ABC Islamic Q3 profit up 75% to $2.8m

Naveed Khan
ABC Islamic Bank announced that its net profit for the third quarter was $2.8 million, 75% higher than third quarter 2011 of $1.6 million, and 15% higher than second quarter of 2012 of $2.4 million. Total operating income amounted to $4.3 million compared to $ 4 million for the second quarter of 2012. Operating expenses were kept nearly flat at $1.4 million. Net profit for the first nine months of 2012 was $6.8 million compared to $6.7 million for the same period in 2011.

Shareholders’ equity at 30 September 2012 stood at $234.6 million, compared to $231.8 million at the end of the second quarter. The bank’s capital base remains very strong with a capital adequacy ratio of 25.9%, predominantly Tier 1, which totalled 25.2%.

ABC Islamic Bank’s total assets stood at $1.123 billion at 30 September 2012 compared to $1.047 billion at the end of the second quarter.

“We are pleased to see that our resumption of growth coincides with an uptick in economic activity across our target markets and the region confirmed by higher loan demand from customer segments. We are also pleased that the growth in results has come mostly from core earnings this year. New transactions undertaken have led to overall higher margin income while regional distribution of assets originated in non-presence countries has contributed healthy fee income. We are cautiously optimistic that this momentum will feed through into the next quarter as well and beyond into the year ahead,” Naveed Khan, Managing Director of ABC Islamic Bank, said.

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