ABC reports $193m operating income for Q2
Net profit for the second quarter was $51 million compared to $54 million in the first quarter of 2012. Total operating income amounted to $193 million, below $214 million in the first quarter, mainly due to lower interest rates and exchange rate changes in Brazil even as income from lending activities increased on the back of higher volumes whilst trade finance activities continued to remain high. Total operating expenses were $103 million compared to $99 million and net impairment provisions were $13 million against $15 million in the previous quarter.
“Shareholders’ equity at 30 June 2012 stood at $3.672 billion, compared to $3.674 billion at the end of the first quarter, the decrease occurring mainly due to exchange translation on foreign subsidiaries following the rise in US dollar,” the bank in a statement said.
“ABC’s capital base remains very strong with a capital adequacy ratio of 23.0%, predominantly Tier 1, which totalled 18.6%. ABC’s liquidity remains very comfortable with deposits increasing by over $1 billion and Repo funding dropping by $2 billion during 2012. ABC Group’s total assets stood at $24.4 billion at the end of the half year compared to $25.9 billion at the end of the first quarter 2012,” it added.
“In spite of the volatile markets and weak business sentiment across several countries, we are pleased to report another profitable quarter, for the fourth year running, with all ABC units contributing to this success,” Hassan Juma, President & Chief Executive of ABC, said.
“ABC’s performance has been excellent. With its strong capital and exceptional liquidity and funding position in tough markets, the bank is well positioned to expand organically and through acquisitions to further enhance its geographical reach,” ABC’s Chairman, Saddek El Kaber said.
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