Total operating income amounted to US$16 million, 6% higher than last year of $15.1 million. Operating expenses increased by $0.8 million to $6.9 million, resulting in cost to income ratio of 43.3%, compared to 40.8% in last year, mainly due to higher staff expenses related to compensation scheme. Impairment provision of $0.5 million for regional exposure taken during the year was at the same level as of last year. Net profit for the fourth quarter was the same as of last year of $1.4 million.
Shareholders’ equity at 31 December 2012 stood at $236 million, compared to $227.7 million at 2011 year-end. The bank’s capital base remains very strong with a capital adequacy ratio of 26.2%, predominantly Tier 1, which totalled 25.3%.
ABC Islamic Bank’s total assets stood at $1.067 billion, compared to $1.035 billion at 2011 year-end.
“The financial results for 2012 are encouraging. Although net profit is marginally higher most of the growth this year has come from core earnings with a good mix of fee income and spreads. We remain optimistic about future opportunities arising from Islamic Banking finding great favour among markets emerging from the Arab Spring of 2011,” Naveed Khan, Managing Director of ABC Islamic Bank said.