ABC Islamic Bank announces 264% increase

ABC Islamic Bank today announced a net profit of $5.1 million for the first half-year of 2011, 264% higher than last year. Net profit for the second quarter was $2.1 million compared to $3.0 million in the first quarter. Total income for the second quarter was $4.2 million, compared to $4.8 million generated in the first quarter. Operating expenses decreased to $1.5 million compared to $1.8 million in the previous quarter. An impairment provision of $0.5 million was taken during the quarter reflecting a conservative higher amount related to an old impaired account from 2009. Shareholders’ equity at 30 June 2011 stood at $224.8 million, compared to $219.8 million at 2010 year-end. The bank’s capital base remains very strong with a capital adequacy ratio of 24.2%, predominantly Tier 1, which totaled 23.7%. ABC Islamic Bank’s total assets declined to $1.195 billion at 30 June 2011 from $1.241 billion at year-end 2010. Commenting on the results, Mr. Naveed Khan, Managing Director of ABC Islamic Bank said, ”It is encouraging that despite considerably lower asset volumes, the mix of margin and fees have outperformed results for the same period last year. Despite turbulent times in the region we are off to a good first half of the year. Core operating profitability has been generally improving. The remaining part of 2011 promises to be challenging as the markets continue to experience regional developments after a prolonged period of global economic recession. We are confident that ABC Islamic Bank, well supported by the ABC Group, will rise to these challenges as Islamic banking continues to find favour and grow strongly in the Arab World.” EM