ABC announces nine-month profit of US$158 million

Arab Banking Corporation today announced that its consolidated Group net profit for the first nine months of 2012 was US$158 million compared to US$157 million for the same period last year. Net profit for the third quarter was US$53 million compared to US$41 million last year. Total operating income for the third quarter amounted to US$200 million, same as last year, whilst operating expenses of US$98 million was marginally higher than US$97 million in the previous year. Cost/income ratio was maintained at 49%. Operating profit before impairment provisions reached US$102 million (2011: US$103 million). Net impairment provision charge of US$13 million was US$7 million lower than last year due to recoveries. After tax charge and share of minority interests, net profit for the quarter amounted to US$53 million, 29% higher than last year. Shareholders’ equity at 30 September 2012 stood at US$3,742 million, compared to US$3,672 million at the end of the second quarter. ABC’s capital base remains very strong with a capital adequacy ratio of 23.4%, predominantly Tier 1, which totalled 18.6%. ABC’s liquidity remains comfortable with the liquid assets to deposits ratio at 58%, compared with 59% at the end of the previous quarter. Mr. Hassan Juma, President & Chief Executive of ABC, said, “The results demonstrate the Group’s ability to deliver sustainable core earnings through its diversified product offerings across our geographies in spite of a continuing fragile economic climate in certain of our markets. Growth is well complemented by our robust risk management strategy and tight cost containment measures.” Mr. Saddek El Kaber, Chairman of ABC, stated, “I am pleased with ABC’s results. With strong capital, liquidity and funding firmly established to support its growth, ABC is building an excellent platform for its transformational journey to become a leading Universal bank.”