to $1.5 million in second quarter 2014.

Shareholders’ equity as at June 30, 2015 stood at $274 million, compared to $264 million at 2014 year-end. The bank’s capital base remains very strong with a capital adequacy ratio of 21.7 per cent, well above the regulatory minimum of 12.5 per cent, it said.
 
Bank ABC Islamic’s total assets stood at $1.609 billion at the end of the half year compared to $1.328 billion at 2014 year-end.

Naveed Khan, managing director of the bank, said: "Balance sheet growth of 21 per cent for the first six months of the year is in line with a higher growth trajectory for the Islamic banking industry compared to conventional banking in the region. What is encouraging for us however is a growth of 35 per cent in fee, gain and commission income compared to an increase of 29 per cent in margin income, which is a result of a conscious strategy of asset churn and debt capital markets in conjunction with the parent group. Expenses remain well controlled despite increased investment in head count leading to a satisfactory cost income ratio.”  - TradeArabia News Service