Operating revenues rose to $231 million, 8% growth over $214 million in the first quarter of last year. Whilst trade finance and treasury revenues surged, interest income was negatively impacted by lower interest rates and compression in credit spreads. Operating expenses of $113 million increased by $14 million in part due to one off costs resulting in cost/income ratio of 49%. Net impairment provisions were $28 million against US$15 million last year.
Shareholders’ equity at 31 March 2013 stood at $3.846 billion compared to $3.796 billion at 2012 year-end. ABC group’s capital adequacy ratio at 23.2% was substantially above the regulatory minimum (12%) and comprised of predominantly Tier 1, which totalled 19.1%. Liquid assets to deposits ratio stood at 58% compared to 60% at 2012 year-end.
ABC Group’s total assets stood at $25.1 billion at the end of the first quarter compared to $24.5 billion at 2012 year-end.
“These results demonstrate yet again the strength of our core businesses. ABC is reporting another successful quarter, with positive contribution from all its business units, in spite of the continuing challenges in our markets. We are confident that our drive to improve efficiencies and accelerate our on-going transformation in MENA will enhance the momentum in the coming future,” ABC’s Chairman, Saddek El Kaber, said.