Bahrain-headquartered Arab Banking Corporation (ABC) announced $158 million net profit for the first nine months of 2012 compared to $157 million for the same period last year.
Net profit for the third quarter was $53 million compared to $41 million last year.
Total operating income for the third quarter amounted to $200 million, same as last year, whilst operating expenses of $98 million was marginally higher than $97 million in the previous year. Cost/income ratio was maintained at 49%. Operating profit before impairment provisions reached $102 million (2011: $103 million). Net impairment provision charge of $13 million was $7 million lower than last year due to recoveries. After tax charge and share of minority interests, net profit for the quarter amounted to $53 million, 29% higher than last year.
Shareholders’ equity at 30 September 2012 stood at $3.742 billion, compared to $3.672 billion 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.
“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,” Hassan Juma, President and Chief Executive of ABC, said.
