Bank ABC Islamic Announces 47% Increase In Half-Year Profit to US$10.9 Million

Bank ABC Islamic today announced that its net profit for the first half of 2015 was US$10.9 million, 47% higher than the profit of US$7.5 million reported in the first half of 2014. Total operating income rose to US$14.5 million, compared to US$10.7 million for the first half of last year. Operating expenses were US$3.4 million compared to US$3.1 million for the same period of last year.

Net profit for the second quarter was US$4.8 million 22% higher than the same period of previous year. Total operating income for the quarter was US$6.7 million, compared to US$5.6 million for same period last year. Operating expenses were US$1.8 million compared to US$1.5 million in second quarter 2014.

Shareholders’ equity at 30th June 2015 stood at US$274 million, compared to US$264 million at 2014 year-end. The bank’s capital base remains very strong with a capital adequacy ratio of 21.7%, well above the regulatory minimum of 12.5%. Bank ABC Islamic’s total assets stood at US$1.609 billion at the end of the half year compared to US$1.328 billion at 2014 year-end.

Commenting on the results, Mr. Naveed Khan, Managing Director of Bank ABC Islamic said, “Balance sheet growth of 21% for the first six months of the year is in line with a higher growth trajectory for the Islamic banking industry compared to conventional banking in the region. What is encouraging for us however is a growth of 35% in fee, gain and commission income compared to an increase of 29% in margin income, which is a result of a conscious strategy of asset churn & debt capital markets in conjunction with the parent group. Expenses remain well controlled despite increased investment in head count leading to a satisfactory cost income ratio.”

Originally published on www.zawya.com