Bank ABC Islamic today announced that its net profit for the year ending on December 31, 2016 was $22.9 million, 16 per cent higher than previous year’s net profit of $19.7 million.

Net profit for the fourth quarter of 2016 was $6.1 million, 70 per cent higher than the $3.6 million reported for the same period in 2015, the bank said.

Total operating income rose to $30.5 million, with an increase of 11.7 per cent over the previous year of $27.3 million. Operating expenses were kept nearly flat at $7.3 million. No impairment provisions were required during 2016, demonstrating credit quality soundness of the portfolio in a challenging credit environment.

Shareholders’ equity at December 31, 2016 stood at $306.7 million, compared to $283.2 million at the 2015 year-end. The bank’s capital base remains extremely strong with a capital adequacy ratio of 28 per cent, well above the regulatory minimum of 12.5 per cent.

ABC Islamic Bank’s total assets stood at $1.634 billion, compared to $1.344 billion at the 2015 year-end.

Commenting on the results, Naveed Khan, managing director of ABC Islamic Bank, said: “I am so pleased with these results, particularly that they come in the context of a challenging year for our markets. The regional economic slowdown required proactive de-risking of the bank’s balance sheet, with pruning of sectors most vulnerable to the economic downturn.

"This de-risking of the balance sheet was done to keep credit costs under control and take advantage of expected higher margins. Both objectives were achieved. Likewise, cross sell initiatives undertaken with the group’s debt capital markets team and treasury sales have yielded good results on total operating income to risk weighted asset ratios, as more capital light products and solutions are being rolled out to customers. ABC Islamic Bank is well positioned to meet the extra challenges that 2017 is expected to bring,” said Khan. - TradeArabia News Service