ABC Islamic Bank announced its net profit for the first quarter of 2011 at $3 million; an increase of over 66% over the net profit of $1.8 million for the same period last year.
Total operating income for the first quarter was $4.8 million, compared to $3.9 million for the first quarter of last year. Operating expenses increased to $1.8 million, compared with $1.4 million for the same period of last year, mainly due to a timing recognition of staff expenses related to compensation for last year.
Shareholders’ equity at 31 March 2011 stood at $222.7 million compared to $219.8 million at 2010 year end. The bank’s capital base remains strong with a capital adequacy ratio of 23.5%, and a Tier 1 ratio of 23.1%.
ABC Islamic Bank’s total assets grew marginally to $1.249 billion at the end of the first quarter compared to $1.241 billion at year-end 2010.
“Despite turbulent times in the region we are off to a good start for the year. Core operating profitability has been consistently improving despite the one-off anomaly of increased expenses attributable to last year,” Naveed Khan, Managing Director of ABC Islamic Bank said, while commenting on the results.
“The year 2011 promises to be a challenging year as the markets have been confronted now with regional developments after a prolonged period of a global economic recession. We are confident however that ABC Islamic Bank, well supported by the ABC Group, will rise above these challenges as Islamic banking continues to find favour and grow strongly in the Arab World” he added.