ABC Islamic Bank today announced a net profit of $6.7 million for the first nine months of 2011, 320% higher than last year. Net profit for the third quarter was $1.6 million compared to $2.1 million in the second quarter.
Total income for the third quarter was $3.2 million, compared to $4.2 million generated in the second quarter. Operating expenses were kept at the same level of last quarter of $1.5 million.
Shareholders’ equity at 30 September 2011 stood at $226.4 million, compared to $219.8 million at 2010 year-end. The bank’s capital base remains very strong with a capital adequacy ratio of 26%, predominantly Tier 1, which totaled 25.2%.
ABC Islamic Bank’s total assets declined to $1.145 billion at 30 September 2011 from $1.241 billion at year-end 2010.
Commenting on the results, Mr. Naveed Khan, Managing Director of ABC Islamic Bank said,” We expect the balance sheet will continue to de-lever until the end of the year before asset growth starts to pick up again. Profitability is expected to remain buoyant due to a combination of higher spreads as European Banks focus on achieving capital requirements and a general stabilization in the provisions regime. We are beginning to see a gradual pick-up in economic activity within the region and also in corporate loan demand. ABC Islamic Bank has a unique niche & natural synergy within the Group’s product family which we will continue to leverage within the Group’s Universal Banking subsidiaries going forward”.